Tuesday, April 24, 2018

Red Sox And Nationals Are The Only MLB Teams To Pay Luxury Tax In 2018

Just two teams will need to pay Major League Baseball's "luxury tax" this year—the Washington Nationals and your Boston Red Sox. The payroll for this year's Carmine Hose roster is $233.9 million—resulting in a tax payout of $9.4 million. The Nationals' payroll in 2018 is $201 million—meaning they will pay a $1.2 million luxury tax. Amazingly, The Bronx Embalmers are well under the $197 million tax threshold that triggers the tax ($178.8 million). Because they come under the wire, their tax rate next year will be only 20%—allowing them more flexibility in their pursuit of free agents like Bryce HarperManny Machado, Josh Donaldson and (possibly) Clayton Kershaw. Some of the other team salaries below the threshold are: San Francisco at $196.66 million, the Chicago Cubs at $183.9 million, Houston at $182.4 million, the Los Angeles Dodgers at $181.99 million. Perhaps the most frustrating element of Boston's payroll is the "dead" money they still owe this year—which comprises about $20.6 million. This is largely made up by payments to three former players: Pablo Sandoval ($18,455,000), Manny Ramirez ($2.003,389) and Allen Craig ($1,000,000).