For the first time since 1998, the Yankees will not be the richest team in baseball. That title now goes to the Los Angeles Dodgers who are already outspending the Yankees and are not done spending this offseason.
The Dodgers signed Zack Greinke to a record deal for a pitcher, $145 million over six years. That contract has put the Dodgers at a $210.1 million payroll for 2013 which does not even include the full 25 man roster yet and they are looking to even add more with rumors that they could add Anibal Sanchez or even Kyle Lohse.
Even if they don’t add either of those big ticket pitchers they will still be spending more than the $213.36 million the Yankees spent in 2010 . With the Yankees budget in place for 2013 there is no chance they will be able to catch up this year either. The Yankees have currently spent $158 million toward 2013 which doesn’t count $8.5 million toward A.J. Burnett and they are still not done spending yet (they have a $12 million offer out to Kevin Youkilis).
The Dodgers are flush with cash though since signing a huge television contract which brings in over $240 million per season (average over the life of the deal). They also draw quite well in the major market of Los Angeles. So spending big doesn’t bother them, and considering this is the first time they will be over the luxury tax, there penalties are not nearly as harsh as the Yankees.
The Yankees are doing quite well too. They recently sold a portion of their share of the YES Network to News Corp. for nearly half a billion and they have an agreement to sell more to them over the next three years with the network valued at $3.8 billion. On top of that, MLB recently signed a quite lucrative national television deal which gets spread out equally among all 30 teams. The Yankees, however, seem very determined to get under the luxury tax threshold at least once (at least we hope to Mo it’s only once) to lower tax penalties and have put in a strict budget despite being flush with cash themselves.