Sunday, October 4, 2026

Record-Tying 6 MLB Teams Could Be Hit With Luxury Tax

  • Six MLB teams are on pace to get hit with the league’s luxury tax, for only the second time in history.
  • The New York Mets boast the highest payroll currently, at $273.9 million.
Tommy Gilligan-USA TODAY Sports

Want more from Front Office Sports
in your search results?

Add Front Office Sports on Google

Six MLB teams are on pace to get hit with the league’s luxury tax, for only the second time in history. MLB’s top spender, as has often been the case, is a New York team — but not the Yankees.

The New York Mets boast the league’s top payroll ($273.9M) as of Aug. 31, according to data reported by The Associated Press, and are projected to owe a league-high luxury tax of $29.9 million.

Rounding out the other six:

  • Los Angeles Dodgers: $267.2M, ($29.4M tax)
  • New York Yankees: $254.4M, ($9.4M tax)
  • Philadelphia Phillies: $243M, ($2.6M tax)
  • Boston Red Sox $234.5M, ($900K tax)
  • San Diego Padres: $233M, ($800K tax)

“First-time offenders pay 20% on the amount above the first threshold, 32% above the second, 62.5% above the third and 80% above the fourth,” according to the AP.

The Mets haven’t seen a record payroll since 1989. But since owner Steve Cohen purchased the team after the 2020 season concluded, spending has continued to increase. The team doesn’t want the money to go to waste — it’s vying for its first World Series title since 1986. 

Of the six teams, only Boston is projected to miss the playoffs.

Download the FOS App

The business of sports, in your pocket.

QR code to download the app

Scan the QR code to get the app now.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Brewers, Rays Make Playoffs, Complicating MLB Labor Fight

The Brewers and Rays both have below-average payrolls.
Sep 9, 2026; Los Angeles, California, USA; Los Angeles Dodgers two-way player Shohei Ohtani (17) looks on during the first inning against the Cincinnati Reds at Dodger Stadium.

Ohtani Heads to Injured List as Dodgers Aim for Third Title

The two-way phenom is making a rare trip to the injured list.
Sep 5, 2026; San Diego, California, USA; New York Yankees Aaron Judge (99) watches play during the fifth inning against the San Diego Padres.

Yankees Ticket Prices Rise as Judge Returns

One of MLB’s top fan attractions is returning to action.
Sep 1, 2021; Anaheim, California, USA; A general overall view of the Angel Stadium exterior. Mandatory Credit: Kirby Lee-USA TODAY Sports

Stan Kroenke’s $4 Billion Angels Deal Puts a New Ballpark in Play

The factors supporting a stadium replacement continue to grow.
podcast thumbnail mobile
Front Office Sports Today

A Conversation with Randy Levine on the Yankees’ $2.6B Apollo Deal and the Protect College Sports Act

0:00

Featured Today

Oct 4, 2025; Tempe, AZ, USA; General action during the first period of the game between the Arizona State Sun Devils and the Penn State Nittany Lions at Mullett Arena

How Military-Style Workouts in College Sports Get Dangerous

For elite athletes, high-intensity training can be “very appealing.”
September 6, 2026

Is Carolyn Tisch Blodgett the Future Face of Giants Ownership?

Amid changes at top of Giants ownership, eyes are on Tisch Blodgett.
September 4, 2026

Wild Transfer Window Shows How Premier League Towers Over Soccer

Spending in England vastly outstripped the rest of Europe.
September 3, 2026

Teams Are Spending Millions to Build Luxury Locker Rooms

It’s a recruiting pitch, a retention tool, and a seven-figure line item.
September 1, 2026

High School Football Sidelines Are Clogged With Content Creators

Administrators call these amateur newcomers the “pajama paparazzi.”
Adam Silver, NBA commissioner, attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, U.S., July 7, 2026.

Clippers Controversy Hangs Over NBA Board of Governors Meeting

Adam Silver is expected to hold a press conference Tuesday.
Tennis - U.S. Open - Flushing Meadows, New York, United States - September 12, 2026 Belarus' Aryna Sabalenka enters the court ahead of her final match against Kazakhstan's Elena Rybakina IMAGN IMAGES via Reuters/Geoff Burke
September 14, 2026

Top Tennis Players Pause Public Battle With Grand Slams

It’s not clear which players will be part of the new council.
September 14, 2026

NFL Kickoff Ratings Dip on Wednesday

Viewership surprisingly fell for the NFL’s season opener.
Sponsored

Drew Weatherford’s Bet on the Youth Sports Economy

Drew Weatherford discusses investing across the youth, college and professional levels.
September 14, 2026

NFL Gets Explosive Sunday of Scoring After Sluggish Start

Teams put up 791 points, tying the high mark from 2012.
September 13, 2026

Zverev Beats Shelton as American Men’s Grand Slam Drought Continues

Zverev won the US Open for his second Grand Slam of 2026.
Tennis - U.S. Open - Flushing Meadows, New York, United States - September 9, 2026 Spain's Carlos Alcaraz fells during his quarter-final match against Ben Shelton of the U.S. REUTERS/Eduardo Munoz
September 12, 2026

No Quick Fixes Coming for US Open’s Late Nights

While Wimbledon has a curfew, the other three majors don’t want one.
The Herd
Exclusive
September 12, 2026

Colin Cowherd Buys Stake in EPL’s Ipswich

Other Ipswich investors include Marques Colston and Ed Sheeran.