Ring: The Dodgers, investors, and the business judgment rule

From Sheryl Ring at FanGraphs on November 30, 2018:

Before the 2018 season, two previously big-spending teams had plans to drop below the luxury tax threshold and reset their tax rates. The first, the Yankees, nonetheless had a successful season, winning 100 games en route to a Wild Card win and Division Series berth. The other, the Dodgers, had a more successful season, making it to the World Series for the second consecutive year before succumbing to the Red Sox (themselves big spenders) and Ryan Madson. In both cases, however, we have teams with young talent that look to be contenders for years to come, so the conventional thinking going into 2018 was that both franchises would drop below the tax limit for one year to reset their rates and then be active in what was long thought to be one of the most coveted free agent class of the decade.

So though the Dodgers have already accomplished their major offseason business – inking Clayton Kershaw to a contract extension, thereby avoiding the lefty ace hitting free agency – many expected them to return to something more closely resembling their 2017 ways, when the team spent a whopping $290 million between payroll and taxes.

Read the full article here: https://www.fangraphs.com/blogs/the-dodgers-investors-and-the-business-judgment-rule/

Originally published: November 30, 2018. Last Updated: November 30, 2018.