MLB Luxury Tax Payrolls Hit $5.2B In Record Revenue Year

Total Major League Baseball player compensation reached new heights in 2022.

Payments to players topped $5 billion for the first time, reaching $5.2 billion – up from $4.5 billion the year before. 

• That sum includes player salaries on each team’s 40-man roster, calculated as the average annual value across each players’ contract.
• It also includes $16 million per club in additional benefits, including healthcare, pensions insurance, spring training allowances, meal and tip money, and taxes.

Six teams made luxury tax payments for exceeding the $230 million payroll threshold, led by the Los Angeles Dodgers with a $32.4 million bill. 

The New York Mets paid $30.8 million. They had the league’s highest payroll at $299.8 million, but were assessed at a lower rate because they had not crossed the payroll threshold the year prior. 

The New York Yankees, San Diego Padres, Philadelphia Phillies, and Boston Red Sox also made payments which will go into MLB’s competitive balance pool.

Media

| by Owen Poindexter

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Record Revenue

The record payroll total corresponded with a record revenue year for MLB, which brought in $10.8 billion in 2022. New media deals with Fox, TBS, and ESPN brought in $1.8 billion, and sponsorship deals added another $1.2 billion.

The league will add a new source of funds this season with teams now allowed to sell sponsored uniform patches.