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Nationals Expected To Exceed Luxury Tax Threshold For Second Straight Season In '18

The Nationals are "poised to become second-time offenders" of MLB's competitive balance tax in '18, an offense that "would incur escalating penalties" against the club, according to Chelsea Janes of the WASHINGTON POST. The team's final '17 payroll figure will be around $200M, and the Nationals "will be taxed on those overages, though minimally because they are first-time offenders." They will pay 20% of their overages in taxes, "which will not amount to much, all things considered." However, after signing free agents P Brandon Kintzler and 1B Matt Adams, the projected '18 payroll "will leap to around" $210M. As second-time offenders, the team will pay 30% of their overages if they "remain over that threshold -- more if they exceed that" $197M by more than $20M, which is "not out of the question given their recent propensity to add help at the trade deadline." As the club bids for RF Bryce Harper and potentially other free agents entering '19, they will be "faced with the potential to become third-time offenders should they accumulate too much added payroll." Third-time offenders pay 50% of their overages, but the fact that they are already over the threshold for '18 "could affect the Nationals’ dealings moving forward." Willing to "spend on big names when necessary, but unwilling to spend freely, the Nationals likely won’t continue adding pieces to the point of moving into a new penalty realm by exceeding that threshold by more than" $20M (WASHINGTONPOST.com, 12/22).

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