The Dodgers broke Major League Baseball’s spending record last year with a combined $515 million in payroll and luxury taxes en route to their second consecutive World Series title, according to the final figures compiled by the commissioner’s office, and Los Angeles is projected for the highest total again in 2026.Los Angeles’ 2025 spending included a record total of $514.6 million, with payroll of $345.3 million and taxes of $169.4 million. Despite several contract waivers to reflect deferred payments, the Dodgers’ total was seven times the $68.7 million payroll of the Miami Marlins, the lowest-spending team, and more than the combined payroll of the bottom six clubs. Spending by the Dodgers last year was well above the previous high of $430.4 million by the 2024 New York Mets — and Los Angeles’ total did not include the $6.5 million signing bonus given to pitcher Roky Sasaki as part of a minor league contract.The Mets and Dodgers spent a combined $948.3 million. The ratio of the five highest spenders to the five lowest spenders increased from 3.6 in 2021 to a record-high 4.7 last year.The Dodgers ended the Mets’ three-year streak as the top payroll in 2025, increasing the bonus earned by retired veteran Clayton Kershaw by $8.5 million.Los Angeles’ total would have been approximately $71 million higher, but the use of deferred money for seven players would have resulted in a discount in their payroll calculation. shohei ohtani That’s calculated at $28.2 million because $68 million of his $70 million salary last year is not payable until 2035.The Mets ranked second in payroll with $342.1 million and their total expenses with taxes were $433.7 million.In the first five seasons after owner Steve Cohen purchased the team, the Mets spent $1.44 billion without winning a title: $1.11 billion in payroll and $320 million in taxes.Both the Mets and Dodgers surpassed the previous record-high payroll of $333.3 million set by the 2024 Mets.The Los Angeles Angels are projected to lead the way in 2026 spending with a $323.3 million payroll for their 40-man roster and $163.7 million in taxes for a total of $487.1 million, according to MLB’s opening day data. The Mets started with a record payroll of $358.4 million and have projected taxes of $124.1 million on expenses of $482.5 million.The lowest 40-man opening day salary in Cleveland this year is $75.5 million.Total spending, based on regular payroll, increased 3.1% from $5.16 billion in 2024 to $5.32 billion last year and is up 31.3% from $4.05 billion in 2021 over four seasons under the current labor contract.Those figures do not include the $50 million annual pre-arbitration bonus pool that began in the 2022 collective bargaining agreement or the allocation for benefits, which are included in MLB’s luxury tax payroll.Amid the luxury tax payroll, eight teams began 2026 over the tax threshold by $244 million. The Dodgers ($415.2 million), Mets ($379.2 million) and New York Yankees ($339.6 million) were followed by Toronto ($319.5 million), Philadelphia ($315.2 million), Boston ($263.7 million), San Diego ($260.1 million) and Atlanta ($247.9 million).The Chicago Cubs started at under $25,000 and Detroit at under $2.5 million. Payroll increases and decreases during the season due to trades and roster moves.The Yankees finished 2025 with the third-largest regular payroll at $301.5 million, followed by Philadelphia ($291.9 million), AL champion Toronto ($253.1 million), Houston ($236.4 million) and Texas ($229.9 million).Excluding the Mets, four of the top five spenders reached the playoffs, with teams whose payrolls were ranked ninth, 10th, 12th, 15th, 17th, 22nd, 23rd, and 25th.The Dodgers max out the payroll in 2025 at $74.4 million. Other teams with big increases in 2025 were Detroit ($61.9 million), Baltimore ($60.2 million to $165.6 million), San Diego ($45.6 million to $217.6 million), Philadelphia ($42.8 million) and Toronto ($34.7 million).Fifteen teams cut payroll from 2024 to 2025, led by the Chicago White Sox ($66.1 million to $87.9 million), St. Louis ($39.3 million to $139.1 million), Miami ($29.4 million to $68.8 million) and San Francisco ($28 million to $182.9 million). The Cardinals have reduced their opening day payroll this year to $102.3 million, and that includes about $47.4 million due to trades involving three players no longer with the Cardinals: Nolan Arenado, Sonny Gray and Willson Contreras.The Yankees cut the payroll by $9.4 million from 2024 to 2025 and have increased it to $302.8 million this year.Eleven teams will earn $200 million in 2025, matching the record set in 2023. Five teams were under $100 million, which is one more than the record-low in 2024.Regular payroll for the previous year is based on 2025 salary, earned bonuses and pro rata shares of signing bonuses and non-cash compensation for the 40-man roster. Deferred salaries and bonus payments are discounted to present values, and termination salaries, option purchases and cash transactions between clubs are accounted for.MLB calculated the average salary as of August 31, the last day before active rosters were expanded to 26, as $4,611,595. The Players Association, using a slightly different methodology, arrived at $4,721,393, The luxury tax is based on payroll with average annual values that include benefits and a pre-arbitration bonus pool. The players’ union does not think tax payments should be used in measuring inequality because half of the tax money goes into the commissioner’s discretionary fund, which is distributed among teams eligible to receive revenue-sharing money, thereby increasing their non-media local revenues.
