The Dodgers plan to keep their player payroll below the level that would require a luxury tax payment for at least the next four years, according to a document prepared for potential investors that was reviewed by the Los Angeles Times.
By cutting payroll this year to the point where they were not assessed a tax, the Dodgers also reduced their tax rate for future years. However, if they do not wish to pay the tax at all, the Dodgers could be hard-pressed to sign any top free agents this winter, including coveted outfielder Bryce Harper.
The Dodgers spent $195 million in player payroll this year, when they advanced to the World Series for the second consecutive season after winning the National League West for the sixth time in their six full seasons under the ownership of Guggenheim Baseball Management.