#luxury tax

#luxury tax

The league's best teams often teeter on a knife's edge, thriving thanks to continuity but in a constant state of fragility, which explains the current state of the weakened Eastern Conference. The two favorites, who meet in a made-for-television opener Wednesday in New York, the Cleveland Cavaliers and the Knicks (7 p.m. ET on ESPN), are in this place because of the consistency of their rosters and misfortune of fellow contenders.

On Aug. 25, 2012, the Boston Red Sox and Los Angeles Dodgers completed a nine-player trade that altered the course of both franchises. The Dodgers acquired Josh Beckett, Carl Crawford, Adrián González and Nick Punto in a deal that added over $250 million in salary. Boston received Ivan De Jesus Jr., Rubby De La Rosa, James Loney, Jerry Sands and Allen Webster. More importantly, they finished the 2012 season under the luxury tax threshold and avoided the 40-percent repeater penalty.

The Los Angeles Dodgers have 21 picks during the 2025 MLB Draft, beginning with their first selection at No. 40 overall due to penalties from exceeding luxury tax thresholds.