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Posted


MLB.com wrote:
Each year, clubs that exceed a predetermined payroll threshold are subject to a Competitive Balance Tax -- which is commonly referred to as a "luxury tax." Those who carry payrolls above that threshold are taxed on each dollar above the threshold, with the tax rate increasing based on the number of consecutive years a club has exceeded the threshold. A team's Competitive Balance Tax figure is determined using the average annual value of each player's contract on the 40-man roster, plus any additional player benefits.



The threshold was $189 million from 2014-16, but the following increases were put in place per the 2017-21 Collective Bargaining Agreement:



2017: $195 million*



2018: $197 million



2019: $206 million



2020: $208 million



2021: $210 million



*For 2017 only, clubs that exceeded the threshold paid the average between what their luxury tax was under the 2017-21 Collective Bargaining Agreement rules and what it would have been per the previous CBA.



A club exceeding the Competitive Balance Tax threshold for the first time must pay a 20 percent tax on all overages. A club exceeding the threshold for a second consecutive season will see that figure rise to 30 percent, and three or more straight seasons of exceeding the threshold comes with a 50 percent luxury tax. If a club dips below the luxury tax threshold for a season, the penalty level is reset. So, a club that exceeds the threshold for two straight seasons but then drops below that level would be back at 20 percent the next time it exceeds the threshold.



Clubs that exceed the threshold by $20 million to $40 million are also subject to a 12 percent surtax. Meanwhile, those who exceed it by more than $40 million are taxed at a 42.5 percent rate the first time and a 45 percent rate if they exceed it by more than $40 million again the following year(s).



Beginning in 2018, clubs that are $40 million or more above the threshold shall have their highest selection in the next Rule 4 Draft moved back 10 places unless the pick falls in the top six. In that case, the team will have its second-highest selection moved back 10 places instead.


So if the Mets have a payroll of $211 million this year, the penalty would only be $200,000. Therefore, going "slightly" over the threshold isn't a big deal, but it does set you up for larger penalties down the road. Maybe the Mets want to stay under this year, knowing that with Cano coming back they're very likely to be over next year. But I think that if the extend Lindor (increasing his AAV over the $22.5 million it's currently at) and/or Conforto, combined with a possible signing of Brad Hand, they're likely to go over anyway. In that case, $25 million to Springer would have actually cost them $30 million, in addition to potentially marginalizing Dominic Smith.



The other wild card in this is that the current CBA, with its rules and its thresholds, expires this year. There may not even be a luxury tax in 2022 and beyond, and if there is, the thresholds and the penalties might be very different. I expect the players will demand a requirement that clubs have a minimum payroll to counter the luxury tax.


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Posted


I wonder if Cohen was required to make an off-the-record promise not to exceed the luxury tax as a condition of his approval.


Posted


That would be something, huh?



I wouldn't put it past folks. But to be introduced right into the collusion game just as you're about to join the club is the stuff of drama.


Posted



Frayed Knot wrote:

That's up to him and his accountants.


Doesn't mean that as a fan, you can't root for or against. It's also up to Cohen and his accountants whether or not to set the budget at $90M, as it would be up to the owner of any baseball team and his accountants whether or not to set the budget at $90M. Or $200M. Or $250M


I hope for the team to be well run both on and off the field. That's not the same thing as rooting for the payroll of the 25-man roster to be at of above any specific number.


Posted


Frayed Knot wrote:


Frayed Knot wrote:

That's up to him and his accountants.


Doesn't mean that as a fan, you can't root for or against. It's also up to Cohen and his accountants whether or not to set the budget at $90M, as it would be up to the owner of any baseball team and his accountants whether or not to set the budget at $90M. Or $200M. Or $250M


I hope for the team to be well run both on and off the field. That's not the same thing as rooting for the payroll of the 25-man roster to be at of above any specific number.


Sometimes, it's impossible to separate the two. Anyone who, for example, was hoping that the Mets would've signed Springer was necessarily rooting for the Mets to exceed the luxury tax, whether they realized it or not.


Posted


Is JBJ just a cheaper, left-handed version of Lorenzo Cain nowadays? I'm thinking I might prefer JBJ to Cain and devote some $$ elsewhere (3B, pen, that asshole Bauer). There should be plenty of offense in the Mets outfield. They just need someone to reliably catch the ball in center.


Posted


Edgy MD wrote:

WAIT!! Jon Bon Jovi is in talks with the Mets?!!


No, silly. Jackie Bradley, Jr. He's a runaway from the Red Sox. He comes much cheaper than Springer, whom the Mets seemed to shy away from because they didn't want to be livin on a player. When asked why he didn't want to re-sign with Boston, JBJ said "It's my life". ¯\_(ツ)_/¯


Posted


There are things I like about Bradley, but his lefthandedness might make him a poor fit. I'd keep his agent on my Contacts list for now.


Posted


Maybe we can ask him to bat right handed instead.



Actually, I think I'd rather have an outfield of Smith, Nimmo, and Conforto, accepting the loss of defense, than making Smith a spare part and losing his bat.



There are probably metrics that would say if this is a good or bad idea, but I don't have a handle on all these newer stats. Not that I disbelieve them, I just don't have the motivation to try to understand them.


Posted


I'm with Ben Grimm on this. I'd rather see Smith play every day and Nimmo flail around in CF than have to keep either Dom or Pete Alonso out of the lineup every day.


Posted


I mean, I like it.



Our pitchers might disagree, to a man. As might anyone looking at our bottom-5 outfield defense/plethora of flyball-prone pitchers.


Posted


I think JBJ would need a lot more ABs, but Almora or some other Juan Lagares type might be ok for this team, getting a start once a week and playing lots of late-inning CF.


Posted


If JBJ truly has four teams sniffing around him then he's unlikely to have to settle for the part-timer/defensive specialist role I'm envisioning for him as a NYM.

On the other hand, he's not a terrible hitter -- .247/.331/.438 (101 OPS+) from 2015 thru 2020 is more than fine for an elite glove at that position -- and

mixing four guys into three positions (closer to 3-1/2 really with the occasional DH slot and Dom spelling Pete at 1B) can be worked out, although you do create

the issue of trying to platoon four lefty bats.


Posted


Edgy MD wrote:

It's true. When he runs down a ball, he holds on to what he's got.


Always.

Later


Posted


Edgy MD wrote:

Whenever this thread pops up, I keep worrying that something happened to Centerfield the forumite.




I'm fine. I was wearing a mask on January 6 so no ones identified me yet.



And I know what you're thinking. A mask? What an idiot. They don't work. Lol. Don't worry. It was a Zorro mask.


  • 2 weeks later...
Posted


=Centerfield post_id=55619 time=1612707277 user_id=65]
I don't know that he's even as good as Lagares.

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