The Los Angeles Dodgers have been linked to some of the biggest free-agent names on the market, including star outfielder Kyle Tucker and star infielder Bo Bichette.
However, in order to land either of these players, the World Series champions face a hefty luxury tax penalty when signing free agents.
**Luxury Tax Penalties Explained**
The Athletic’s Ken Rosenthal and Will Sammon detailed why the Dodgers will have to pay a significant amount of money for any high-profile signing.
“Any team that exceeds the base luxury-tax threshold for three or more consecutive years pays a 50 percent penalty for every dollar it goes above,” Rosenthal and Sammon explained.
“Any team that exceeds the base threshold by $60 million or more pays an additional 60 percent surcharge.”
The Los Angeles Dodgers qualify on both counts, meaning their penalty for signing Tucker or any other major free agent would amount to 110 percent. For example:
– At a $40 million average annual value (AAV), Tucker would effectively cost the Dodgers $84 million.
– At a $35 million AAV, the cost would still be a hefty $73.5 million.
**Dodgers’ Previous Luxury Tax Experience**
The Dodgers have already felt the impact of such tax penalties with their signing of baseball’s top closer, Edwin Diaz. The defending champions signed Diaz to a three-year, $69 million deal. While the reliever’s annual average value (after deferrals) is $21.1 million, the Dodgers are actually set to pay $44.3 million per year when factoring in tax penalties.
**Free Agent Market Outlook**
Currently, the Dodgers are not considered the favorites to land Kyle Tucker, who remains a prized target for the Toronto Blue Jays. However, if the Blue Jays fall out of the race, Tucker could very well come into the Dodgers’ sights.
As for Bo Bichette, signing the 27-year-old infielder would make a lot of sense for Los Angeles. Yet, it remains unclear whether the Dodgers will actually strike a deal with Bichette.
Despite the massive luxury tax payments, the Dodgers don’t seem deterred by these financial burdens. Their willingness to absorb hefty penalties, as seen with the Diaz signing, indicates that money is no longer a major obstacle for the organization.
**What’s Next?**
With free agency heating up, it will be interesting to see if the Dodgers continue pursuing these stars despite the luxury tax consequences.
Stay tuned for more updates on the Blue Jays and Dodgers as the free-agent market unfolds.
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**Related News:**
– Blue Jays Aren’t Desperate to Sign Bo Bichette, Says MLB Insider
– Blue Jays Rumors Heat Up as Kyle Tucker, George Springer Attend Golf Event
– Blue Jays’ Latest Signing Could Open Door For Dodgers Landing Bo Bichette
– Blue Jays Signing Bo Bichette Appears ‘Increasingly Unlikely,’ Per Insider
https://www.newsweek.com/sports/mlb/dodgers-face-hefty-punishment-to-sign-kyle-tucker-bo-bichette-11324789
