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METS HIT WITH RECORD $101M LUXURY TAX AFTER 4TH-PLACE FINISH

 * Associated Press

Dec 23, 2023, 12:35 PM ET
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NEW YORK -- The New York Mets must pay a record luxury tax of nearly $101
million after a fourth-place finish in their division, among an unprecedented
eight teams that owe the penalty for the 2023 season.

Owner Steve Cohen's Mets finished with a tax payroll of $374.7 million,
according to figures finalized by Major League Baseball on Thursday and obtained
by The Associated Press. That topped the previous high of $291.1 million by the
2015 Los Angeles Dodgers.

The Mets' tax bill came to $100,781,932 after they finished fourth in the NL
East at 75-87 in the most expensive flop in baseball history. That more than
doubled the prior high of $43.6 million by the 2015 Dodgers.


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2 Related

The Mets saved about $18 million for this year with their summer selloff that
saw them trade Max Scherzer, Justin Verlander, David Robertson and Mark Canha.
Their projected tax payroll on June 30 was $384 million, according to MLB, and
that additional $9.3 million in payroll would have resulted in a tax $8.4
million higher.

The final amount owed by the Mets would have been slightly more, but they
benefited from a tax credit of $2,126,471 under a provision in the latest
collective bargaining agreement for an payroll overcharge involving three
players they traded. New York's two-year tax total is $131.6 million.

Other teams owing tax money are San Diego ($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 champion Texas
($1.8 million). The Blue Jays, Braves and Rangers are paying tax for the first
time.

The Yankees and Mets were the only teams to exceed the fourth threshold of $293
million, added in the 2022 labor contract, an initiative dubbed the Cohen Tax
and aimed at reigning in Cohen.

The previous high for taxpayers was six, in 2016 and last year. This year's tax
totaled $209.8 million, more than double the prior record of $78.5 million for
2022.

The Los Angeles Angels finished with a tax payroll $28,654 below the $233
million tax threshold. The Angels were projected at $231.15 million on June 30
and got under by allowing pitchers Lucas Giolito, Matt Moore, Dominic Leone and
Reynaldo López along with outfielder Hunter Renfroe to be claimed off waivers on
Aug. 31.

Texas was projected at $220.2 million on June 30 before boosting its pitching
staff by trading for Scherzer, Aroldis Chapman, Jordan Montgomery and Chris
Stratton and also acquiring catcher Austin Hedges. The Rangers' final payroll
was $242.1 million.

Total spending on luxury tax payrolls rose 12.2% to a $5.79 billion from $5.16
million last year, the previous high.

The Yankees have been taxed just under $390 million since the penalties began in
2003, 43% of the $901 million total, followed by the Dodgers at $234 million.
Fourteen of 30 teams have owed tax over the two decades.

Tax payrolls are calculated by average annual values, including earned bonuses,
for players on 40-man rosters along with just over $17.1 million per team for
benefits and $1.67 million for each club's share of the $50 million pool for
prearbitration players that started in 2022. Deferred salaries and bonus
payments are discounted to present-day values.

MLB has not finalized regular payrolls, which are based on 2023 salaries and
earned bonus plus prorated shares of signing bonuses.

Because they owe tax for the third straight year, the Padres and Dodgers pay at
a 50% rate on the first $20 million above the $233 million threshold, a 62% rate
on the next $20 million and a 95% rate on the amount from $273 million to $293
million.



The Mets, Yankees and Phillies owe tax for the second year in a row and pay 30%
on the first $20 million over, 42% on the next $20 million, 75% on the third $20
million and 90% on the amount over $293 million.

The first $3.5 million of tax money is used to fund player benefits and 50% of
the remainder will be used to fund player Individual Retirement Accounts. The
other 50% of what's left goes to a supplemental commissioner's discretionary
fund intended to be given to teams receiving revenue-sharing money that have
grown their non-media local revenue over several years.

Next year's initial threshold is $237 million. If the Mets, Yankees, Dodgers,
Padres or Phillies go over, they would pay at the highest tax rate, rising to
110% for the amount over $297 million.

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cookies, but some parts of the site will not then work.

SELLING, SHARING, TARGETED ADVERTISING

Selling, Sharing, Targeted Advertising

We may use personal information to support “targeted advertising,” “selling,” or
“sharing,” as defined by applicable privacy laws, which may result in third
parties receiving your personal information. You or your legally authorized
agent can move the toggle above to the left to opt out of these activities on
this digital property consistent with applicable law. Please note that, because
these activities are based on online cookies, your opt-out choice is specific to
this property. If you access other digital properties of the Walt Disney Family
of Companies, you will need to make your election for each. Also, if you clear
your cookies on this browser or use another browser or device, you may need to
opt out again on this property.

In addition to the above toggle, you may choose to provide the information
requested in this opt-out form, which may enable us to take action on your
opt-out election more broadly than just on this digital property.

You may also choose to enable online, where available, a universal tool that
automatically communicates your opt-out preferences, such as the Global Privacy
Control (“GPC”). We will process the GPC signal as a request to opt out.

If you opt out, you may continue to see advertising, including ads that may be
based on personal information processed before you opted out.

You also may have rights to opt out from certain third parties selling and
sharing your personal information. You will need to separately exercise your
opt-out rights with regard to each, which you may do through this IAB opt-out
list. You may also wish to use other available online tools to limit various
types of interest-based advertising or tracking. To learn more, visit "Do Not
Sell or Share My Personal Information" and "Targeted Advertising" Opt-Out
Rights.

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