When you have already spent more than $1 billion to upgrade your roster, spending extra millions to fortify any remaining holes is no big deal.
The Dodgers somehow may not be done spending this winter despite giving Shohei Othani the largest contract in sports history and awarding Yoshinobu Yamamoto the biggest contract ever for a pitcher, per The Athletic.
The financial flexibilty stems from the team being roughly $15 million below the highest luxury tax tier, according to calculations provided by Fangraphs.
“The team still could trade for another starting pitcher to go with Yamamoto, Glasnow, Walker Buehler and Bobby Miller,” The Athletic’s Ken Rosenthal wrote. “They also might attempt to upgrade at shortstop.”
While it may seem the Dodgers have the world’s greatest accountant, the length and years of these contracts have kept the luxury tax hits to reasonable numbers.
Yamamoto, who will earn $325 million over 12 years, is only on the books for $27.1 million each year for luxury tax purposes.
His deal reportedly includes a $50.6 million posting fee to the Orix Buffaloes, Yamamoto’s team in Japan, as well as two opt-outs, and a $50 million signing bonus, according to ESPN.
The Dodgers are spending more than $375 million to sign the 25-year-old ace.
Unlike Ohtani’s contract, though, there is no deferred money in this deal.
Ohtani took massive deferrals to lessen his hit to $46 million per year, which is much more manageable than $70 million per season.
Fangraphs projects the Dodgers luxury tax payroll to be around $282.1 million, and the highest tier for this upcoming season is $297 million.
There is a surcharge for teams that exceed the competitive balance tax, as well as draft picks being pushed back for teams that exceed the tax by at least $40 million.
While the Dodgers could still add, they’re already the overwhelming World Series favorite.
The team has a strong rotation with Yamamoto, recently acquired righty Glasnow and the returning Buehler.
It’s uncertain if longtime Dodgers ace Clayton Kershaw will return for another season.
The Dodgers currently list Miguel Rojas and Chris Taylor as their shortstop options, although former top prospect Gavin Lux is set to return from a torn ACL.
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