Major League Baseball’s average salary rose 7.1% last year to a record $4,525,719, according to the annual report the players’ association issued Thursday, but several teams appear to be cutting payroll for 2024.

After declining in 2021 following the pandemic-shortened season, the average rose 23% over two seasons. The 2022 average marked a 14.8% increase from 2021.

Union figures are based on the 2023 salaries, earned bonuses and prorated shares of signing bonuses for 1,038 players on Aug. 31 active rosters and injured lists, before active rosters expanded for the remainder of the season.

Luxury tax payrolls, based on 40-man rosters and average annual values, increased 12.2% in 2023, according to MLB’s calculations.

The Los Angeles Dodgers have topped offseason spending, giving two-way star Shohei Ohtani a record $700 million, 10-year contract and pitcher Yoshinobu Yamamoto a $325 million, 12-year deal.

With some significant free agents still on the market, the New York MetsSan DiegoLos Angeles AngelsSan FranciscoBostonColoradoMinnesota and the Chicago White Sox are among the teams on track to cut payroll from last year.

“In the face of record revenues of our game that will continue to spiral upward, we have major market teams, many of which would otherwise be competitive teams, simply cutting payroll and not investing in competitiveness,” said agent Scott Boras, who has yet to reach deals for free agents Blake SnellJordan MontgomeryMatt Chapman and J.D. Martinez.

The Mets and Padres paid the highest luxury tax last year for exceeding payroll thresholds and both failed to make the playoffs.