Dodgers Set Spending Record En Route to Back-to-Back World Series Titles
LOS ANGELES - There’s no official price tag for a World Series trophy, but the Los Angeles Dodgers just gave us a pretty good estimate. With Major League Baseball releasing its final payroll and luxury tax figures for the 2025 season, the Dodgers' all-in approach to winning has come with a record-setting bill - and another ring to show for it.
Let’s break it down: The competitive balance tax (CBT) threshold for 2025 was set at a record-high $241 million. That’s the line teams try not to cross if they want to avoid luxury tax penalties.
The Dodgers didn’t just cross it - they flew past it. Their final payroll came in at $417.3 million, triggering some of the steepest penalties in league history.
Because this is the fifth straight year the Dodgers have gone over the CBT limit, they faced increasingly harsh surcharges. Here’s how the penalties stacked up:
- 50% tax on the first $20 million over the threshold
- 62% on the next $20 million
- 95% on the amount from $281 million to $301 million
- And a staggering 110% tax on anything above that
Add it all up, and the Dodgers ended up paying nearly $170 million in luxury tax alone, according to figures reported by Ronald Blum of the Associated Press. That pushes their total payroll cost - including taxes - to $586.7 million for the 2025 championship season.
To put that in perspective, the Dodgers spent $456 million during their 2024 title run. That’s $1.04 billion over two seasons - and two championships. No team in MLB history has ever spent more to win.
This kind of spending isn’t new for L.A. Since Guggenheim Baseball Management took over ownership in 2012, the Dodgers have exceeded the luxury tax threshold ten times. But the stakes - and the price tags - have never been higher than they are now.
And they weren’t alone in paying the price for chasing contention. Eight other teams also paid the luxury tax for the second year in a row, tying the league record for most taxed teams in a single season.
That group includes the Mets, Yankees, Phillies, Blue Jays, Padres, Red Sox, Astros, and Rangers. But among them, no one came close to the Dodgers’ tax bill - the next-highest payment didn’t even crack $92 million.
The Dodgers’ aggressive spending strategy has always been about more than just writing checks. It’s about building a roster that can win now - and keep winning. And while critics may point to the cost, the results speak for themselves: two titles in two years, a loaded roster, and a fanbase that’s celebrating another championship December.
In a league where financial discipline is often praised, the Dodgers are showing what happens when a team pushes every chip into the middle of the table - and hits the jackpot.