Dodgers Pay $11.4m Luxury Tax, Do Not Care

dodger_dugout_2013nlcs_game5

Last November, I looked at just how badly the Dodgers were going to blow past the luxury tax, guessing that it would be a little over $9 million. That was obviously at that moment in time — the team hadn’t signed Zack Greinke or Hyun-jin Ryu yet, and it’s incredibly difficult, if not impossible, to guess what sort of incentives and trades will happen over the course of the season — and was just an estimate. As it turns out, the actual bill was $11.4m, per reports, which… well, so what?

$11.4 million in today’s game, for today’s team, well, it’s just not a whole lot. That’s tough to hear for the average person, but it’s true. It’s slightly more than Dan Haren is guaranteed next year, and he’s a past-his-prime starter who probably could have made more if he’d been more willing to explore outside of California. The tax is a good thing for baseball, because it helps the smaller teams and somewhat limits the upper echelon, but it’s not something that should stop a team like the Dodgers from spending.

…For now, anyway. First-time offenders are taxed at 17.5% of their overage above the $189m limit, and that increases to 30%, then 40%, then a whopping 50%. This is why the Yankees (hit for $28m this year) are trying so hard to stay under that limit, though it seems like they’re not going to do it, and they can arguably afford the tax anyway. Ideally, you don’t keep exceeding that limit every year, because even one time under can reset you to the beginning.

That’s not going to happen for the Dodgers in 2014, since I have them down at approximately $240m already, and that doesn’t yet include Juan Uribe, J.P. Howell, anything else they might do, or the ~$11m worth of non-player administrative costs that are included as well. They’re well on their way to blowing past it in 2015 and ’16 as well, assuming that giant annual costs for Clayton Kershaw (and lord knows what else) gets counted in there.

Someday, if Stan Kasten’s vision of a big immediate splash giving way to a strong farm system comes to pass (and we’ve obviously seen huge strides in developing talent), maybe the Dodgers won’t be paying a luxury tax. But with years of Matt Kemp, Carl Crawford, Adrian Gonzalez, Zack Greinke, and Andre Ethier to come, plus possible extensions for Kershaw and Hanley Ramirez, plus future moves we can’t even theorize about at this point, it’s not going to happen any time soon. So long as that doesn’t restrict player acquisition, as it has for the Yankees, that’s a hit the team will have to live with. It seems they can, and so we should be thankful for approximately the 1,298,927th time that the Guggenheimers are here, and McCourt is not.

765 comments
ryus_hadouken
ryus_hadouken

Hi, first time poster here! 

 Has anyone been paying attention to Alexander Guerrero this whole time? What's his stat line been like? Are there any serious injuries plaguing him thus far?

. . . I'm going to miss M. Ellis, badly. He was just one of those players that always got a big hit or managed to be in scoring position just when you needed him. And I think it's a real bitch that he moved onto my least favorite baseball team, the Cards. (I hate cards more than SF because they have a history of being our Gandalf come play off time: "YOU SHALL NOT PASS!"  

Buuut, if Alexander is another Cuban ringer.. One that can adjust when the league adjusts to him (unlike Puig this years post-season) than, I think he will thrive at Dodgers stadium. And a healthy Hanley  for the season will make up for IF power.


Thanks!

Mike Petriello
Mike Petriello moderator

I am listening to Frank Black and writing about baseball and drinking a friend's home-brewed iced coffee and hanging out with you guys. Things do not suck.

DBrim
DBrim moderator

Yay, no parking ticket.

PuigMode sinceJune3
PuigMode sinceJune3

I like what Dodgers are doing...if MLB is trying to keep teams from using $$ to dominate scouting and development, why not hire the best scouting dept money can buy and be better than everyone else?

#creative

InsideThePark (Ethier, Kemp, Puig)
InsideThePark (Ethier, Kemp, Puig)

Got "Trouble With the Curve" on Netflix today. Not sure it's a baseball movie, more a movie that has baseball in it.

Fantastic film, Amy Adams, Clint amazing. Justin Timberlake was up and down though.

