Summary
The Los Angeles Dodgers receive a special tax exemption of about $66 million each year from Major League Baseball (MLB). This arrangement started after the team filed for bankruptcy in 2011 and will last until 2039. The exemption allows the Dodgers to keep more of their local TV revenue.
Key Facts
- The Dodgers filed for Chapter 11 bankruptcy in 2011.
- After this, MLB taxed the Dodgers' TV deal as if they were still bankrupt.
- This tax exemption lets the Dodgers save about $66 million every year.
- The exemption will last until 2039.
- Normally, MLB teams must share a large part of their local TV money with other teams.
- The Dodgers' TV deal with Time Warner Cable is worth about $8 billion over five years.
- If taxed normally, the Dodgers would owe about $95.2 million a year in revenue sharing.
- This tax break gives the Dodgers an advantage over other MLB teams.
