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MLB OFFSEASON (P&C Report 2/14/23)


RIPPA

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The amount the Mets are going to pay in luxury tax this year is going to be larger than several teams collective team salaries. (It is estimated to be slightly more than $76 million)

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23 hours ago, RIPPA said:

The amount the Mets are going to pay in luxury tax this year is going to be larger than several teams collective team salaries. (It is estimated to be slightly more than $76 million)

Yow.   I wish the Marlins would spend $76m on anyone. 

I seem to remember the luxury tax compounding based on how many years you're consecutively on it.   Or did that change? 

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19 minutes ago, Dolfan in NYC said:

I seem to remember the luxury tax compounding based on how many years you're consecutively on it.   Or did that change? 

There still are - taken directly from MLB's website

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The following thresholds were put in place per the 2022-26 collective bargaining agreement:

2022: $230 million

2023: $233 million

2024: $237 million

2025: $241 million

2026: $244 million

A club that exceeds the Competitive Balance Tax threshold is subject to an increasing tax rate depending on how many consecutive years it has done so.

First year: 20 percent tax on all overages

Second consecutive year: 30 percent

Third consecutive year or more: 50 percent

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.

There’s also a surcharge threshold for clubs that exceed the base threshold by $20 million or more.

$20 million to $40 million: 12 percent surcharge

$40 million to $60 million: 42.5 percent surcharge for first year; 45 percent for each consecutive year after that

$60 million or more: 60 percent surcharge

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.

From a different MLB article

Quote

Assuming they remain above the highest threshold next year, the Mets will not only pay a 90 percent luxury tax on the overage (anything above $293 million), but their highest 2024 Draft pick will also drop 10 spots (as it will next June due to 2022 violations). It's a steep price that Cohen can afford and is willing to pay.

The 60 percent surcharge is/was informally called by the other owners the "Cohen Tax" since they knew he could/would blow past it

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Live look at Dansby Swanson, watching all these big SS deals drop:

35stjo.jpg

These contracts are crazy but more power to them if they can get them. I don't love that the league is still so top-heavy with a handful of teams having no issue going well over the luxury tax, while other teams spend as little as humanly possible. 

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10 hours ago, cubbymark said:

When they offer 25 years for a billion next year at Ohtani.... 

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Kevin Kiermaier's deal with the Blue Jays is 1 year, $9 million

That means (when you also add in the Chris Bassitt deal) - Toronto is in line to exceed the luxury tax for the first time

That being said - a lot will happen between now and the end of next season

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