Boston willing to exceed the luxury tax threshold

[Troll Daddy]

At today’s press conference to announce the signing of Hanley Ramirez, Red Sox owner John Henry told reporters, including WEEI.com’s Alex Speier, that his team is willing to exceed the $189MM luxury tax threshold in 2015. “The way it’s structured we can blow through one year,” Henry said. “Again for next year we have tremendous flexibility so we could go could through for one year and not overly effect us.”

Are you listening Mr. Moreno?

MLBTraderumors.com

[NachoPop]

Out of interest, how often are the tax thresholds due to change?

[wopphil]

This wouldn't be a good year for the Angels to top the tax threshold, as the commitments for 2016 are still quite extensive. It is one thing to top the limit for one season, but quite another to do it in successive seasons. But it wouldn't shock me to see the team top the threshold next off-season, with so much money coming off the books after 2016 (Weaver, Wilson, Aybar, Smith).

[wopphil]

Plus, there is a lot of pitching set to hit the market next year, so why not roll with what won us 98 games in 2014 and reevaluate next off-season if need be.

[Second Base]

I think if you could guarantee Arte that the crossing the threshold would result in making it to the World Series, he'd do it. As it stands, we've seen from previous years that more money does not necessarily equal more wins.

[Hollyw00d]

If there's a reasonable, intelligent, and rational plan that requires going over the tax, then fine.

but going over just for the sake of going over to appease the fans or whatever is ****ing stupid, imo

[Guest]

This wouldn't be a good year for the Angels to top the tax threshold, as the commitments for 2016 are still quite extensive. It is one thing to top the limit for one season, but quite another to do it in successive seasons. But it wouldn't shock me to see the team top the threshold next off-season, with so much money coming off the books after 2016 (Weaver, Wilson, Aybar, Smith).

 

As of the 2012-2016 competetive bargaining agreement, the biggest problem is the luxury tax is not so much the tax itself (a surcharge on spending above a fairly high threshold), as the fact that teams that are over the luxury tax threshold by any amount for multiple consective years must forfeit shares of money they are owed from MLB revenue sharing program -- in effect this behaves like a fixed fine of up to $30M/year.

 

1st year: 17.5% tax (on amount about threshold)

2nd year: 30% tax; forfeit 25% of MLB revenue sharing funds

3rd year: 40% tax; forfeit 50% revenue share

4th year: 50% tax; forfeit 75% revenue share

5th+ year: 50% tax; forfeit 100% revenue share

 

This wouldn't be a good year for the Angels to top the tax threshold, as the commitments for 2016 are still quite extensive. It is one thing to top the limit for one season, but quite another to do it in successive seasons. But it wouldn't shock me to see the team top the threshold next off-season, with so much money coming off the books after 2016 (Weaver, Wilson, Aybar, Smith).

 

IMO Angels should go for broke in 2015-2016, then dip under the tax and rebuild in 2017.

Going over the luxury tax for one or two seasons is not a big deal. 3 or more consecutive seasons over the threshold results

[Docwaukee]

If Arte has some money burnin' holes in his pockets then he's better off trying to get some additional international talent this year and going over the CBT threshold next year.  One of the keys is going to be what you can do with Hamilton.  Right now he's a sunk cost, but if you can move him next offseason and eat about 30mil then you could potentially take the entire cap relief of that in 2016 or at least the majority of it to give you a lot more flexibility.  

[Angel Oracle]

If Pujols (mid .800s OPS), Hackilton (low .800s OPS), and Nibs (high 3.00s ERA) would produce like they are supposed to, the Halos wouldn't need to sign a big name to big money.

Edited November 26, 2014 by Angel Oracle

[nando714]

It's not our money!

[laagamer]

I just want to win.

Whatever that entails, get it f*cking done!

[Vegas Halo Fan]

At today’s press conference to announce the signing of Hanley Ramirez, Red Sox owner John Henry told reporters, including WEEI.com’s Alex Speier, that his team is willing to exceed the $189MM luxury tax threshold in 2015. “The way it’s structured we can blow through one year,” Henry said. “Again for next year we have tremendous flexibility so we could go could through for one year and not overly effect us.”

 

The only reason they are able to do what they are doing is that the Dodgers ate the last batch of bad contracts they handed out.

 

It has been reasonably well proven that handing out megabuck contracts isn't the way to go. We already have more than our share of overpaid underproducers.

Edited November 27, 2014 by Vegas Halo Fan

[Troll Daddy]

The only reason they are able to do what they are doing is that the Dodgers ate the last batch of bad contracts they handed out.

It has been reasonably well proven that handing out megabuck contracts isn't the way to go. We already have more than our share of overpaid underproducers.

Which bad contracts are you referring too?

[Stradling]

Troll Daddy doing what Troll Daddy does. My guess is he is talking about Albert, and Josh, not to mention CJ.

[Troll Daddy]

Troll Daddy doing what Troll Daddy does. My guess is he is talking about Albert, and Josh, not to mention CJ.

I was referring to the Dodgers ... thxs

[Vegas Halo Fan]

And on the other side, maybe the names Josh Beckett and Carl Crawford ring a bell. Adrian Gonzales has been a decent producer, but not $20M+ per year worth.

Edited November 28, 2014 by Vegas Halo Fan

[eligrba]

Which bad contracts are you referring too?

 

Really?

[Troll Daddy]

And on the other side, maybe the names Josh Beckett and Carl Crawford ring a bell. Adrian Gonzales has been a decent producer, but not $20M+ per year worth.

Dodgers accomplished what they wanted to do. They bought in some star power which made them relevant again. They brought fans to the ballpark and made the playoffs two years in a row.

Btw Gonzalez led baseball in RBI's and played gold glove caliber defense and Crawford had a bounce back season.

[Vegas Halo Fan]

There are a lot of years left on those deals, especially Crawford's.

[Troll Daddy]

There are a lot of years left on those deals, especially Crawford's.

Crawford has 3 years left and AGon has 4 years left . You wouldn't trade Pujols and Hamiltons contracts for those two players?

Like I said earlier ... The Boston trade worked out for both teams.

[Stradling]

Crawford has 3 years left and AGon has 4 years left . You wouldn't trade Pujols and Hamiltons contracts for those two players?

Like I said earlier ... The Boston trade worked out for both teams.

Those two players, plus Crawford, weren't acquired this year, so the fact that they now only have three and four years left doesn't mean too much. Beckett and Crawford both were awful contracts that came over to the Dodgers. A-Gon's contract wasn't as bad.

[Stradling]

I am sure the Dodgers love the fact that they paid:

$34 million for Beckett for his 6-11 Record and his 4.5 ERA the last two years

and

$42 million for Crawford and his .290 average his average of 7 homers and 19 SBs.