For far too long, the Dodgers have been the symbol of extravagant sports spending. With their financial muscle flexing this offseason and signing the most prominent names to the team, the Dodgers proved to be the force to reckon with. Well, owing to their spending spree, the Dodgers got enough ridiculed by their rivals. People often call the Dodgers names like “baseball-ruiners” and “the league’s evil empire”. However, the latest revenue and payroll ranking by BrooksGate tells otherwise.
Reportedly, the Dodgers were projected to surpass the Mets’ $374 million salary in 2023. For 2025, the Dodgers will pay 110 percent tax on any amount over $301 million. The competitive balance tax on a $388.6 million payroll would be $137.8 million. Likewise, last year, the Dodgers paid a record $103 million in luxury tax.
Thus, adding up the payroll and luxury tax, the Dodgers would spend $525.6 million, which would be baseball’s first payroll of $500 million. That was the projection, owing to their spending spree in the offseason. However, the Mets had different plans.
Yes, the Mets topped the payroll ranking for 2025 with $400 million, with the Dodgers in the second, SI.com reported. Does that mean the Mets are the more expensive team than the Dodgers? The Mets made $444 million in revenue last season and have a current payroll including a luxury tax of $400 million, making their payroll-to-revenue percentage 90 percent.
The Dodgers, on the other hand, made $752 million in 2024 and have the league-leading payroll this season (including the luxury tax) of $549 million. This makes them second in the league at 73 percent.
how much revenue each MLB team generated last year, and how much of that is going towards their payroll this year pic.twitter.com/UAZmHhaR8a
— BrooksGate (@Brooks_Gate) March 29, 2025
The Mets spent 90% of their 2024 revenue on the 2025 payroll, while just 73% for the Dodgers. Contrary to popular belief, the Mets’ revenue-payroll ratio looks like there’s no tomorrow. With the earth-shattering $752 million revenue for the Dodgers in 2024, it looks like they went for an overhaul, including stadium development and fan experience.
The Mets focused more on equipping their lineup. So, is this a risky affair for the Mets to spend 90% of the revenue on the players? Well, the Mets owner, Steve Cohen, is the richest in the MLB, with more than $15 billion in wealth. He has that financial cushion to absorb the risk. However, the spending spree and revenue of the Mets and Dodgers offer a glaring disparity in MLB.
The widening gap in payroll among the teams would reduce the league’s competitive scenario.
The Dodgers and Mets are leading the payroll disparity in MLB
“According to these figures, the Mets spend the highest percentage of their revenue on players (90 percent) and the Marlins the lowest (27 percent).” MLB insider Job Heyman highlighted the difference between the teams and how the lower-tier teams are no match for these financial behemoths in fielding a stacked team.
For the unversed, the Marlins have an $86 million payroll this year, and Juan Soto got a $765 million contract for the Mets, with an AAV of approximately $43 million. So, is there any chance for a player like Soto to play for the Marlins? No!
For those unversed, the average payroll difference between MLB’s highest- and lowest-spending teams over the last five years has been more than $200 million as of 2024. In contrast, it has been less than $100 million in the NFL. How?
The NFL follows the National Media Rights, which are equally distributed among all teams. In the case of MLB, local media rights play their part. Hence, a team like the Dodgers earns huge from their local media rights, compared to less popular teams like the Marlins. The discussion of a salary cap is long-pending in MLB and unlikely to change anytime soon.
The payroll and revenue gap between MLB teams is expected to widen further in the coming seasons. Hopefully, the competitive scenario won’t be affected in the league. Otherwise, it will be a loss for the most expensive team as well.
What do you think about the payroll disparity in MLB? Let us know in the comments below.
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