Dodgers Shatter Records 2025 Payroll Set to Soar Over $350 Million
The Los Angeles Dodgers are gearing up for another dominant season, and their payroll for 2025 is already setting new records. After the signing of Teoscar Hernández and Hyeseong Kim, trading Gavin Lux, and resolving all but one salary arbitration case, the Dodgers now have 23 players officially under contract for the upcoming season. Let’s break down what this means for the team’s financial outlook in 2025.
Teoscar Hernández’s Mega Deal and Payroll Impact
Teoscar Hernández’s contract, worth $66 million, adds significant financial muscle to the Dodgers. The deal guarantees three seasons, with a club option for 2028. Like recent Dodgers signings such as pitcher Blake Snell and infielder Tommy Edman, Hernández’s contract features a $23 million signing bonus and $23.5 million in deferred salary, which reduces the average annual value to $19.4 million for competitive balance tax (CBT) purposes. This signing showcases the Dodgers’ strategy of long-term commitment with flexibility.
Hyeseong Kim’s Affordable Addition
In a more cost-effective move, the Dodgers also inked Hyeseong Kim to a three-year deal valued at $12.5 million, averaging $4.17 million annually. Kim’s contract reflects the team’s ability to secure valuable assets while managing payroll costs. This signing ensures depth on the roster without significantly inflating the Dodgers’ already massive payroll.
Payroll Breakdown: Record-Breaking Numbers
With these new signings, the 2025 Dodgers payroll is already surging to $350.6 million, an amount that approaches their 2024 total payroll of $353 million, a franchise record. Here’s a glimpse at how the payroll is shaping up:
- Shohei Ohtani: $46.1 million (2nd year of 10-year deal)
- Blake Snell: $64.8 million (1st year of 5-year deal)
- Mookie Betts: $25.6 million (5th year of 12-year deal)
- Freddie Freeman: $24.7 million (4th year of 6-year deal)
- Teoscar Hernández: $19.4 million (1st year of 3-year deal)
- Blake Treinen: $11 million (1st year of 2-year deal)
This roster is packed with stars, and their contracts are adding to a growing luxury tax burden. It’s evident that the Dodgers are making aggressive moves to stay atop the MLB.
The Rising Luxury Tax Burden
While the Dodgers have assembled a powerhouse team, they are also on the hook for luxury taxes. For 2025, the Dodgers’ competitive balance tax (CBT) payroll is projected to hit a staggering $350.6 million, already surpassing the first threshold of $241 million. This will trigger a luxury tax of $96 million—a massive financial commitment. If the Dodgers continue to make roster moves and add more high-salary players, the tax rate will rise to 110%.
The Future: More Spending and Kershaw’s Return
The 2025 payroll is likely to climb further as the Dodgers are not finished making moves. The eventual return of Clayton Kershaw for his 18th season could add another layer of spending. With this continued aggressive approach, the Dodgers are on track to set another team-record payroll and luxury tax, pushing their financial boundaries like never before.
Conclusion: Dodgers’ Financial Domination in 2025
The 2025 Dodgers are locking in talent at every level, but at what cost? With a projected payroll of $350 million and an astronomical luxury tax bill, the team is clearly going all-in for a World Series title. As they continue to bolster their roster, expect the Dodgers to set even more financial records. Can they maintain this financial juggernaut and justify the huge payroll? Time will tell, but the Dodgers are clearly positioned for another historic season.
