Los Angeles Dodgers president and CEO Stan Kasten told reporters Friday that the team is not for sale, despite a federal investigation into owner Mark Walter that coincided with his abrupt sale of the Los Angeles Lakers. One key difference between the Dodgers and Lakers, which Walter agreed to sell for $12.5 billion to Joshua Kushner and Bob Iger on Aug. 12: NBA player salaries are bound by a hard cap. MLB player salaries are not.
The current collective bargaining agreement between MLB players and owners doesn't expire until Dec. 1. But the league has already proposed instituting a hard cap, in addition to curbing the practice of deferring salaries. Fixing the price of every team's least predictable expense — the cost of star free agents — would theoretically increase team valuations across the board.
The Dodgers shattered precedent by paying more competitive balance taxes last winter ($168.4 million, according to the ) than some teams spend on their entire player payroll. Deferring the salaries of Shohei Ohtani, Freddie Freeman, Kyle Tucker, and other stars helped them achieve the record. More news: Dodgers ‘Dodge a Bullet’ After 10-Time All-Star Tumbles Into Dugout If the Dodgers sold today, they would be unlikely to fetch Walter $12.5 billion, according to an analyst who spoke with Bill Shaikin of the Los Angeles Times.
But if they sold next year, and MLB gets its wish for a salary cap? "Mark Walter and his people say they're not [selling the Dodgers], but let's say they did," Shaikin said on the Aug. 21 episode of "Halo Territory." "What could you get? I talked to a guy who works in this line of the sports business and he said, 'I think you could get $10 billion for the Dodgers right now, but if you get a salary cap, you could probably get $12 to $13 billion.' " More news: Tommy John Dies; Pitcher Became Famous for Surgery Success Both Walter and Kasten have previously voiced their support for more parity in MLB.
At a glance, that would seem to contradict the Dodgers' modus operandi. Los Angeles has exploited a disproportionately high payroll to win the last two World Series. A hard salary cap might help bring the Dodgers back down to earth.
It would also raise the value of the franchise, perhaps higher than that of the Lakers. The latter point could be of great interest to Walter — if not soon, then possibly in 2027. For more MLB news, visit Newsweek Sports.
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