Mets Dominate MLB Payroll for 2024, Yankees Overspend Dodgers Before Luxury Tax
The New York Mets have secured the top spot in Major League Baseball payroll for the third consecutive year with a total of $333 million, while the Yankees exceed the Dodgers' expenditures prior to the luxury tax.
Major League Baseball does not impose a salary cap; however, a luxury tax (also referred to as the competitive balance tax or CBT) exists to deter excessive spending. The commissioner’s office has disclosed the payroll figures and associated luxury tax penalties for the 2024 season.
The total payroll figures encompass the 40-man rosters and account for unexercised option buyouts, bonuses, cash considerations in trades, and other player compensation. Notably, the luxury tax hit on player salaries is determined by the average annual value of contracts. For instance, a player with a three-year, $30 million contract, with payments of $5 million in the first year, $10 million in the second year, and $15 million in the third year, remains a $10 million luxury tax hit throughout all three years.
The Mets have topped the list for the third consecutive year with a payroll of just over $333 million, surpassing their previous record of $319.5 million from 2023. They are followed by the Yankees at $310 million, the reigning World Series champions, the Dodgers, at $271 million, and the Phillies at $249 million. The most significant payroll increase was noted by the Diamondbacks, who raised their budget by $48 million from 2023 to 2024, while the Padres reduced theirs by $85 million.
Ranked lowest was the Oakland Athletics with a payroll exceeding $66 million, which is less than what Mets owner Steve Cohen will pay in luxury tax.
Payroll Rankings for 2024
| Team | 2024 Payroll | CBT Paid |
|---|---|---|
| New York Mets | $333,262,507 | $97,115,609 |
| New York Yankees | $310,916,392 | $62,512,111 |
| Los Angeles Dodgers | $270,841,245 | $103,016,896 |
| Philadelphia Phillies | $249,094,493 | $14,351,954 |
| Houston Astros | $244,875,028 | $6,483,041 |
| Texas Rangers | $240,847,326 | $10,807,106 |
| Atlanta Braves | $233,983,496 | $14,026,496 |
| Chicago Cubs | $229,983,496 | $570,309 |
| Toronto Blue Jays | $218,430,267 | |
| San Francisco Giants | $210,889,334 | $2,421,788 |
| Boston Red Sox | $188,194,381 | |
| Los Angeles Angels | $178,975,716 | |
| St. Louis Cardinals | $178,307,638 | |
| Arizona Diamondbacks | $177,136,401 | |
| San Diego Padres | $171,989,899 | |
| Chicago White Sox | $153,903,789 | |
| Colorado Rockies | $151,284,860 | |
| Seattle Mariners | $145,385,974 | |
| Minnesota Twins | $132,543,419 | |
| Washington Nationals | $130,310,823 | |
| Kansas City Royals | $121,823,972 | |
| Milwaukee Brewers | $120,338,616 | |
| Cleveland Guardians | $109,502,409 | |
| Cincinnati Reds | $106,970,322 | |
| Baltimore Orioles | $105,416,838 | |
| Detroit Tigers | $101,035,919 | |
| Miami Marlins | $98,142,446 | |
| Tampa Bay Rays | $90,342,690 | |
| Pittsburgh Pirates | $87,300,901 | |
| Oakland Athletics | $66,467,058 |
