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Luxury Tax Newsbeat

Monday, January 21, 2019

Cubs have considered trading Ben Zobrist

The things folk do to duck the luxury tax….

QLE Posted: January 21, 2019 at 06:13 AM | 4 comment(s)
  Beats: ben zobrist, cubs, luxury tax

Friday, January 11, 2019

How MLB’s Luxury Tax Has Put a Deep Freeze on Spending - WSJ

Players also should consider the unintended consequences of their decision to screw amateurs and foreign free agents. By limiting the amount of money teams can spend on those players (in the hope the money would then be spent on MLB players), they’ve increased the surplus value of those players. At the same time, by not pushing for higher luxury limits, by not pushing for higher minimum salaries, and by limiting the money spent on farm/international players, teams (especially high revenue teams) have invested more money into improving their player development systems and processes. This, in turn, has made young players more viable options to replace higher cost veterans, enhancing their value even further.

Jim Furtado Posted: January 11, 2019 at 11:14 AM | 2 comment(s)
  Beats: cba, economics, luxury tax

Sunday, December 16, 2018

Red Sox owe $12 million in luxury tax, showing why they’d want to shed payroll

Wondering why the Red Sox would consider trading key contributors such as Rick Porcello and Jackie Bradley Jr.? This might be a big reason why.

According to the Associated Press, the Red Sox owe around $12 million in luxury tax payments after having the highest payroll in baseball this past season. The Nationals are the only other team to pay the tax, but their total was down around $2 million.

The Red Sox will also face a new penalty. Because they were $40 million over the luxury tax threshold ($197 million), their first pick in the 2019 MLB amateur draft will be dropped 10 places (From 33 to 43). For a team with a somewhat depleted farm system, those spots matter.

Of course, these are only issues if you let them be ones….

QLE Posted: December 16, 2018 at 04:29 AM | 18 comment(s)
  Beats: dollah dollah bills, y'all, luxury tax, red sox

 

 

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