The Los Angeles Dodgers open the season with the largest MLB payroll: $253 million. Only one other team has a payroll more than $200 million.
From the data collected by Spotrac, the Dodgers are the Kings of Dead Money. The Dodgers do not have $253 million worth of
talent taking the field on Opening Day. Of the Dodgers' $253 million in 2016 salaries, only $140 million
(55%) is committed to players on the active, 25-man Opening Day roster. The other 45% of payroll, $113 million, is for players on the
disabled list, key players in the minors, or former players now playing
on other teams. The $113 million is more than the entire payroll for 14 teams, according news reports.
The biggest chunk is for players on the disabled list, inlcuding
outfielder Andre Ethier ($18.0 million salary), pitcher Brett Anderson
($15.8 million), Brandon McCarthy ($12.5 million), and second baseman
Howie Kendrick ($10.0 million). The Dodgers are also paying $23.7
million for players on other teams, including all $8.0 million of the
2016 salary for first baseman Michael Morse, who was traded to the
Pirates last season with the Dodgers agreeing to pay most of his
remaining salary.
The Dodgers are in the position to be spendthrifts because of its billion dollar TV rights deal with Time-Warner to create new Dodger Network. The Dodgers are still getting paid, but TW is getting burned since it has been unable to sell the channel to other cable and satellite TV providers.
The blueprint follows the big money teams of the Yankees and Red Sox, who could afford to bury their mistakes by buying or trading for expensive talent. However, outspending your opponents does not necessarily mean that you can buy a championship. The KC Royals are a prime example of that principle.
