Author Topic: Non-Nats Offseason news  (Read 8974 times)

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Offline JCA-CrystalCity

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Re: Non-Nats Offseason news
« Reply #75: December 09, 2012, 11:35:42 AM »
Assuming the wiki is right, the luxury tax threshold is $178 MM for 2013, and a first time exceedance is taxed at 22.5%.  The Dodgers are at $235MM.  We'll assume that is the right rough number - B-R had them at $195MM before Greinke, but there are additional costs beyond payroll in the tax calculation.  The tax is a bit less than $13MM, effectively bringing their contract costs up to ~$248MM. 

In other words, the Dodgers use all of their local TV revenue to cover payroll.  If the Nats did that, they would have a <$30MM payroll.  :?

Blue has pointed out that there are other penalties for having such a high payroll, including losing some general revenues of MLB and having to subsidize Loria et al.   The Dodger should draw 3 million fans again, so maybe they can make money, but I think their payroll is unsustainable, especially when the luxury tax starts to escalate for repeat offenders.  I'm expecting them to start dumping players like Ethier, and maybe look for a taker on Beckett and others if they somehow are not contending.