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MLB Franchise Notes: Giants Will Be Forced To Pay Luxury Tax For Breaking New Threshold

In S.F., Henry Schulman noted the Giants for the third consecutive season "will be forced to pay a luxury tax for spending more than the collectively bargained threshold." Their payroll "will rise above" $200M for the first time in '17 after signing P Mark Melancon to a four-year, $62M deal earlier this week. They will have to pay a 50% tax on any spending over $195M. The Giants were "forced to negotiate" with Melancon while "not knowing what the threshold would be" while the new CBA was being finalized. Giants President & CEO Larry Baer: "We made the decision that we’ll be in the (competitive-balance tax). Mark is worth it, and we’ll pay the tax. One of the prices of getting Mark was paying the tax as well" (SFGATE.com, 12/6).

MOVES IN THE MAKING
: The N.Y. Post's Joel Sherman reports the Rockies today agreed to terms with LF Ian Desmond on a five-year, $70M deal (TWITTER.com, 12/7). The news comes after the DENVER POST's Patrick Saunders notes there is "evidence the Rockies are ready to make a big move" when it comes to the team's payroll. Rockies GM Jeff Bridich said that he and Owner Dick Monfort are "working on the Rockies' blueprint together." Bridich: "We are totally in lockstep on all of this. Dick and I communicate every single day, literally." The Rockies finished the '16 season with a payroll of about $120.5M, which ranked 19th in the majors. With the team "believing they are on the verge of contention, those numbers should improve" (DENVER POST, 12/7).

CAN'T KEEP UP
: In Pittsburgh, Travis Sawchik noted dollars "continue to be an issue for the Pirates." From '14-16, the average per-year contract of a free agent starting pitcher increased 105%, from $7.1M to $14.6M. During that three-year span, the Pirates' "opening day payroll increased" 39%, from $71.9M to $99.9M. Sawchik: "Quite simply, the starting pitching market is outpacing the growth of the Pirates' payroll" (TRIBLIVE.com, 12/6).

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