The Dodgers spent well over a billion last offseason and it paid off. Los Angeles won the eighth title in franchise history, and the Dodgers’ handiwork last winter played a vital role in their success. However, one interesting element of that spending is that while the Dodgers spent more last offseason than any other team in history, it didn’t actually change their payroll much.
Looking at the Raw Payrolls
First, let’s take a look at the payrolls of the last 17 champions, beginning in 2008:
| Year | Team | Previous Year Payroll | WS Season Payroll | Percent Payroll Change | Payroll Change |
|---|---|---|---|---|---|
| 2008 | PHI | $89,428,213.00 | $98,269,880.00 | 9.89% | $8,841,667.00 |
| 2009 | NYY | $209,081,577.00 | $201,449,189.00 | -3.65% | -$7,632,388.00 |
| 2010 | SFG | $82,616,450.00 | $97,828,833.00 | 18.41% | $15,212,383.00 |
| 2011 | STL | $93,540,753.00 | $105,433,572.00 | 12.71% | $11,892,819.00 |
| 2012 | SFG | $125,242,452.00 | $137,043,205.00 | 9.42% | $11,800,753.00 |
| 2013 | BOS | $173,216,551.00 | $174,734,264.00 | 0.88% | $1,517,713.00 |
| 2014 | SFG | $140,280,186.00 | $160,336,782.00 | 14.30% | $20,056,596.00 |
| 2015 | KC | $98,558,300.00 | $126,529,835.00 | 28.38% | $27,971,535.00 |
| 2016 | CHC | $132,993,810.00 | $184,352,494.00 | 38.62% | $51,358,684.00 |
| 2017 | HOU | $99,828,742.00 | $138,344,211.00 | 38.58% | $38,515,469.00 |
| 2018 | BOS | $209,872,508.00 | $227,398,860.00 | 8.35% | $17,526,352.00 |
| 2019 | WAS | $181,382,609.00 | $172,307,808.00 | -5.00% | -$9,074,801.00 |
| 2020 | LAD | $207,000,814.00 | $124,917,397.00 | -39.65% | -$82,083,417.00 |
| 2021 | ATL | $63,561,931.00 | $152,753,755.00 | 140.32% | $89,191,824.00 |
| 2022 | HOU | $194,222,042.00 | $183,791,796.00 | -5.37% | -$10,430,246.00 |
| 2023 | TEX | $150,037,446.00 | $251,332,754.00 | 67.51% | $101,295,308.00 |
| 2024 | LAD | $240,278,296.00 | $241,010,117.00 | 0.30% | $731,821.00 |
A few things stands out from this card, aside from the blatantly obvious percent changes in 2020 and 2021, precipated by the shortened 2020 campaign. Arguably the biggest is that Dodgers’ 2024 payroll only shifted up 0.30%, compared to 2023. That’s the power of Shohei Ohtani‘s deal.
Ohtani made $2MM in 2024, as all but $20MM of his $700M is deferred from 2034-43. It allowed the Dodgers to spend big elsewhere. Los Angeles was able to add Teoscar Hernandez and Yoshinobu Yamamoto, plus trade and extend Tyler Glasnow.
Couple that with salaries that came off the books after 2023 — J.D. Martinez and David Peralta among them — and one will see the Dodgers didn’t shatter the books in the short-term to win a title. Their luxury tax did explode, which we’ll get into in a second.
But, let’s take a look at the broader perspective. From 2008-24 (not counting 2020-21), all but three teams saw their payrolls jump.
Among the teams that saw their payroll jump were the 2023 Texas Rangers.
Texas went big-fish hunting in the 2021-22 offseason, as the Rangers locked up Marcus Semien and Corey Seager to massive deals before the lockout. The Rangers doubled-down on that strategy the following offseason. Texas added Jacob deGrom, Andrew Heaney, and Nathan Eovaldi, and swung midseason deals for Max Scherzer and Jordan Montgomery.
The 2023 Rangers, in fact, had a higher adjusted payroll during their championship campaign than the 2024 Dodgers.
The similarities between the two teams don’t stop there. As noted in our Fall Classic recap, the Dodgers only had five homegrown players on their World Series roster. The 2023 Rangers? Texas only used five homegrown players in the Fall Classic, or six if Martin Perez — who bounced around the Majors but originally developed by Texas — is counted.
Everyone else was acquired through trades or free agency.
Now, that doesn’t mean championship teams are strictly built through those avenues. The Giants of the 2010s are proof of that. San Francisco ammassed several great pitchers in Matt Cain, Tim Lincecum, and Madison Bumgarner, paired with homegrown star Buster Posey. Even the 2009 Yankees had Derek Jeter, Mariano Rivera, and Jorge Posada.
