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Luxury Tax Newsbeat

Saturday, February 15, 2020

MacPhail says Phillies expect to pay luxury tax this season

CLEARWATER, Fla. (AP) — Philadelphia Phillies president Andy MacPhail reiterated that team ownership is willing to go over the luxury tax threshold to make the playoffs.

The Phillies have made several high-profile free-agent signings over the past few seasons, including a $330 million, 13-year deal for outfielder Bryce Harper last year.

Philadelphia signed right-hander Zack Wheeler to a $118 million, five-year contract this offseason and are viewed as a potential trade destination for Chicago Cubs third baseman Kris Bryant, who has an $18 million salary.

“Speaking for the Phillies and ownership we’re not reluctant to go over it,” MacPhail said Friday. “It’s my hope, and frankly my expectation, that we’re going to exceed it this year.”

How long before they try to get rid of a certain outfielder?

 

QLE Posted: February 15, 2020 at 01:08 AM | 0 comment(s)
  Beats: andy macphail, luxury tax, phillies

Thursday, February 13, 2020

The Ringer: The Myths Behind Boston’s Mookie Betts Trade Justification

“Boston did really well,” one executive told ESPN’s Buster Olney. “The Red Sox will reset fast,” said another, adding, “they’ll have money to spend in the next offseason.”

Many of these optimistic interpretations of Boston’s side of the trade are centered more in myth than reality. So as spring training begins and Betts prepares for the first non–Red Sox camp of his career, let’s tackle some of those myths and expose the rotten underbelly of Boston’s trade.

A deep dive into the financials behind the trade.


Cubs’ Anthony Rizzo: ‘Luxury tax wasn’t meant to be a salary cap, and teams are treating it like tha

MESA, Ariz. — The question to Cubs outfielder Kyle Schwarber about how money changes people wasn’t even finished when a first baseman with rabbit ears piped in from four lockers away Wednesday.

‘‘Money talks,’’ Anthony Rizzo said, smiling.

If that wasn’t a tone-setter for the start of Cubs spring training, consider it at least another voice in a growing chorus of players critical of the game’s economic squeeze on salaries — and more focused on upcoming collective-bargaining negotiations than players have been in a generation.

‘‘I think the luxury tax wasn’t meant to be a salary cap, and teams are treating it like that,’’ Rizzo told the Sun-Times. ‘‘Are you sacrificing winning a championship to be under the tax threshold? Who knows? We don’t know that.’’

Nothing that would be news to us- but still something of interest to see brought up in open discussion.

 

QLE Posted: February 13, 2020 at 12:40 AM | 0 comment(s)
  Beats: anthony rizzo, luxury tax, salary cap

Thursday, January 09, 2020

Explaining MLB’s luxury tax in relation to 2020 Phillies

The conversation around the Phillies last January was all Bryce Harper and Manny Machado.

The conversation this January is all about the luxury tax.

The Phillies are approximately $6 million below MLB’s $208 million competitive balance tax, colloquially referred to as the luxury tax.

What is the tax? What are the harms of going over? Here’s a quick explainer

 

 

QLE Posted: January 09, 2020 at 05:18 AM | 0 comment(s)
  Beats: luxury tax, phillies

 

 

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