I haven’t really talked about this yet, but I kind of feel obligated to put out a post about it, so here’s my take:
First, please understand this is an MLB take, not a Red Sox take. I’m saying this as a baseball fan, not as a Red Sox fan complaining about the Dodgers. This does NOT excuse Red Sox ownership whatsoever. Boston is a massive-market team with plenty of money, and I’ve criticized ownership plenty for not spending like one.
As someone who DOESN’T want a salary cap, what’s coming out about the Dodgers leaves an absolutely disgusting taste in my mouth.
For YEARS, we’ve heard the same argument about the Dodgers: This is what good ownership looks like. Every team could do this. Your owner is just cheap.
And now we’re learning it apparently wasn’t that simple.
Roughly $1.45 BILLION in debt tied to the Dodgers’ media operation is reportedly held by insurance companies connected to their own ownership group. The structure potentially allows money to remain within that ownership ecosystem while reducing the net TV revenue subject to MLB revenue sharing.
Think about what that potentially means.
We spent years being told every team could operate like the Dodgers. Meanwhile, other teams realistically could NOT replicate this structure, and the Dodgers may have actually been reducing the amount of their TV money being shared with those same teams while building the financial machine that helped support their unprecedented spending.
And this is where I have a major problem with the national baseball media.
Jeff Passan. Ken Rosenthal. Jon Heyman. Bob Nightengale. These are some of the biggest and most influential reporters covering this sport.
I am NOT accusing any of them of knowing this was happening (Well Passan maybe not sure if anyone else saw that report).
But now that these reports ARE out, where is everybody?
Because after YEARS of discussion about the Dodgers’ spending, competitive balance, deferred contracts and whether other owners should simply follow LA’s example, I cannot understand how something potentially this significant isn't dominating the conversation.
And I have a really hard time believing that if allegations this serious emerged and supported the opposite side of this debate, they would be met with this level of silence.
If we learned that smaller-market owners had potentially constructed some elaborate financial structure to artificially make themselves look poorer, collect more revenue-sharing money and justify refusing to spend, does anyone seriously believe baseball media would just shrug and move along?
They’d be getting DESTROYED. And frankly, they should be.
That same scrutiny needs to apply here.
And after years of being told everyone else could simply “do what the Dodgers do,” this leaves an incredibly disgusting taste in my mouth.
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Erling Haaland is probably the most famous living Norwegian. He was born in England and lives there today. His father, Alf-Inge, left Norway in the 1990s to play football, and the family's fortune was built abroad.
That last part matters. Because Norway, for all its virtues, charges its own residents 1% a year on net worth above NOK 1.9m (~$192k), rising to 1.1% above NOK 21.5m (~$2.2m).
The method is blunt. Everything you own minus your debts, taxed every year whether you sell anything or not. A few softeners exist, like your home counting at only 25% of value, but the wealthy don't argue with it, they exit: around 300 multimillionaires have recently left for Switzerland.
In practice, a net worth of just $500k already means $3k+ a year. At a threshold that low, this isn't really a wealth tax anymore. It's just a tax that reaches over 700,000 people, about one in six Norwegian adults.
So, why am I writing this? Nearly every broad tax began as a narrow one on the rich, the income tax being the textbook case, and Norway's has widened in the 130 years since 1892.
It's a useful reminder every time a new wealth tax appears in the political debate, as one now is in NYC: directionally, the reach of these taxes tends to expand over time, rarely to contract.
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