NEW YORK (AP) – The Los Angeles Dodgers have been fined an unprecedented $103 million this year, eclipsing Major League Baseball’s record of nine teams paying luxury taxes, including a fine of $97.1 million to the New York Mets. The dollar bill has raised the total tax bill under high-spending owner Steve. Mr. Cohen is worth about $229 million.
of World Series Champion Dodgers You will have to pay taxes for 4 consecutive years. The Dodgers’ $353 million tax bill includes $1,032,454 in non-cash compensation for Shohei Ohtani, whose contract requires the use of Dodger Stadium’s game suite and an interpreter.
The Yankees are $62.5 million in debt, according to figures finalized by Major League Baseball and the players’ association on Friday and obtained by The Associated Press. It was followed by Philadelphia ($14.4 million), Atlanta ($14 million), Texas ($10.8 million), Houston ($6.5 million), San Francisco ($2.4 million) and Chicago Cubs ($570,000).
The total tax bill was $311.3 million, exceeding last year’s record $209.8 million paid by eight teams. The tax is expected to be paid to MLB by January 21st.
More than $1 billion in taxes have been collected since penalties began in 2003, with 15 teams paying $1.23 billion. The Yankees lead with $452 million, followed by the Dodgers with $350 million and the Mets.
Toronto reduced its tax liability to $233.9 million, below the $237 million threshold, with a series of summer trades. The Blue Jays were expected to start the season with $244.3 million.
Chicago just passed the threshold at $239.85 million.
The Mets reduced their luxury tax payroll to $347.7 million from last year’s record high of $374.7 million, and also reduced their taxes from last year’s then-high $100.8 million. Dodgers, Mets, Yankees ($316.2 million) added to 2022 labor contract, “ cohen tax In an effort aimed at slowing his spending.
Of the teams paying the tax, the Giants, Rangers and Cubs missed the playoffs.
Total luxury tax payroll increased 2.3% to $5.924 billion from $5.793 billion a year ago.
The tax liability is calculated by averaging the annual value of players on the 40-man roster, including acquisition bonuses, with just over $17 million per team in allowances and a pre-arbitration pool of players starting in 2016 of $50 million. Each club’s share of the dollar will be $1.67 million. 2022. Deferred salary and deferred bonus payments are discounted to their current value.
The Mets, Dodgers, Yankees, and Phillies are required to pay taxes for three consecutive years, so 50% for the first $20 million above the $237 million threshold and 62% for the next $20 million. You pay the 95% tax rate if: Amounts from $277 million to $297 million and 110% of amounts in excess.
The Braves and Rangers will owe taxes for the second year in a row, paying 30% on the first $20 million and 42% on the next $20 million.
Houston is paying the tax for the first time, but the Astros exceeded that threshold in 2020. Penalties suspended due to coronavirus pandemic. The Giants are paying. First time since 2017 and Cubs first time since 2019.
Under the labor contract, the first $3.5 million of the tax will go towards player benefits, with the remaining 50% going to players’ personal retirement accounts. The remaining 50% will go into the Commissioner’s Supplemental Discretionary Fund and will be distributed to teams that are eligible to receive revenue sharing and increase local non-media revenue. This year, the league and MLB agreed to each grant discretionary funding distributions of up to $15 million to teams that experience a decline in local media revenue starting in 2022 or 2023.
The initial threshold for next year is $241 million. For the Mets, Yankees, Dodgers, and Phillies. In the case of the Braves and Rangers, they would pay the top tax rate of 110% on amounts above $301 million.
___
APMLB: https://apnews.com/hub/mlb
