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Sunday, September 15, 2019

Red Sox on track for $13M luxury tax despite mediocre record

NEW YORK (AP) — The Boston Red Sox are on track to pay a $13.05 million luxury tax for a season in which they are likely to miss the playoffs.

The World Series champions’ payroll for purposes of the tax increased from $239.7 million on opening day to $242.8 million on Aug. 31, according to calculations by the commissioner’s office obtained by The Associated Press. That is well over the $206 million threshold where the tax begins.

As of opening day, the Red Sox were projected for an $11.76 million tax.

Boston entered Saturday with a 77-70 record, 8½ games out for the second AL wild card with 15 games remaining. The Red Sox fired president of baseball operations Dave Dombrowski last weekend.

Sometimes, it’s nice to have a reminder that one can’t always buy one’s way to a pennant…..

 

QLE Posted: September 15, 2019 at 12:28 AM | 16 comment(s) Login to Bookmark
  Tags: luxury tax, red sox

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   1. the Hugh Jorgan returns Posted: September 15, 2019 at 01:05 AM (#5879295)
Sometimes, it’s nice to have a reminder that one can’t always buy one’s way to a pennant…..


blah, blah, snark, snark...you know what? 108 wins and the title last year. I'm sure 99% of fans would be more then happy to see their team's owner spend more money and try to win often.

The team still has a lot of talent. Where everything went right last year, this year a lot of things didn't. Mookie did NOT have a 10 WAR season. The SP started slow and has looked average or worse all year. Eh, stuff happens. As of this post, they have 78 wins and will end up in the mid-80's. Disappointing? Sure. I'm I overly concerned, no.

Funnily enough, if they had been a bit more decent and possibly squeaked out 93 wins, I don't think it would've mattered as both the A's and Rays look like getting more wins then that just to battle off in the WC game. NY, Houston and the Dodgers look awesome and the teams just below NY and Houston in the AL, the Twins, Rays and A's are not far behind. The AL playoffs are going to be brutal.
   2. Itchy Row Posted: September 15, 2019 at 01:13 AM (#5879297)
The Red Sox haven’t won a World Series in almost a year and now they have to pay for the equivalent of a pitcher who used to be good but is recovering from Tommy John. There is justice in the world.
   3. Fancy Crazy Town Banana Pants Handle Posted: September 15, 2019 at 03:34 AM (#5879309)
The Red Sox reportedly made almost $500m in revenue last season. Their franchise value keeps going up, and is probably above $3bn right now.

The Red Sox absolutely should be concerned about having a mediocre record. They should not be at all concerned about a luxury tax payment that is the equivalent of a decent set up man.
   4. Bote Man Posted: September 15, 2019 at 08:14 AM (#5879312)
But it's a TAX. A TAX!!

There is nothing more poisonous to a businessman than a TAX! Start a bonfire with that much cash, sure, no problem! But dear gawd not a TAX!!
   5. bfan Posted: September 15, 2019 at 08:41 AM (#5879313)
I know this has been discussed before, but isn't the downside of exceeding the luxary tax when it starts hitting draft choices, and isn't hitting the threshhold one year step 1 toward that happening?

At least with this news and in light of their world championship last year, the Red Sox aren't panicking by firing their GM, or anything like that.
   6. snapper (history's 42nd greatest monster) Posted: September 15, 2019 at 11:51 AM (#5879332)
I know this has been discussed before, but isn't the downside of exceeding the luxary tax when it starts hitting draft choices, and isn't hitting the threshhold one year step 1 toward that happening?

The draft penalty (moving back 10 spots) only hits if you exceed the threshold by $40M+. The Red Sox were not over $246M, so no draft penalty. A team can stay at threshold + $39,999,999 forever, and only pay monetary penalties.
   7. Captain Supporter Posted: September 15, 2019 at 12:17 PM (#5879337)
The Red Sox absolutely should be concerned about having a mediocre record. They should not be at all concerned about a luxury tax payment that is the equivalent of a decent set up man.


Everybody wants to spend other people's money.
   8. puck Posted: September 15, 2019 at 12:34 PM (#5879340)
Rockies were at $174 million in April (Cots's #'s), and are 64-85 due to their 2nd half tailspin (20-40)

Could another $60-70 million have bought them 14 wins (Boston is 78-70)? Probably not at the rate the Rockies buy free agent wins (Desmond, Murphy, Davis, Shaw, Dunn, etc.)

It's always amazing how much money can be spent for little gain.
   9. The Yankee Clapper Posted: September 15, 2019 at 12:44 PM (#5879342)
I'm sure 99% of fans would be more then happy to see their team's owner spend more money and try to win often.

They should not be at all concerned about a luxury tax payment that is the equivalent of a decent set up man.
Heh. I can remember when BBTF was awash in Red Sox Nation comments suggesting that the great moral issue of our time was their rival spending “too much” on players. Times change, eh?
   10. DFA Posted: September 15, 2019 at 12:56 PM (#5879348)
Why are they taxing job creators?
   11. John DiFool2 Posted: September 15, 2019 at 01:04 PM (#5879350)
Sometimes, it’s nice to have a reminder that one can’t always buy one’s way to a pennant…


It's always amazing how much money can be spent for little gain.


Yeah. 101 years with no titles, and still counting. It's got to be pure unadulterated misery, let me tell you.

Luckily, I'm not in the same timeline that two appear to be stuck in.
   12. SoSH U at work Posted: September 15, 2019 at 02:12 PM (#5879359)
Luckily, I'm not in the same timeline that two appear to be stuck in.


Puck was talking about his Rockies.
   13. Darren Posted: September 15, 2019 at 03:37 PM (#5879384)
Heh. I can remember when BBTF was awash in Red Sox Nation comments suggesting that the great moral issue of our time was their rival spending “too much” on players. Times change, eh?


I can remember when Yankees fans would go on and on about how the Yankees were makers and the rest of the league were takers.
   14. JRVJ Posted: September 15, 2019 at 04:25 PM (#5879399)
The article is much fairer than that awful headline.

Frankly, I see no reason why teams with high revenues should stop themselves from going over the luxury tax threshold PROVIDED they don't exceed $40MM (and have their pick go down 10 spots, with the cash impact of that decrease).

Take the Yankees. They're paying $6.54MM in luxury tax. That's pocket change by any stretch of the imagination, and in no way something that should dissuade them from larger financial commitments in the pursuit of championships (and audience commitment).
   15. the Hugh Jorgan returns Posted: September 15, 2019 at 07:14 PM (#5879453)
Take the Yankees.


There's a Henny Youngman joke right there.....
   16. jmurph Posted: September 16, 2019 at 10:07 AM (#5879555)
The Red Sox reportedly made almost $500m in revenue last season. Their franchise value keeps going up, and is probably above $3bn right now.

The Red Sox absolutely should be concerned about having a mediocre record. They should not be at all concerned about a luxury tax payment that is the equivalent of a decent set up man.

The degree to which the owners absolutely rolled the players and the media on this thing is truly a thing to behold. We have Yankees fans- Yankees fans!- who have absorbed the idea that "you gotta reset the tax, can't pay the repeater tax." It's incredible.

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