IN Los Angeles Dodgers opened the season with the highest ever salary of $ 310.6 million for luxury tax purposes and is on track to pay a record tax of nearly $ 47 million, according to data collected by Premier League Baseball and received from the Associated Press.
Five teams have exceeded the $ 230 million threshold by the opening day, which, if left unchanged until the end of the season, will be one of the highest in 2016.
After adding Freddie Freeman and making a big one-year deal with Trea Turner, Los Angeles was the only team to cross the new fourth threshold, the so-called Cohen Tax, named after New York Mets owner Stephen Cohen. But the Dodgers’ salaries will fall by about $ 28.1 million if the removal of Trevor Bauer’s pitcher of domestic violence is confirmed by an arbitrator. The Dodgers’ salary was $ 34 million for Bauer, the average for his three-year contract was $ 102 million.
The Mets, in their second season since Cohen bought the team, were second with $ 289.3 million – $ 667,278 under Cohen’s tax. That left them on the verge of paying a tax of just under $ 22.5 million after adding pitcher Max Scherzer, central player Starling Marte, outfielder Mark Canya and All Star player Eduardo Escobar.
The Yankees were third with $ 261.4 million, which will lead to a tax of $ 7.6 million.
Philadelphia, which fired manager Joe Girardi on Friday after a bad start, was fourth with $ 233.1 million, on the verge of paying a tax of approximately $ 629,000, Boston was fifth with $ 232.3 million, which will lead to a tax of about $ 466,000.
San Diego, the only team other than the Dodgers to pay taxes last year, started this season with $ 694,982 below the initial threshold of $ 230 million.
The luxury tax charts include annual averages of all players on a list of 40 people plus just over $ 16 million per compensation team and $ 1.67 million for each club’s share of the new $ 50 million player pool before pre-arbitration. The figures also include money owed to exempt players, redemption of options and cash transactions.
The totals change during the season as transactions and moves are made on the list and the tax is charged based on the final figure in December. For players who remain in payroll arbitration, MLB has included club offers in its payroll data.
According to a collective bargaining agreement reached in March after a 99-day lockout, the four tax thresholds this year are $ 230 million, $ 250 million, $ 270 million and $ 290 million. For the first time, offenders pay 20% of the amount above the first threshold, 32% above the second, 62.5% above the third and 80% above the fourth.
As a recidivist, the Dodgers pay 30% over the first, 42% over the second, 75% over the third and 90% over the fourth. Los Angeles paid taxes every season from 2013-17, and its total bill last year reached $ 182 million since the luxury tax began in 2003. This is second only to Yankees’ $ 348 million bill.
If the Dodgers owe 2023 tax, they will pay 50% above next year’s first threshold of $ 233 million, 62% above $ 253 million, 95% above $ 273 million and 110% above $ 293 million.
So far, the previous luxury tax pay peak was $ 297.9 million for the Dodgers in 2015, leading to a record tax of just under $ 43.6 million.
The team’s tax rates are reset to the lowest level after falling below the initial threshold in any given year.
Four teams had luxury tax salaries below $ 100 million: Auckland ($ 64.8 million), Pittsburgh ($ 73.5 million), Baltimore ($ 79.9 million) and Cleveland ($ 91.2 million).
Also this week, the Players’ Association released its study on salaries for 2021, which showed that the average baseball salary has fallen by 10.2% from 2017 to last season.
The union estimated the average for 2021 at $ 3,679,335, which is 5.2% less than it would have been at full pay in 2020 if the season had not been cut short by the coronavirus pandemic.
After rising from $ 3.97 million in 2016 to a record just under $ 4.1 million in the first year of the new collective bargaining agreement, the average fell $ 1,500 in 2018 to $ 4.05 million. in 2019. The average for 2020 would be $ 3.89 million had a full schedule, but was reduced to $ 1.6 million from proportional salaries during the 60-game season.
The union usually issues its payroll in December, but the 2021 edition was postponed until employees were engaged in collective bargaining.
The figures are based on salaries for 2021, bonuses won and proportional shares of signing bonuses for 1,070 players on a list of 26 people and lists of injured as of 31 August. MLB, using a slightly different methodology, calculated an average of $ 3,579,341.
An Associated Press study found that the average value on the starting day this year rose 5.9% to $ 4.4 million, using expanded first day lists and midpoints for players remaining in arbitration. The average is declining over the course of the season as veterans are laid off and replaced by younger players with lower salaries.
Report from the Associated Press.
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