Baseball for the Thinking Fan

Login | Register | Feedback

btf_logo

News

All News | Prime News

Old-School Newsstand


Contributors

Jim Furtado
Founder & Publisher

Syndicate

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

Tuesday, November 12, 2019

Dodgers to shop for starting pitchers, right-handed power as offseason begins

Jumping ahead to points of interest:

How the Dodgers operate this offseason could again depend on their willingness to spend significant money and perhaps exceed the competitive tax threshold — a soft cap that has hardened not only in Los Angeles but in big markets across the majors in recent years. Only the Chicago Cubs, Boston Red Sox and Yankees will pay a tax for the 2019 season, and all three franchises are striving to avoid the penalty.

Despite playing in the second-largest market in the country, drawing the highest attendance in the majors the last seven seasons, and securing a television contract that pays the organization $8.35 billion over 25 years, the Dodgers have not surpassed the line since 2017.

A document prepared for potential investors before the 2017 playoffs reviewed by the Los Angeles Times outlined a plan to keep the Dodgers’ payroll below the threshold through at least 2021 after they paid a luxury tax in each of the first six seasons of the Guggenheim group’s ownership. The projections were not binding, but the Dodgers have remained under the line through two of the four projected seasons.

In January, team President Stan Kasten maintained there were important baseball reasons to stay under the threshold beyond avoiding the 20% tax, which include keeping draft picks and international bonus pool money. In February, chairman Mark Walter insisted there wasn’t a directive to remain below the threshold.

I have to wonder if this maneuvering will have an impact- especially as the Dodgers keep seeming to fall apart in October…..

 

QLE Posted: November 12, 2019 at 12:28 AM | 2 comment(s)
  Beats: dodgers, luxury tax

Saturday, November 09, 2019

Giants won’t have any tax concerns as they dive into free agency

SAN FRANCISCO—You almost needed an accounting degree to fully understand all the offseason moves the Giants made two years ago.

The trade for Evan Longoria included nearly $15 million coming back from the Rays. The Pirates covered $2.5 million of Andrew McCutchen’s salary. When Tony Watson walked into the Scottsdale Stadium clubhouse a few days into spring training, he did so on a complicated contract that was structured to keep the Giants under the competitive balance tax line.

The CBT was mentioned often by team officials for a couple of years and was constantly lingering in the background, a penalty that colored many of the organization’s moves. That’s still the case for several teams around baseball—most notably the Red Sox, who might trade superstar Mookie Betts because of payroll concerns—but as the Giants enter Farhan Zaidi’s first full offseason in charge, they at least know they don’t have payroll concerns.

After paying the tax for three consecutive seasons, the Giants dipped just under in 2018 and didn’t come close last year. While exact numbers are not available to the public, the Giants were estimated to have a tax number of about $177 million, according to Cot’s Contracts, putting them well below the $206 million threshold. They’ll open this offseason with even more breathing room.

Mind you, if both the players they made qualifying offers to accept them, that breathing room will go away rather quickly…..

 

QLE Posted: November 09, 2019 at 12:31 AM | 0 comment(s)
  Beats: free agency, giants, luxury tax

 

 

News

All News | Prime News

Old-School Newsstand


BBTF Partner

Dynasty League Baseball

Support BBTF

donate

Thanks to
ERROR---Jolly Old St. Nick
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogUS-based pro sports leagues monitoring coronavirus outbreak
(4457 - 4:53pm, Apr 06)
Last: The Yankee Clapper

NewsblogPosnanski: Baseball 100 Rules
(1234 - 4:51pm, Apr 06)
Last: TomH

NewsblogThese 10 legends' careers ended with a reunion
(12 - 4:34pm, Apr 06)
Last: puck

NewsblogOT - NBA Thread 2020
(2044 - 4:27pm, Apr 06)
Last: tshipman

NewsblogPrimer Dugout (and link of the day) 4-6-2020
(7 - 3:59pm, Apr 06)
Last: Pasta-diving Jeter (jmac66)

NewsblogD-Backs Minority Owners Suing Managing Partner Ken Kendrick over Buyouts
(2 - 2:53pm, Apr 06)
Last: bobm

NewsblogPirates pitcher Steven Brault releases showtunes album ‘A Pitch at Broadway’
(63 - 2:38pm, Apr 06)
Last: Never Give an Inge (Dave)

NewsblogWho Would You Build an MLB Team Around in the 2020s?
(22 - 2:35pm, Apr 06)
Last: Randomly Fluctuating Defensive Metric

NewsblogBaseball Question of the Day: Which historical game would you want to see?
(62 - 1:23pm, Apr 06)
Last: winnipegwhip

NewsblogCoronavirus: MLB debating playing games at spring training ballparks without fans, per report
(11 - 12:47pm, Apr 06)
Last: the Centaur Nipple Paradox (CoB).

Hall of MeritMost Meritorious Player: 1926 Discussion
(6 - 9:04am, Apr 06)
Last: DL from MN

NewsblogThis Day in Transaction History: Yankees acquire Bucky Dent
(2 - 8:30am, Apr 06)
Last: Howie Menckel

Hall of Merit2021 Hall of Merit Ballot Discussion
(206 - 2:01am, Apr 06)
Last: bjhanke

NewsblogAn Activist and a Bookworm, Sean Doolittle Is the Conscience of Baseball
(25 - 11:06pm, Apr 05)
Last: Howie Menckel

NewsblogJudge nixes fantasy players' lawsuit over sign-stealing scandal
(12 - 10:51pm, Apr 05)
Last: Howie Menckel

Page rendered in 1.0247 seconds
69 querie(s) executed