2010 Red Sox Salary (and Luxury Tax)

[Imperial59]

Today, the Red Sox came to terms with their final arbitration eligible player, Jeremy Hermida. So we finally have an accurate idea of what the team's salary will be for next year. Hermida's one year, non-guaranteed contract bring the amount of money we have committed to players to $165,820,833. But that only includes the 25 players on the Red Sox 40-man who are making more than the league minimum. Even if the Sox were to have a player making the league minimum at every other position on their 40-man roster, and none of their big name players reach any incentives in their contracts, that would mean they would be over the Luxury Tax Treshold by $1,820,833.

 

However, there are a few things to remember here. First of all, a team's salary for the purpose of the luxury tax, is the average team salary over the entire season. There are a variety of ways in which the Red Sox can remain under the luxury tax threshold next year.

 

1. They could trade Lowell, and get another team to take on a portion of his salary. This seems like a likely move for the Red Sox.

 

2. They could cut Jeremy Hermida in spring training, and since he doesn't have a guaranteed contract, they would only be liable for 30-days pay. However, they would have to be able to demonstrate that Hermida was statistically inferior to the average player in Spring Training or the Player's Association would likely file a grievance which would lead to the Red Sox having to pay all of Hermida's 2010 salary and Hermida would become a free agent.

 

3. They could make a variety of other moves to shed salary. Trading Papelbon, Beckett, Matsuzaka or Varitek are some of the more likely options.

 

So as if now, things could go either way. We'll have to wait and see whether the Red Sox will have to pay the luxury tax for 2010. But as of now, it seems like they could stay under the luxury tax threshold if it was something that was really important to them.

[Spudboy]

$166.Mil for 25 or 40 employees is obscene.

[RedSoxRooter]

they would be over the Luxury Tax Treshold by $1' date='820,833[/b'].

 

The penalty for them (since they've been over 3 times before) is 40% of what they exceed the threshold by. So in Red Sox terms, even if they go over the limit by 10 million, they'd only pay about 4 million in tax. They're willing to pick up 9 million on Lowell's contract, so I don't think paying a tax that "small" would really bother them.

 

As of the 2009 season only the Boston Red Sox, the Los Angeles Angels of Anaheim, the Detroit Tigers, and the New York Yankees have paid any luxury tax. Over 95% ($164.1 million) of tax payments have come from the Yankees, and they have been subject to six of the eleven occasions the tax has been implemented.

 

[jacksonianmarch]

The big question is about the lux tax for 2011. If they stay over the lux tax this season, then they will be penalized by 40% instead of 22% next season. And if they make a run at Mauer, then they will be over that number

[Imperial59]

The big question is about the lux tax for 2011. If they stay over the lux tax this season' date=' then they will be penalized by 40% instead of 22% next season. And if they make a run at Mauer, then they will be over that number[/quote']

 

It probably won't be an issue considering they have $82 million in salary coming off the books next year before arbitration and the only player who will likely receive a large raise is Ellsbury who goes to arbitration for the first time. The $23 million they have coming off the books from players they won't have to replace like Lowell, Lugo and Wagner should cover most, if not all of Mauer's salary if they were to sign him. Besides, they luxury tax threshold goes up by another $8 million next year.

 

You've been making a big deal about the Red Sox going over the luxury tax, but it's not like they're going to go over the luxury tax threshold by $50+ million like the Yankees. If they go over, they'll probably have to pay $4 million at most.

[Dojji]

For Joe Mauer, a then 28 year old catcher with every conceivable catching tool, the Red Sox would go over the Luxury Tax and be grateful it's not a hard cap. I'm 100% positive.

 

Imperial, are you counting Beckett coming off the books as part of that $82M? Because it's entirely possible we will extend Beckett, and fairly generously at that. In fact, I hope they do.

[Imperial59]

For Joe Mauer' date=' the Red Sox would go over the Luxury Tax and be grateful it's not a hard cap. I'm 100% positive.[/quote']

 

Yeah, I'm pretty sure as well. But I doubt that they'd have to. Between Ortiz, Lowell, Beckett, Martinez, Beltre, Varitek, Lugo and Wagner, the Red Sox will have $70 million coming off the books next year. If you figure it takes something like $18 million per year to resign Beckett, $20 million a year to sign a guy like Carlos Pena to play first and $10 million to sign a decent DH, that leaves the Red Sox $32 million to sign Mauer and address various other needs. And the cap will go up by another $8 million next year as well.

 

The Sox shouldn't have any trouble staying under the cap next year unless they go on the biggest spending spree in baseball history. They'd have to add more in yearly salary than the Yankees did last year.

