The Los Angeles Dodgers are set to have the highest payroll in Major League Baseball (MLB) for 2024, according to projections based on the Competitive Balance Tax (CBT). Following the signing of free-agent pitcher James Paxton, the Dodgers are expected to surpass the New York Mets in total payroll obligations. Reports indicate that Paxton's contract includes an $11 million salary, a $1 million Opening Day roster bonus, and potential additional incentives totaling up to $12 million. This brings the Dodgers’ estimated tax payroll to approximately $302.8 million, making it the highest among all MLB teams.https://www.facebook.com/profile.php?id=61574475442716
Despite spending over $1 billion during the offseason, the Dodgers have structured many of their contracts with significant deferrals, reducing their present-day financial commitments. A prime example is Shohei Ohtani’s record-breaking $700 million deal, which defers $68 million annually, effectively lowering its present value to around $437 million. Similar deferred payment structures are in place for key players like Mookie Betts and Freddie Freeman. Due to these deferrals, while the Dodgers’ actual payroll ranks sixth in MLB, their CBT-adjusted payroll places them at the top.
As of now, the projected top payrolls for 2024, according to available estimates, are:
Los Angeles Dodgers – $302.8 million
New York Yankees – $302 million
New York Mets – $284 million
Houston Astros – $247 million
Philadelphia Phillies – $238 million
Atlanta Braves – $231 million
Texas Rangers – $220 million
Toronto Blue Jays – $199 million
Chicago Cubs – $196 million
Boston Red Sox – $180 million
In MLB, the CBT acts as a luxury tax, imposing financial penalties on teams exceeding a set payroll threshold. The tax is calculated based on the average annual value (AAV) of contracts rather than actual salaries, with final calculations completed at the season’s end.
How James Paxton Impacts the Dodgers' Rotation
While Paxton’s $12 million contract is modest compared to some of his teammates, his addition to the pitching staff could have a significant influence. If he can stay healthy and provide stability, the Dodgers might deploy a six-man rotation. This would consist of Paxton alongside Yoshinobu Yamamoto, Tyler Glasnow, Bobby Miller, and Walker Buehler. If the team opts for another starter, they could consider emerging talent Emmet Sheehan or a returning Clayton Kershaw.
A six-man rotation could be especially beneficial for Yamamoto, who had extra rest between starts in Japan’s Nippon Professional Baseball (NPB) league. Additionally, it could help preserve Paxton, who has dealt with injury concerns throughout his career.
Overall, while the Dodgers' financial strategy has drawn attention, their on-field approach—particularly in managing pitching depth—will be a key factor in their 2024 success.
