The Los Angeles Dodgers have been able to avoid the luxury tax the last three seasons, but that appears to be changing in 2021.
The Dodgers on Saturday re-signed Justin Turner to a two-year deal worth $34 million, and a team option for the third year. The team’s current payroll is listed at $254.7 million, according to COT’s Baseball Contracts.
That projection is over the $210 million base luxury tax threshold, as well as the two luxury tax surcharge thresholds, which occur at $230 and $250 million.
If the Dodgers’ payroll remains over $250 million, not only would they face the highest tax, but they would be penalized on their first-round draft pick.
As of now, Dodgers would be over highest luxury-tax threshold of $250M. If they end season there, they would pay highest possible tax and 1st draft pick would move back 10 spots. Past three years of being under helped set up this splurge. Lots of money coming off books after ‘21.
— Ken Rosenthal (@Ken_Rosenthal) February 14, 2021
Don’t assume anything about the Dodgers staying above the $250 million mark. They have a creative front office that might attempt to get under the $250 million mark. David Price’s contract ($31 million in 2021) is something they might look to move.
