Dodgers Would Have to Pay 110 Percent Tax Penalty to Sign Free Agent Outfielder Kyle Tucker

""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 wrote. "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, so their penalty for signing Tucker or any of the other remaining free agents would be 110 percent. At a $40 million AAV, Tucker would cost them $84 million. At a $35 million AAV, the number would be a mere $73.5 million.""

""The Dodgers don't seem to mind paying more than double the price for big name free agents because the front office already snagged baseball's best closer. The Dodgers signed closer Edwin Diaz to a three-year, $69 million deal. Diaz, who is set to earn $21.1 million per year after deferrals, will actually cost the Dodgers a total of $44.3 million annually. Therefore, it appears the defending champions won't let the 110 percent penalty price deter the organization from improving over the winter.""

""All I have to say to you is, we'll be back next year," Walter said during the Dodgers' World Series celebration at Dodger Stadium."

Teams that exceed the base luxury-tax threshold for three or more consecutive years incur a 50 percent penalty on every dollar above the threshold. Teams that exceed the base threshold by $60 million or more face an additional 60 percent surcharge. The Los Angeles Dodgers meet both criteria, producing a 110 percent tax on incremental payroll. A $40 million AAV signing would effectively cost $84 million, while a $35 million AAV would cost $73.5 million. The Dodgers signed Edwin Diaz to a three-year, $69 million deal; deferrals make his annual payroll charge about $44.3 million. Ownership remains committed to returning in 2026.

Read at Dodgers Nation