Move over, Yankees.
The Dodgers will pay more luxury tax on their 2014 payroll than any major league club: $26.6 million, according to the Associated Press.
The Dodgers have had baseball’s highest payroll for more than a year now. Because this is the second straight year in which they have exceeded the luxury tax threshhold, the Dodgers paid a 30 percent tax on every dollar above $189 million. The percentage escalates for each year a team exceeds the luxury tax threshhold, so the Dodgers will pay 40 percent on every dollar above $189 million in 2015.
This year, the Dodgers owe $26,621,125 based on a $277.7 million payroll for purposes of the tax, according to the AP. It’s the first time that any team other than the Yankees will pay the most luxury tax.
A team’s luxury tax is calculated as a percentage of the sum of the average annual value of every major-league contract. For example, the average annual value of Andre Ethier‘s contract is $17 million. His contract calls for him to make $15.5 million this year in actual money. However, for the purposes of calculating luxury tax, MLB counted Ethier’s salary as $17 million.
The Dodgers’ actual 2014 payroll came to $257,283,410 — a major-league record. According to the AP, here is every team’s actual 2014 payroll:
1. Dodgers $257.3
2. Yankees $218.5
3. Phillies $183.5
4. Tigers $173.3
5. Red Sox $168.2
6. Giants $165.1
7. Angels $164.1
8. Rangers $145.7
9. Nationals $141.8
10. Blue Jays $135.4
11. Cardinals $121.0
12. Reds $115.4
13. Braves $114.7
14. Orioles $112.7
15. Brewers $110.3
16. Mariners $109.0
17. Diamondbacks $108.1
18. Rockies $97.8
19. Royals $97.7
20. Cubs $93.2
21. Mets $92.9
22. White Sox $92.5
23. Athletics $91.6
24. Twins $91.1
25. Padres $85.5
26. Indians $83.7
27. Pirates $78.4
28. Rays $77.1
29. Astros $54.7
30. Marlins $52.5