Luxury tax implications could impact the Red Sox' signing of free agents like Craig Kimbrel this offseasonGETTY IMAGES
With MLB's luxury tax threshold for '19 set at $206M, the question is "not whether the Red Sox will spend to the point of getting hit with penalties," but rather "how far beyond the threshold they will spend," according to Alex Speier of the BOSTON GLOBE. The Red Sox' current salary commitments for '19 reportedly "already sit north" of $212M, and assuming the team wants to keep roughly $10M for in-season additions, that number "bumps up" to roughly $222M. For any spending between $206-226M, the Red Sox will get hit with a 30% tax. For spending of $226-246M, they will get taxed at 42%, and for any spending beyond $246M, they will absorb an 87% tax rate and a "draft-pick penalty." Unless the Red Sox "trade players who are currently under team control, it will be almost impossible for them to avoid the second tax tier" that takes effect at $226M (BOSTON GLOBE, 11/7). The Globe's Nick Cafardo said the Red Sox "can probably go another year of being over" the tax before they will "probably need to cut it down." Cafardo: "They can probably keep it the same or maybe elevated. All of these guys are going to get big raises in arbitration, too. They've got to be mindful of that" ("High Heat," MLB Network, 11/6).
MONEY IS NO OBJECT: In Chicago, Tony Andracki noted the Cubs are "right around" the $206M luxury tax threshold for next season. No MLB team currently has "more money committed" to their '19 team than the Cubs. Team President of Baseball Operations Theo Epstein said, "We've had a Top 6 payroll each of the last three seasons. We certainly expect to have another Top 6 payroll this season and going forward. That investment in the club by our ownership has been everything we could ask for. It's been enough to win more games than any other team the last four years." He added, "It's more than enough to win and on top of that, this is an ownership group that's poured in $750 million in private investment in fixing Wrigley Field. I appreciate and understand the desire for more every winter" (NBCSPORTSCHICAGO.com, 11/6).
WITHOUT RESTRAINT: In N.Y., Billy Witz noted Yankees Senior VP & GM Brian Cashman "declined to disclose" his budget for '19. But he "allowed that the Yankees could exceed the luxury tax threshold." Cashman: "Is it a definite line in the sand? I wouldn't say that's the case. I'd say it's a preference" (N.Y. TIMES, 11/7).
