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Astros on verge of rare trip above luxury tax after Josh Hader signing

The Astros have signed P Josh Hader to a five-year, $95M deal, which “sharply raises the Astros’ chances of exceeding the competitive balance tax in 2024," according to Matt Kawahara of the HOUSTON CHRONICLE. The team has exceeded the first tax level "just once” under owner Jim Crane, but the Hader deal “marks a deviation” for the team. It is the largest deal "by far given by the team to a free agent in Crane’s tenure.” The previous high was $58.5M that 1B Jose Abreu signed for last offseason. Payroll projections placed the Astros “near or just above the first tax threshold before the addition of Hader,” but the tax is “not calculated until after a season" (HOUSTON CHRONICLE, 1/19).

RIGHT GUY, BUT WHAT DOES FUTURE HOLD? MLB Radio’s Kevin Frandsen noted the Astros going over the luxury tax threshold “had to be for a guy” like Hader. He said Astros GM Dana Brown likely talked to owner Jim Crane before reaching the deal and “and let him know, ‘This is our guy, this is it. We’re going to go over. Here’s our tax money. What’s our next move?’” However. MLB Radio’s Steve Phillips said the Astros “probably won’t be over (the tax) two years in a row.” That could mean that either 2B Jose Altuve or 3B Alex Bregman, two franchise stalwarts heading into their last years under contract, “aren’t coming back” (“The Leadoff Spot,” MLB Radio, 1/22).

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