MLB Luxury Tax Penalties Reach Record $311.3M in 2024 Between Dodgers, Mets, More
December 20, 2024
MLB teams broke records for luxury tax penalties accrued in 2024.
According to USA Today's Bob Nightengale, nine squads were penalized a total of $311.305 million for exceeding luxury tax thresholds throughout the year. The Los Angeles Dodgers accounted for $103.016 million of the combined penalties, while the New York Mets and New York Yankees rounded out the top three.
Bob Nightengale @BNightengaleThere's an MLB record $311.305 million in luxury tax penalties this year, more than $100 million more than a year ago, by nine teams that eclipsed the luxury tax.<br>Dodgers: $103.016M<br>Mets: $97.116M<br>Yankees: $62.512M<br>Phillies: $14.351M<br>Atlanta: $14.026M<br>Rangers:$10.807M<br>Astros:…
The trio of organizations also represented the only teams to have payrolls exceeding $300 million in 2024.
The Dodgers, Mets, Yankees and Philadelphia Phillies were taxed at a base rate of 50 percent after staying over the tax for at least three straight years (h/t ESPN's Jesse Rogers).
Los Angeles' luxury tax spending paid off, defeating the Bronx Bombers in five games to win the 2024 World Series. While the Yankees didn't emerge victorious in the Fall Classic, they secured their first American League pennant since 2009.
The Mets provided a challenge to the Dodgers in their National League Championship Series clash before ultimately falling in six games.
Of the nine MLB organizations with Competitive Balance Tax payrolls higher than $237 million, the San Francisco Giants and Texas Rangers were the only teams that ended the year with a losing record. The Giants finished 80-82, while the Rangers struggled with injuries during their World Series defense and sat at 78-84 by the end of the season.
Luxury tax penalties haven't dissuaded the top teams from staying active in free agency.
The Mets handed star outfielder Juan Soto a record-breaking 15-year contract worth $765 million. The Yankees have remained active after losing Soto, signing starter Max Fried to an eight-year, $218 million deal.
Los Angeles hasn't been satisfied after winning a championship, inking star lefty Blake Snell to a five-year contract worth $182 million.
After making history in 2024, total luxury tax payments could continue to climb in 2025.