Dodgers Co-Owner Answers if Team has Spending Limit

Jun 18, 2015; Los Angeles, CA, USA; Los Angeles Dodgers president Stan Kasten (left), chairman Mark Walter (center) and partner Todd Boehly react after the game against the Texas Rangers at Dodger Stadium. The Dodgers defeated the Rangers 1-0. Mandatory Credit: Kirby Lee-Imagn Images | Kirby Lee-Imagn Images

The Los Angeles Dodgers have been on an unprecedented spending spree since Shohei Ohtani agreed to a 10-year, $700 million contract in December 2023.

That same offseason saw the Dodgers trade for Tyler Glasnow and sign him to an extension, and ink Yoshinobu Yamamoto to a record-setting contract. A World Series title followed and then came more spending.

Looking to become MLB's first repeat champion since the 1998-2000 New York Yankees, the Dodgers re-signed Teoscar Hernández and Blake Treinen to respective multi-year deals, and signed Blake Snell and Tanner Scott to big-money deals.

Another World Series title came, and it's been followed with even more spending in the form of adding Edwin Díaz and Kyle Tucker.

Díaz's three-year, $69 million contract set an average annual value (AAV) record for relief pitchers. Tucker's four-year, $240 million deal is an all-time AAV high in MLB history, even when factoring in deferrals bringing that number down to $57.1 million.

Coming off a season in which the Dodgers had the most expensive roster in MLB history with a $417.3 million payroll, the team is on track to again exceed $400 million in 2026.

What is the Dodgers' budget?

While the Dodgers front office has continued to operate within the rules set forth in MLB's collective bargaining agreement (CBA), they nevertheless have drawn the ire of other fanbases and some team owners as well.

The perception is the Dodgers are capable, if not determined, to spend any amount necessary, they do have a financial limit.

During an interview with Scott Soshnick of Sportico, Dodgers co-owner Todd Boehly shared it is nearly half of the revenue the franchise generates.

Boehly was asked what he considers to be the Dodgers’ budget. His answer: 40% of team revenue.

Exact revenue figures for the Dodgers and most MLB teams are difficult to ascertain, given their status as private entities.

Forbes reported the Dodgers generated $549 million in revenue for 2024 and $752 million last season. The publication calculates team revenue as "net of stadium revenues used for debt payments."

According to Sportico, the Dodgers last year became MLB's first team to ever reach $1 billion in revenue and just the fourth franchise in the world to accomplish the feat.

Todd Boehly bio

Boehly is the co-founder, chairman and CEO of Eldridge Industries, along with serving as their chairman. He's additionally part of the Guggenheim Baseball Management group that purchased the Dodgers from Frank McCourt in 2012.

The Dodgers' ownership group also includes controlling partner Mark Walter, Magic Johnson, Stan Kasten, Bobby Patton, Peter Guber, Billie Jean King, Ilana Kloss, Alan Smolinisky and Robert L. Plummer.

Boehly also is a partner with Walter in ownership groups for the Chelsea Football Club, Los Angeles Lakers and Los Angeles Sparks, and with Johnson for the Washington Commanders.