LA_Woman
LA_Woman

WTF? Whole lotta ghosting going on.

Omer (beercoozie)
Omer (beercoozie)

alright gang. i'm at work and it's time to go home and go to bed.


see you all tomorrow.

Tired Math Cat
Tired Math Cat

okay you ravers and dranks. I'm going to go to bed now. good night. 

deBlueProgeny
deBlueProgeny

My son just said he does NOTwant me to drive him to his 6th grade camp trip.

Damn. Its started.

efb
efb

When i was in college i was working at my high school as an assistant and I ran into one of my students at EDC, not fun lol but at the time i was like OMG IT'S YOU!!!

Purple Drank
Purple Drank

yeah @efb I'm following the VND rule... go check out EDC once while you're young, because I'm 25 and I barely survived it this year. Just too old and my sleep schedule got all messed up and work sucked for a week after. Also, nothing like coming back at 6am on Monday, seeing the sun rise, and saying, "fuck, I have to wake up for work in 24 hours"

KMT59
KMT59

@ryus_hadouken everyone moved to a new thread (article)...might want to try again

DodgerBytes
DodgerBytes

@Mike Petriello the good life. For a second, I thought you were drinking beer...then I finished reading the sentence. 

DodgerBytes
DodgerBytes

I figured out the formula.

$5M per win last year, w/ bonus of $1M per yrs old.

$120M over 10 years w/ $25M signing bonus.

DBrim
DBrim moderator

No snow days here.

MSTI OG
MSTI OG

theres a very powerful database center located in Boston that has been closed due to weather and its pissing me off. i need info and my account has become tripped up

Omer (beercoozie)
Omer (beercoozie)

@deBlueYeah, I know what you mean. Sometimes I feel kind of bad if I don't pop in. But life kind of gets in the way of things. Y'know, kids and stuff like that.


I'm just glad I haven't been Bozo'd yet.

Omer (beercoozie)
Omer (beercoozie)

@deBlueMy three-year-old does the same shit. Ignores me and my wife. Then gets pissed when I yell at her to get her attention.

DBrim
DBrim moderator

Hi

DBrim
DBrim moderator

Are useless, yes.

Purple Drank
Purple Drank

@efb @Mulled Purple Drank 7pm to 6am goodness. Sleep, wake up at 2pm, eat at a buffet, sit by a pool or gamble for an hour, and then you're heading back to the venue.

Mike Petriello
Mike Petriello moderator

@DKDodgers @DBrim but zero in this case, because we can't even really know much about the quality of competition, and I have no idea about his team's offense, D, bullpen, etc.

deBlueProgeny
deBlueProgeny

@Omer (beercoozie) @Mulled Purple Drank @efb that was cool, cuz it wasnt my usual crowd, they were cool, and it was fun to hang out with guys being guys...As it happens most of my friends in my life have been women, and while that is noce and all, its also great to go do things with guys....not that all sailors are guys.

Omer (beercoozie)
Omer (beercoozie)

@deBlue@Omer (beercoozie)@Mulled Purple Drank@efbLike one of the goofier things I've done was when I was doing an apprenticeship at a tattoo parlor in Florida. One of my best friends was teaching me. He and I stayed at the shop after closing to strip the wax off the floor then re-wax it. We were there all night. I watched the sun come up and didn't go to bed until it was around 9 or 10am. But it was awesome because I was hanging out with my friend the whole night and we spent the whole time being dorks.

deBlueProgeny
deBlueProgeny

@Omer (beercoozie) @deBlue @Mulled Purple Drank @efb I can't compare..no basis for the comparison. I know that preparing for my qualifying exam I spend a month working every waking instance and slept less than 3-4 hours per night on average, sometimes a full night, but often three nights in a row with none. In retrospect, I probably could have done the whole thing more efficiently, without my obsession for perfection.

Purple Drank
Purple Drank

@efb @Mulled Purple Drank Though I had friends that not only did EDC, they just continued rolling for the energy. Went to day clubs after taking an hour long nap, eating breakfast, and then heading back to the venue. He said he got 4 hours of sleep the entire weekend. JFC.