Mets Hit with Record Luxury Tax Amid Fourth-Place Finish
2 min read
The New York Mets have been hit with a record luxury tax of nearly $101 million after finishing in fourth place in their division. This penalty comes as part of the unprecedented eight teams that owe the luxury tax for the 2023 season. The Mets’ tax payroll reached $374.7 million, surpassing the previous high of $291.1 million set by the 2015 Los Angeles Dodgers.
The Mets’ luxury tax bill of $100,781,932 is more than double the previous high of $43.6 million set by the 2015 Dodgers. This penalty comes after the Mets finished fourth in the NL East with a record of 75-87. This marks the most expensive flop in baseball history.
Despite the high tax bill, the Mets managed to save about $18 million through their summer selloff, which involved trading Max Scherzer, Justin Verlander, David Robertson, and Mark Canha. This move helped reduce their projected tax payroll on June 30, which was initially estimated at $384 million.
The Mets’ luxury tax payment is not the only one, as eight other teams also owe the penalty for the 2023 season. These teams include the San Diego Padres ($39.7 million), the New York Yankees ($32.4 million), the Dodgers ($19.4 million), Philadelphia ($6.98 million), Toronto ($5.5 million), Atlanta ($3.2 million), and World Series champions Texas ($1.8 million). The Blue Jays, Braves, and Rangers are paying the luxury tax for the first time.
The Yankees and Mets are the only teams to exceed the fourth threshold of $293 million, which was added in the 2022 labor contract. This threshold, dubbed the “Cohen Tax,” aims to reign in owner Steve Cohen.
The total spending on luxury tax payrolls has risen by 12.2% to $5.79 billion, surpassing the previous high of $5.16 billion set in 2022. The Los Angeles Angels managed to stay under the $233 million tax threshold by allowing pitchers Lucas Giolito, Matt Moore, Dominic Leone, and Reynaldo López, as well as outfielder Hunter Renfroe, to be claimed off waivers on August 31.
The Texas Rangers also managed to stay under the tax threshold by acquiring pitchers Aroldis Chapman, Jordan Montgomery, Chris Stratton, and catcher Austin Hedges. The Rangers’ final payroll reached $242.1 million, up from a projected $220.2 million on June 30.
Overall, the luxury tax penalties have increased significantly, with the total tax amount more than doubling from the previous record of $78.5 million. This highlights the growing financial pressures on teams in Major League Baseball.