[Keeper]

Mauer isn't going anywhere. He likes playing in his home state, and the Twins know that he's a franchise player.

[Imperial59]

Mauer isn't going anywhere. He likes playing in his home state' date=' and the Twins know that he's a franchise player.[/quote']

 

There certainly is a good chance that he'll never reach free agency. But if he does make it to free agency, I doubt the Twins would be able to pay the $25 million a year he'd command.

[kreinbihl34]

Yeah' date=' I'm pretty sure as well. But I doubt that they'd have to. Between Ortiz, Lowell, Beckett, Martinez, Beltre, Varitek, Lugo and Wagner, the Red Sox will have $70 million coming off the books next year. If you figure it takes something like $18 million per year to resign Beckett, [b']$20 million a year to sign a guy like Carlos Pena[/b] to play first and $10 million to sign a decent DH, that leaves the Red Sox $32 million to sign Mauer and address various other needs. And the cap will go up by another $8 million next year as well.

 

The Sox shouldn't have any trouble staying under the cap next year unless they go on the biggest spending spree in baseball history. They'd have to add more in yearly salary than the Yankees did last year.

 

There is no way Carlos Pena will even break 15 million on the open market

[Imperial59]

There is no way Carlos Pena will even break 15 million on the open market

 

Yeah, you are right. I really didn't realize how far he's fallen. I suppose he'd make a good DH option for about $12 million though.

[jacksonianmarch]

Pena could reach 15 million, especially when you factor in his good defense. But for a team like the sox who already have good D at 1b, there isnt much of a need. There are plenty of players who will perform a tick lower offensively than Pena who'd be much cheaper in the DH role. Hell, the Twins just signed Jim Thome and he put up almost the exact same OPS as Pena

[jacksonianmarch]

There certainly is a good chance that he'll never reach free agency. But if he does make it to free agency' date=' I doubt the Twins would be able to pay the $25 million a year he'd command.[/quote']

 

The Twins are running out of time. Once the season starts, it is incredibly hard to get extensions done. If the end of 2010 comes and Mauer isnt extended, then he's gone. Once the Yanks and the Sox start flashing $200 million contracts at him, he'd be willing to move on from Minnesota. Hell, he could buy himself half the state when he leaves his next stopping ground. The only way the Twins could get Joe would be with a massive extension with a lot of backloaded money and something like a piece in the ownership pie after he retires.

[Dojji]

I agree. Mauer is too much of a good thing for Minnesota. Unless their new stadium really helps their revenue problems I'd say it's 50-50 Mauer moves on, and it's only 50-50 as opposed to a sure thing because of Mauer himself maybe being willing to cut the Twins a generous deal to stay -- there has been a fair bit of speculation there.

[Dojji]

For the record, I'd go $12-15 mil for Carlos Pena next offseason, slide him into Beltre's spot in the lineup when Adrian moves on next year, and play Youkilis at third base. The defense will be worse than Beltre-Youkilis, but the offense will be very, very much better.

[Palodios]

I wouldn't put money on seeing Beckett and Mauer on the same team in 2011. The sox are just as likely to go with Lee/VMart. Mauer is a longshot, with the Twins wanting to keep him, and the Yankee being out a catcher.

[redsoxrules]

Mauer isn't going anywhere. He likes playing in his home state' date='[/b'] and the Twins know that he's a franchise player.

 

and you know this how?

 

Obviously Mauer is going to say to the media we wants to stay in Minny and say he LOVES to play there

 

Money talks and if the Twins cant get him what he wants he'll be gone

[Keeper]

and you know this how?

 

Obviously Mauer is going to say to the media we wants to stay in Minny and say he LOVES to play there

 

Money talks and if the Twins cant get him what he wants he'll be gone

 

I heard Mauer speak in Sarasota. He sounded sincere to me. When he signs an extension with the Twins, since I'll probably forget about this, here is a preemptive "I told you so."

[Palodios]

Recently someone cited an article about the twins increasing their payroll because of the new stadium. Also, Mauer signed a very club friendly contract in the past. He was born in Minnesota, he went to high school in Minnesota, and has only played for Minnesota. He has spent his entire life in Minnesota. The question is, is it really worth it for him to move from his home for a few million when he's already filthy rich? They've won the division 5 times in since 2002, so its not like he'll never have a chance at a World Series ring.

[TheMino007]

I read on ESPN that Mauer is working out a 10 year extension with the Twins.

[Spudboy]

I read on ESPN that Mauer is working out a 10 year extension with the Twins.

 

Have you been sleeping for the last few days?

[Dojji]

This rumor has such life because it's in character for both parties.

 

Even though it's false at this point I really expect the Twins to get something done long-term.