The Los Angeles Dodgers are in the playoffs *every single season* since 2012, and they’ve already locked up the last two World Series titles. That’s a dynasty, plain and simple, and everyone points to their insane payroll as the reason.
The Moneyball Myth and Reality
Yeah, the Dodgers spend big. No one disputes that. They even traded for two-time Cy Young winner Tarik Skubal this season, triggering another mass freakout across the league. But get this, they didn’t even *start* 2026 with the highest payroll! That was the Mets. It’s only *after* the Mets’ trade deadline selloff and the Dodgers’ own mid-season additions, like Skubal, that LA is set to finish the year with the biggest bill. We’re talking monstrous luxury tax penalties, too. Last season, they dropped $169 million on penalties, and this year’s gonna be similar. That tax money helps player benefits and other teams, sure, but it clearly doesn’t slow the Dodgers down. They also lead MLB in attendance every year, aside from 2012 and 2020, thanks to the league’s biggest ballpark and, let’s be real, putting a winning product on the field. Fans want to watch good baseball, and the Dodgers deliver.
The TV Deal: An Unfair Advantage?
But here’s the real kicker, the secret weapon that goes way beyond ticket sales or even yearly free agent splurges: their TV rights deal. Back in 2012, Guggenheim Baseball Partners bought the team for a staggering $2.15 billion. The TV rights negotiations got finalized in 2013, and that’s where the magic happens. Originally, only $84 million of those rights were subject to revenue sharing in year one, later bumped to $130 million with an annual escalator. Crucially, *anything additional* was excluded from revenue sharing, which was 34% of local net revenue then, now 48%. Sportico reported this week that the TV rights average $334 million annually, starting around $200 million and climbing to $500 million by 2038. This year alone, the deal pays roughly $320 million, and *more than $100 million* of that isn’t subject to revenue sharing! That’s a “savings” of $50 million to $55 million for the Dodgers right there. Think about that: over $50 million they don’t have to share. That’s pure profit to reinvest.
So, when we see the Dodgers making moves like picking up a two-time Cy Young winner, or just running away with the league again, it’s not just about their current payroll. It’s about a deep, systemic financial advantage, especially from that sweet TV deal. The league might talk about parity, but until that underlying structure changes, don’t expect the reigning champions to slow down. What does this mean for the rest of MLB? They better figure out their own financial game fast, or get used to watching the Dodgers hoist hardware.
This article was created with AI assistance and published under Seattle On Tap’s editorial standards. See our Editorial Policy.
Originally reported by CBS Sports.
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