While the Los Angeles Dodgers have made a conscious effort in recent seasons to lower their MLB-leading payroll, the newly agreed upon collective bargaining agreement provides further incentive to get below the competitive balance (luxury tax) threshold.
In 2014 the Dodgers took over the New York Yankees for the highest payroll in baseball. They’ve held that title since, surpassed the luxury tax threshold in each of the past four seasons, and face a 50 percent tax penalty for doing so in 2016.
Last year the Dodgers were hit with a record $43.7 million tax bill, or a 40 percent tax on their 2015 payroll that was just shy of $300 million.