Los Angeles Dodgers Paid More Than $100 Million in Historic Tax Penalties in 2024

The Dodgers won the World Series, but it came at a massive cost.

L. A. Dodgers designated hitter Shohei Ohtani (17) slides into third base against Detroit Tigers third base Matt Vierling (8) during the first inning at Comerica Park in Detroit on Saturday, July 13, 2024. / Junfu Han / USA TODAY NETWORK via Imagn Images

The Los Angeles Dodgers won the World Series in 2024, but it came at a massive cost.

According to the Associated Press, the Dodgers paid a $103 million tax penalty for going over the $237 million competitive balance tax threshold. They were one of nine teams to get hit with CBT penalties, but they did have the most severe overage. The $103 million is the largest penalty in baseball history.

The Associated Press had the information:

The Los Angeles Dodgers topped a record nine teams owing Major League Baseball’s luxury tax this year with an unprecedented $103 million penalty, and the $97.1 million bill for the New York Mets raises their tax total under high-spending owner Steve Cohen to nearly $229 million.

The Dodgers have several high-priced contracts on the roster, including Shohei Ohtani, Mookie Betts, Freddie Freeman and Yoshinobu Yamamoto. They also aren't afraid to spend in the mid-tier on guys like Max Muncy, Toescar Hernandez, Will Smith and Clayton Kershaw.

Los Angeles has continued their spending again this offseason, already signing Blake Snell to a five-year, $182 million deal. They are also still in the running for Hernandez, who is projected to get between $60 and $80 million this time through free agency.

The Dodgers still remain the favorites in 2025, but the National League is getting more loaded as the Mets, Braves and Phillies lurk. Dark horse teams like the Reds and Diamondbacks are also looking to take the next steps.

The Dodgers beat the Yankees in five games during this year's Fall Classic.