The filthy-rich Dodgers
Is Alabama poised to spring the upset? So long local coverage!
Good morning, all! I hope your weekend before Christmas is going well!
Yes! They are the filthy-rich Dodgers; the two-time defending champion filthy-rich Dodgers. To put it in perspective, the best team money can buy will owe a record competitive balance tax of $169.4M this year, higher than the payrolls of 16 MLB clubs. Or to put it another way, the Dodgers CBT is more than double the payrolls of the Miami Marlins, the don’t-call-them Sacramento Athletics, the Chicago White Sox and the Pittsburgh Pirates.
For the uninitiated, the CBT is the amount a team pays to the league, if it exceeds the payroll threshold. That figure changes each season, but in 2025 it was $241M. Any figure above that is taxed and the Dodgers were taxed heavily. Interestingly, they would have had to fork over more, but they have learned to game the system by signing most of their high profile free agents to deferred contracts. As an example, arguably the game’s best player, Shohei Ohtani, who signed a 10-year, $700M contract, “only” gets paid $2M per season. The rest of the $680M the Dodgers owe him, will not kick in until 2034. Then he will be paid $68M per year through 2043.
Yes, that $68M will be counted toward the Dodgers payroll, starting in 2034, but they are gambling the threshold will be higher at that point, plus the money will keep rolling in with repeat championships, so that they will not feel the hurt, when their CBT climbs. That is, by the way, if there still is a CBT. We keep hearing owners want a hard salary cap.
For the record, nine clubs will have to pay a CBT this year and the Dodgers are not doing anything wrong. The best team money can buy is playing by the rules; sort of. I still stay allowing the deferral on many of these contracts is wrong.
Where does the money go? Good question. Small-market clubs will share some of the bounty, and some of the loot will go towards the players pension and health funds. But make no mistake, unlike the NFL, NBA or NHL, the success of a MLB club tilts toward the money teams. Sure, the occasional small-market club will win a title or make a serious run, and a big money club might be a flop. See the 2025 New York Mets. But the teams with money are usually the most successful. Just ask the Dodgers. Make that the filthy-rich Dodgers.
Here are some other thoughts, as the Patriots try to pass a test they failed last week:
I could be wrong but Alabama’s comeback win over Oklahoma Friday night, has set the stage for an exciting Rose Bowl vs. #1 Indiana in the CFP. In the words of the late, great Keith Jackson, this could be one of those “Whoa, Nellie” games.
Free agent pitcher Michael King is returning to the San Diego Padres on a three-year deal with opt-outs each year. Do not be surprised if many of these remaining high-profile free agents seek similar deals. Such an arrangement gives a player some insurance, in the event there is a work stoppage after the 2026 season.
One of my favorite King stories was when he was still a Yankee. King was in charge of cooking Thanksgiving Day dinner for his family one year. When the YES Network’s Meredith Marakovits asked King about what the pressure was like pitching in front of 40,000 fans at Yankee Stadium, King had a great response. “Pressure? That’s not pressure. Pressure is being in charge of preparing Thanksgiving Day dinner for 20 people.”
In our ever changing media world, station-owners are continuing to cut expenses. Does that mean saying good-by to your favorite local sportscaster or meteorologist? Perhaps. Most local TV newscasts have already gutted their local sports coverage and now weather could be on the chopping block. Tegna, which owns several local TV outlets across the country, plans to merge its weather coverage by have national meteorologists provide the local forecast on the stations they own. The plan is to have these meteorologists break in to a station’s programming, for weather-emergency announcements, or serve as a substitute, if the local weather forecaster is out for the day. But do not kid yourself. At some point a handful of national meteorologists will be giving the local forecast, rotating among the Tegna stations, regularly. And those local meteorologists at each station? They will be seeking other work. The times, they are a changin,’
The Cleveland Browns, Detroit Lions, Jacksonville Jaguars and Houston Texans have never been to a Super Bowl. The Browns will be going home after Week 18 again this season, but the other three still have a shot, especially the Texans. Enjoy today’s games.
That is going to do it for today’s newsletter. As always, thank you for reading and subscribing. Have a splendid Sunday!
DAN
Just a note. There will be no newsletter on Monday, as I take a brief respite. The newsletter will return on Tuesday.