Luxury Tax.

[Mitchrapp]

http://espn.go.com/mlb/story/_/id/1...luxury-tax-most-major-league-baseball-history
Dodgers lead MLB with record $43.6 million paid in luxury tax. Followed by Yankees at $26.1 with Boston and SF both less than $2m.

My question even at the lowest tax 17.5 % - $297.9 million, the Dodgers spent, is near 52m. Goes up from 17.5% in consecutive years of over the luxury tax.

So why did LA get off cheap? Or maybe my math is wrong..

 

[Rebbiv]

"The successful teams, whether they're big market, small market, large payroll, small payroll, you've got to develop your own players," Mets general manager Sandy Alderson said during the postseason. "That's the currency with which we deal."


Not a truer statement has ever been made. There might be just 4-5 home grown Tigers on the 2016 Opening Day roster.

 

[Rebbiv]

http://espn.go.com/mlb/story/_/id/1...luxury-tax-most-major-league-baseball-history
Dodgers lead MLB with record $43.6 million paid in luxury tax. Followed by Yankees at $26.1 with Boston and SF both less than $2m.

My question even at the lowest tax 17.5 % - $297.9 million, the Dodgers spent, is near 52m. Goes up from 17.5% in consecutive years of over the luxury tax.

So why did LA get off cheap? Or maybe my math is wrong..

Luxury tax payrolls are based on the average annual values of contracts and earned 2015 bonuses, and regular payrolls include 2015 salaries, earned bonuses and prorated shares of signing bonuses.

LAD luxury tax payroll amount was about $271.6 Mil. Although paying $18 Mil of Matt Kemp's 2015 salary, it is not included in the Luxury Tax total.

This is partly the issue with Maybin's salary. DET is liable for his full $8 Mil in 2016 for luxury tax, but will pay just $5.5 Mil in his salary.

The brilliance of Max Scherzer's contract with the Nats has him being paid (deferred) until 2028. The deal shows as 7 years at $210 Mil. For luxury tax purposes, it will be 14 years and the average annual value will be $15 Mil. Yes, the Nats still are paying him the $210 Mil, it is just how it appears for luxury tax.

Hopes this helps.

 

[tomdalton22]

Luxury tax payrolls are based on the average annual values of contracts and earned 2015 bonuses, and regular payrolls include 2015 salaries, earned bonuses and prorated shares of signing bonuses.

LAD luxury tax payroll amount was about $271.6 Mil. Although paying $18 Mil of Matt Kemp's 2015 salary, it is not included in the Luxury Tax total.

This is partly the issue with Maybin's salary. DET is liable for his full $8 Mil in 2016 for luxury tax, but will pay just $5.5 Mil in his salary.

The brilliance of Max Scherzer's contract with the Nats has him being paid (deferred) until 2028. The deal shows as 7 years at $210 Mil. For luxury tax purposes, it will be 14 years and the average annual value will be $15 Mil. Yes, the Nats still are paying him the $210 Mil, it is just how it appears for luxury tax.

Hopes this helps.

so all of Fielder's pay goes towards Texas' luxury tax total?

 

[Mitchrapp]

Luxury tax payrolls are based on the average annual values of contracts and earned 2015 bonuses, and regular payrolls include 2015 salaries, earned bonuses and prorated shares of signing bonuses.

LAD luxury tax payroll amount was about $271.6 Mil. Although paying $18 Mil of Matt Kemp's 2015 salary, it is not included in the Luxury Tax total.

This is partly the issue with Maybin's salary. DET is liable for his full $8 Mil in 2016 for luxury tax, but will pay just $5.5 Mil in his salary.

The brilliance of Max Scherzer's contract with the Nats has him being paid (deferred) until 2028. The deal shows as 7 years at $210 Mil. For luxury tax purposes, it will be 14 years and the average annual value will be $15 Mil. Yes, the Nats still are paying him the $210 Mil, it is just how it appears for luxury tax.

Hopes this helps.

Thanks. Though in the article it said LA's payroll was 291m but "..the luxury tax is based on a different number, 297.9." So I went with that.

 

[Rebbiv]

so all of Fielder's pay goes towards Texas' luxury tax total?

Yes

 

[Rebbiv]

Thanks. Though in the article it said LA's payroll was 291m but "..the luxury tax is based on a different number, 297.9." So I went with that.

That's because half the baseball writers/bloggers have no clue to what they are writing about. It is all about ad monies and driving fans to their webpages. And it isn't just baseball and sports. In general, there are very few "true" journalists and way too many editorial/op ed pieces.