However, having money to spend in free agency helps.
One last thing on these numbers. There are some reporting differences between The Baseball Cube and Spotrac, with regards to how each states player payroll in the overlapping years. An example is 2018. The Baseball Cube lists the Red Sox’s payroll as $235,649,368. Spotrac‘s adjusted payroll for that campaign is $227,398,860.
For consistency purposes, we’re using Spotrac data for numbers after 2011.
The Luxury Tax
Now, let’s take a look at the number that truly matters: the luxury tax hit. Here’s a look at the luxury tax hits from the World Series champions, dating back to 2013:
| Year | Team | Previous Year Tax Payroll | WS Season Tax Payroll | Tax Change | Percent Change |
|---|---|---|---|---|---|
| 2013 | BOS | $177,952,823.00 | $177,774,334.00 | -$178,489.00 | -0.10% |
| 2014 | SFG | $168,567,271.00 | $179,834,439.00 | $11,267,168.00 | 6.68% |
| 2015 | KC | $111,012,307.00 | $152,148,299.00 | $41,135,992.00 | 37.06% |
| 2016 | CHC | $154,907,624.00 | $205,917,980.00 | $51,010,356.00 | 32.93% |
| 2017 | HOU | $124,363,133.00 | $140,475,350.00 | $16,112,217.00 | 12.96% |
| 2018 | BOS | $191,888,422.00 | $239,481,745.00 | $47,593,323.00 | 24.80% |
| 2019 | WAS | $204,953,656.00 | $201,151,337.00 | -$3,802,319.00 | -1.86% |
| 2020 | LAD | $204,918,530.00 | $204,653,651.00 | -$264,879.00 | -0.13% |
| 2021 | ATL | $181,047,297.00 | $172,620,704.00 | -$8,426,593.00 | -4.65% |
| 2022 | HOU | $206,641,209.00 | $210,686,230.00 | $4,045,021.00 | 1.96% |
| 2023 | TEX | $160,505,146.00 | $242,135,712.00 | $81,630,566.00 | 50.86% |
| 2024 | LAD | $268,198,867.00 | $339,826,880.00 | $71,628,013.00 | 26.71% |
Again, this table looks a lot like how one would expect it to. Teams increase payrolls, and in turn, the luxury tax, to either keep or sign new talent to win.
There are some interesting numbers. One, the Dodgers escaped the short-term cost of paying Ohtani but not the luxury tax. The Dodgers saw their figure jump 26.71% compared to 2023. It’s an astounding figure given the Dodgers were offenders of the tax threshold before the year.
One other interesting takeaway from this list is the 2017 Astros. Houston added 38.58% in salary en route to their first title in 2017. However, it resulted in just a 12.96% luxury tax increase.
It’s important to note that the luxury tax takes into account not just average annual values but also retained money. Houston had significant retained money in 2016, for the likes of Scott Feldman and Carlos Gomez, on the books.
Aside from the 2024 Dodgers, three teams (2023 Rangers, 2018 Red Sox, 2016 Cubs) listed above went past the luxury tax threshold.
The Signing That Defined Recent Champions
The 2024 Dodgers, nor the 2023 Rangers, were the only recent champions to win big in the offseason and then win the next year.
Perhaps the best example of that before 2023 and 2024 was the 2009 Yankees. It’s odd to say that, especially when looking back at the numbers. The 2008 Yankees had a higher base payroll than the 2009 squad. But, the Yankees saw a lot of veterans leave the team after 2008.
Kyle Farnsworth ($5,916,666), Mike Mussina ($11M), Bobby Abreu ($16MM), and Jason Giambi ($23,428,571) were among the veterans who exited The Bronx after that year. In turn, the Yankees added AJ Burnett, CC Sabathia, and Mark Teixeira, and replaced the other losses with young, controllable players like Alfredo Aceves, Joba Chamberlain, and Phil Hughes.
Four years later, Boston acheived a (somewhat) similar overhaul. The Red Sox traded Adrian Gonzalez, Josh Beckett, and Carl Crawford during the 2012 season in a wild deal that saw Boston shed around a quarter-of-a-million in salaries amidst a disappointing year. The Red Sox remained aggressive, as Boston signed Shane Victorino and Mike Napoli, and traded for Jake Peavy mid-season.
Then, there was the signing that didn’t happen that defined a team. The Nationals didn’t re-sign Bryce Harper in 2018, and wound up winning the whole thing without him in 2019.