While financial terms of the deal aren’t yet clear, the signing of Wacha could come with notable repercussions with regard to the luxury tax. San Diego is currently less than $7MM away from the third tier of luxury penalization, which kicks in at $273MM. If the Friars exceed that point, they’ll begin to be taxed at a 75% rate for any money spent up to $293MM (rather than the 45% rate at which they were taxed on the previous $20MM spent). That’s a small slap on the wrist by itself, but stepping into the third bracket of luxury penalties also pushes a team’s top pick in the next year’s draft (i.e. 2024) back by ten places. The team’s league-allotted bonus pool is also inherently reduced, in conjunction with the diminished slot value of that pick.