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msgkings322
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Got this response (from Gemini). The Dodgers spending relative to the league is more than the 90s Yankees but less than the 2000s Yankees:
When comparing the spending power of the late 90s New York Yankees and the modern-day Los Angeles Dodgers, the Yankees were actually the more aggressive spenders relative to their peers.
While the Dodgers' current numbers ($300M+) look massive compared to the Yankees' 1990s figures ($60M–$90M), the Yankees’ payroll represented a much larger multiple of the league average at the time.
Shohei Ohtani’s contract is technically $70M/year, but because he defers most of it, his "present value" hits the payroll books at a lower rate for luxury tax purposes. In the 90s, what the Yankees paid was generally what hit the books immediately.
Would you like me to break down the specific luxury tax penalties the Dodgers are projected to pay for their 2025 and 2026 seasons?
When comparing the spending power of the late 90s New York Yankees and the modern-day Los Angeles Dodgers, the Yankees were actually the more aggressive spenders relative to their peers.
While the Dodgers' current numbers ($300M+) look massive compared to the Yankees' 1990s figures ($60M–$90M), the Yankees’ payroll represented a much larger multiple of the league average at the time.
The Comparison (Relative to League Average)
| Team (Era) | Est. Peak Payroll | League Average | Spend vs. Average |
| NY Yankees (1996–2000) | ~$92.5M (2000) | ~$49.3M (2000) | ~1.88x |
| LA Dodgers (2024–2026) | ~$417M (2026) | ~$170M* (2025/26) | ~2.45x |
Why the Yankees' Spending Felt "Bigger"
In the late 90s, the financial "gap" between the top and bottom was arguably more jarring because the luxury tax systems were not yet as punitive as today’s "Steve Cohen Tax" tiers.- The 1996 Yankees: Won the World Series with a record-setting $61.5M payroll. At that time, the Milwaukee Brewers were competing with just $11.7M. The Yankees were spending over 5x more than the lowest-spending team.
- The Modern Dodgers: While their $400M+ tax payroll is a record, the floor has risen. Today’s lowest spenders (like the Athletics or Marlins) typically hover around $60M–$80M. The Dodgers are spending roughly 5x to 6x the floor, similar to the 90s Yankees, but they face steep "Competitive Balance Tax" penalties that didn't exist in the same way during Joe Torre's early years.
The "Deferred" Factor
The modern Dodgers use a tool the 90s Yankees didn't: massive deferrals.Shohei Ohtani’s contract is technically $70M/year, but because he defers most of it, his "present value" hits the payroll books at a lower rate for luxury tax purposes. In the 90s, what the Yankees paid was generally what hit the books immediately.
Verdict
If you look strictly at the Dynasty Era (1996–2000), the Dodgers are actually spending more relative to the average team today. However, if you include the early 2000s (the "Evil Empire" peak), the Yankees hold the crown for the greatest spending disparity in baseball history.Would you like me to break down the specific luxury tax penalties the Dodgers are projected to pay for their 2025 and 2026 seasons?
