The Los Angeles Dodgers have done it again. They’ve followed up a title by grabbing up some of the best free agents available. After signing Edwin Diaz a few weeks ago, the Dodgers didn’t stop their mad spending spree. They just landed Kyle Tucker, arguably the biggest free agent in this class. Their spending seems to know no bounds.
Los Angeles Dodgers sign Kyle Tucker
After a lengthy foray into free agency, it seemed like Kyle Tucker was going to sign with the Los Angeles Dodgers, New York Mets, or Toronto Blue Jays. Those three teams had pulled away from the pack and had offers out to the star outfielder.
The Dodgers always seem to find themselves in these situations, despite not always getting the player. They were in on Juan Soto even though signing him last offseason would’ve been a huge shock. It is a bit shocking that they pulled the trigger on Tucker and managed to sign him.
They gave him four years and $240 million. There are opt-outs after the second and third years, a rarity for the Dodgers. However, that seems to be what drove Tucker to sign with them instead of Toronto or New York. He can opt out and sign a bigger, longer deal in a couple of seasons or let it ride.
As is often the case with the Dodgers, there is deferred money. However, only $30 million of it is deferred. This isn’t quite a Shohei Ohtani case where almost all of the money is deferred. That may be the biggest reason they can keep shelling out massive contracts right now.
The actual cost
Tucker’s AAV, after the deferrals and signing bonuses, is about $57 million, making it the second-highest in baseball. Ohtani, while mostly deferred, is on a $70 million a year deal, and Soto is making $51 million.
The Dodgers are already well on track to exceed MLB’s highest luxury tax threshold this year, and while they are allowed to do that, there is a penalty. This prompts a 110% average, so Tucker will cost them $119.9 million every year instead of the original salary.
Nevertheless, because they’re the Dodgers, they make more than enough in revenue to help pay for those costs. They are uniquely positioned as the best and most profitable team in baseball, so they make money back even when they blow past the luxury tax.
What’s next for baseball?
The Dodgers have broken baseball, exploiting the lack of a salary cap as well as deferrals to build maybe the deepest team in MLB history. This is well within their right, and every team’s owner can do this, but the Dodgers are the only team willing to do it.
It’s created a dynasty with no sign of ending. LA has won two World Series in a row, and they’re absolutely the favorites to win a third. There is not a team on earth that can compete with their lineup, and their pitching is incredible, too.
It would not be a surprise if the next CBA, which is due to expire at the end of this year, changes things. A salary cap is unlikely, but a salary floor is plausible. They may also change deferrals so teams can’t circumvent the one minor penalty that’s in place for spending.
They may also try to even things out as it comes to that luxury tax. The owners are all billionaires, but the Dodgers are one of the few teams that make enough to spend like this. The Pittsburgh Pirates could spend like this, but they don’t bring enough revenue for it to be an actual consideration. Most teams are in that boat.
As for the rest of free agency, Bo Bichette and Cody Bellinger will now get the attention. The New York Yankees desperately need Bellinger back, but there may now be a bidding war. Bichette remains the only other intriguing hitter, so expect his interest to skyrocket as well.
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