After a second consecutive early playoff exit, the Los Angeles Dodgers have taken a more aggressive approach with improving their roster this offseason.
With less than three weeks until Dodgers pitchers and catchers report for the start of Spring Training, the team has committed more than $1 billion to sign Shohei Ohtani, Yoshinobu Yamamoto, Tyler Glasnow and Teoscar Hernández.
As it currently stands, the Dodgers’ competitive balance tax (CBT) payroll for the 2024 season is around $292 million. That ranks third in baseball behind the New York Mets ($299 million) and New York Yankees ($294 million).
The base luxury tax threshold for the 2024 season is set at $237 million, which the Dodgers are already over. L.A. could potentially exceed the fourth and final luxury tax threshold of $297 million — dubbed as the “Steve Cohen tax” — where clubs face the most significant penalties.
Dodgers general manager Brandon Gomes is not concerned about the possibility and will continue acquiring talent if there are opportunities to do so.
“You guys hear us talk about it a lot and I’m sure it’s boring,” Gomes said. “Right now, just be opportunistic. We feel good with our team. If Spring Training started tomorrow, we feel we have talent and depth in most areas.
“So it’s just continuing to evaluate and where opportunities present themselves for us to become even better, we’ll try to do that. But not feeling pressured to try and do anything either way.”
The Dodgers’ total expenditures will likely go up as they are still in search of another starting pitcher and possibly a reliever. They have been connected to Ryan Brasier, as well as a pair of relievers that just signed with other clubs in Josh Hader and Robert Stephenson.
The Dodgers would have to pay a 110% tax on any payroll amount over $297 million.
Dodgers among 8 teams that paid luxury tax penalty for 2023
The Dodgers finished the 2023 season with a CBT payroll of $268,161,290 and were one of eight teams that paid a penalty. Their tax bill came out to $19.4 million, which ranked fourth behind the Mets ($101 million), San Diego Padres ($39.7 million) and Yankees ($32.4 million).
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