The Red Sox on Tuesday officially introduced 3B Pablo Sandoval and LF Hanley Ramirez, and Owner John Henry said that he is "willing to go over" MLB's $189M luxury tax threshold, according to Nick Cafardo of the BOSTON GLOBE. Henry said, "The way it’s structured we can blow through one year. Again, for next year we have tremendous flexibility. So we could go could through for one year and not overly affect us.” Cafardo notes Henry attended news conferences for each player, which "were held more than five hours apart." Henry spoke about "his perceived change of direction in philosophy," though he said that his words last spring about not giving long-term contracts to players more than 30 years old "were in reference to a study on the subject." Henry: "That was really overblown because of one comment quoting a study which says more about the structure of major league compensation. That doesn’t mean you’re not going to go out and sign 30-year-old players. You can’t win unless you engage in free agency. We always engage in free agency" (BOSTON GLOBE, 11/26). ESPN BOSTON's Gordon Edes noted other teams may "fret about the risk" of putting $183M in guaranteed money into two players. But Henry said, "The risk of doing nothing was much larger." He added, "The risk is avoiding free agency. You can't put together a winning ballclub just through the minor league system. To me that would be really risky. ... If we can win the World Series every other year and finish last every other year, I'd take that" (ESPNBOSTON.com, 11/25).
I'M THE TAXMAN: ESPN BOSTON's Edes noted the Red Sox on Tuesday added $41M to their payroll, "as calculated for luxury tax purposes." But because the Sox have "stayed under the threshold for three consecutive years, they would not absorb" a huge tax hit: 17.5% on the amount they go over the threshold, compared to 50% for multiple offenders. The Red Sox' willingness to go over the threshold is "cushioned by the fact that even after signing Ramirez and Sandoval," they have only $101M in salary obligations for '16. Henry: "Because of the trades we made in '12 and '14, we're able to have this kind of financial flexibility and still go after pitching. We're in extremely good shape, I think" (ESPNBOSTON.com, 11/25).
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| Henry admits the Red Sox have "gotten burned" with huge free agent contracts |
JUST ROUNDING SECOND: In Boston, John Tomase writes the Red Sox are "not done spending yet ... by a longshot." Henry "doesn’t like losing, and he’s not going to let a little thing like the luxury tax stand in his way." Henry's willingness to go over the threshold is the "strongest signal yet that the Red Sox will still be major players this winter even after taking the two best hitters off the market." Henry: "I understand because so much was made as if we were never going to have a long-term contract. We were never going to sign a 30-year-old. I thought that was a little much to assume.” He added, "You don’t want to go crazy in free agency with long-term, huge contracts. We’ve gotten burned doing that. These deals made sense to us. Especially at this point. It gives us tremendous flexibility.” Tomase writes of Henry, "You have to give him this -- even when his teams don’t perform, it’s not because he refused to spend. He hasn’t cheated the fans, and he sounds particularly anxious to restore the glory of 2013" (BOSTON HERALD, 11/26). Meanwhile, MLB.com's Ian Browne noted Henry "made it clear that he isn't going to hold back the front office when it comes to investing properly in the starting rotation" (MLB.com, 11/25). Red Sox GM Ben Cherington said of Sandoval, "Pablo was a primary target of ours to start the offseason. ... He really embodies a lot of what we care about. This is a guy that has been a big winner" (MLB.com, 11/25).
HEY, BIG SPENDERS: In Boston, Dan Shaugnessy writes of the Red Sox' willingness to go over the threshold, "Wow. Now we're talking." It is "OK now to applaud the Sox for spending money and trying to make their team better and more interesting" in '15. Shaughnessy: "What we’ve seen this week is more like the Red Sox of the old days. ... Let's welcome the Red Sox back to relevancy." This offseason is "way more entertaining than what we saw on the field" in '14 (BOSTON GLOBE, 11/26). Also in Boston, Michael Silverman writes in an offseason that "feels almost decadent already, the Sox have discovered the joys of splurging, as long as it’s on their terms." The Red Sox "believe they are not throwing money around like drunken sailors." They "may not want to advertise that they’re living in the fast lane, but the Sox know they’re never going to get anywhere without stepping on the gas when the coast is clear" (BOSTON HERALD, 11/26). MLB.com's Richard Justice wrote this "represents a change in tactics" for the Red Sox. Justice: "Yep, they may regret them. That's life. What was their alternative? To do nothing? To risk finishing last again? Deal with it. The Red Sox are doing what smart organizations always do. They adapted and adjusted. In the end, it's about winning" (MLB.com, 11/25).
EARLY CHRISTMAS PRESENT? In Providence, Tim Britton writes the perception that the Red Sox were "done with the big-money, long-term contract was overblown." They were "going to spend a lot of money one day; it just wasn’t supposed to be this soon." Britton: "Do not consider this a change in philosophical approach. Consider this an adjustment to the market and a gamble on two different players for two different reasons" (PROVIDENCE JOURNAL, 11/26). MLB.com's Gregor Chisholm wrote the Red Sox' signings "signal the organization intends to go all-in to compete next season" (MLB.com, 11/25).
BALANCING ACT: In Cleveland, Paul Hoynes writes there is "never going to be competitive balance" in MLB. This is "what happens when there is no salary cap." The teams that "can afford to burn money do it whenever necessary," while the teams that cannot "have no choice but to stand and watch" (Cleveland PLAIN DEALER, 11/26).
