Dodgers hit with luxury tax for first time
LA, Yankees are only clubs to exceed $178 million payroll in 2013
LOS ANGELES -- The Dodgers were assessed a luxury tax of more than $11.4 million for a $243 million payroll, according to MLB calculations sent to teams on Tuesday and obtained by the AP.
The Yankees and Dodgers were the only clubs exceeding the $178 million tax threshold in 2013. Tax money is used to fund player benefits and MLB's Industry Growth Fund.
It was the first time the Dodgers have been hit by the tax and came when their payroll nearly doubled from $129 million a year ago. The Dodgers already have $205 million committed to 16 players for 2014, and that doesn't count Clayton Kershaw, who is eligible for arbitration.
The New York Yankees actually paid a higher luxury tax, $28 million, even though their payroll was less than the Dodgers ($234 million). The Yankees paid at a higher rate because they have exceeded the tax threshold at least four consecutive times. This was the first time for the Dodgers.
The average salary in MLB increased 7.1 percent to $3,326,645.