luxury tax

But in the past two offseasons, the Dodgers have spared almost no expense, this year becoming the first team in MLB history to boast a $400 million luxury tax payroll.

There have been moments when the team has shown financial constraint, most notably when it strategically stayed under the luxury tax in 2018 and 2019 — to the chagrin of some fans at the time.

The massive deferral lowers the team’s luxury tax commitment and penalties in addition to simply decreasing payroll.

Yates’ signing itself, after all, represented one of their most luxurious splurges — likely to effectively cost more than double its $13 million price tag when accounting for luxury tax penalties and the Dodgers’ need to cut former reliever Ryan Brasier and his $4-million salary in a corresponding move.

The Dodgers are trying not to squander a roster that boasts a nearly $400 million payroll, the highest in history for luxury tax purposes, and was bolstered by yet another big-money offseason from an Andrew Friedman-led front office and Guggenheim-funded ownership group.