New York Mets Owner Steve Cohen Faces Record-High Luxury Tax Penalty

The New York Mets’ disappointing 2023 season has resulted in billionaire owner Steve Cohen being hit with a staggering luxury tax bill of nearly $101 million, according to figures released by the Associated Press. This record-breaking penalty serves as a harsh reminder of the team’s failure to live up to expectations despite their high-profile acquisitions.

Record Number of Teams Paying Luxury Tax

A total of eight major-league teams, including the San Diego Padres, New York Yankees, Los Angeles Dodgers, Philadelphia Phillies, Toronto Blue Jays, Atlanta Braves, and the World Series champion Texas Rangers, will be paying the luxury tax this year. The Los Angeles Angels narrowly avoided the penalty by strategically shedding salary towards the end of the season.

Mets Set New Luxury Tax Payroll Record

The Mets, determined to win their first World Series since 1986, ended up with the highest luxury tax payroll in history, reaching a staggering $374.4 million. Consequently, their tax bill of $100.8 million more than doubled the previous record set by the Dodgers in 2015.

Playoff Success and Penalty Payments

Interestingly, the three teams with the highest tax bills—the Mets ($100.8 million), Padres ($39.7 million), and Yankees ($32.4 million)—failed to make the playoffs. On the other hand, the Dodgers ($19.4 million), Phillies ($7.0 million), Blue Jays ($5.5 million), and Braves ($3.2 million) all secured postseason berths. The Texas Rangers, with a modest penalty of $1.8 million, emerged as the champions.

Record-Breaking Penalties

Collectively, the eight teams are obligated to pay a staggering $209.8 million in luxury tax penalties, surpassing last season’s record of $75.8 million. This serves as a stark reminder of the financial consequences faced by teams that fail to meet expectations.

Conclusion

The New York Mets’ failed 2023 season has resulted in owner Steve Cohen being hit with a record-high luxury tax penalty. This penalty, along with the penalties faced by seven other teams, highlights the financial implications of underperforming in Major League Baseball.

Required Reading

(Photo: Jim McIsaac / Getty Images)