The New York Mets have been hit with a stunning luxury tax bill of nearly $101 million, a record-breaking amount for a single team in Major League Baseball's history. The hefty penalty comes after the Mets finished fourth in their division, joining an unprecedented group of eight teams that owe the tax for the 2023 season.

According to figures released by Major League Baseball and obtained by the Associated Press, the Mets' tax payroll reached a staggering $374.7 million. This surpasses the previous high of $291.1 million set by the Los Angeles Dodgers in 2015. The Mets' tax bill alone amounts to $100,781,932, more than doubling the previous record of $43.6 million by the 2015 Dodgers.

The Mets' disappointing fourth-place finish in the National League East with a 75-87 record has been labeled the most expensive failure in baseball history. However, the team managed to save about $18 million with a summer selloff that saw the departure of star players Max Scherzer, Justin Verlander, David Robertson, and Mark Canha.

Before the selloff, the Mets' projected tax payroll on June 30th stood at $384 million. Adding the additional $9.3 million in payroll would have resulted in a tax bill $8.4 million higher. The team, however, received a tax credit of $2,126,471 under a provision in the latest collective bargaining agreement, which lessened their total tax burden.

Joining the Mets in owing luxury taxes are the San Diego Padres ($39.7m), the New York Yankees ($32.4m), the Dodgers ($19.4m), the Philadelphia Phillies ($6.98m), the Toronto Blue Jays ($5.5m), the Atlanta Braves ($3.2m), and the World Series champion Texas Rangers ($1.8m). Notably, the Blue Jays, Braves, and Rangers are paying luxury tax for the first time.

The Yankees and Mets were the only teams to exceed the fourth threshold of $293 million, introduced in the 2022 labor contract, which has been dubbed the Cohen Tax, targetting Mets' owner Steve Cohen.

The total spending on luxury tax payrolls across the league rose 12.2% to a staggering $5.79 billion, a significant increase from last year's record of $5.16 billion.

Since the inception of luxury tax penalties in 2003, the Yankees hold the top position with a total tax burden just under $390 million, accounting for 43% of the $901 million accumulated by all teams. The Dodgers follow with a tax payment of $234 million. It is worth noting that 14 of the 30 MLB teams have owed luxury tax payments over the past two decades.

Moving forward, next year's initial luxury tax threshold is set at $237 million. Should the Mets, Yankees, Dodgers, Padres, or Phillies exceed it, they will face the highest tax rate, which will rise to 110% for amounts over $297 million.

The luxury tax revenue will be allocated towards player benefits, individual retirement accounts for players, and a supplemental commissioner's discretionary fund to support teams receiving revenue-sharing money.

As the offseason progresses, MLB will finalize regular payrolls based on 2023 salaries, earned bonuses, and prorated shares of signing bonuses.

The New York Mets, a franchise in need of a turnaround, now face the daunting task of regrouping and rebuilding after a season marred by underperformance and financial implications.