NEW YORK – Boston should be happy to pay this tax bill.
World Series champion Red Sox owes the $ 11,951,091 luxury tax due to baseball's highest payroll, according to the final calculations received from The Associated Press. The only other team to owe is the Washington Nationals, who have to pay $ 2,386,097, the second year in a row, with one bill.
With Boston over $ 40 million above the tax threshold, it was also the first team to impose a new sanction. For the 2018 season, Red Sox's top selection in the June design will drop 10 places calmly. Boston's top pick had been counted 33rd in the standings before the penalty.
The champion Boston Red Sox does not want to cut the biggest payroll in the big leagues.
In a few months Nathan Eovaldi went from under-the-radar acquisition to the October legend. But is he worth the money Boston has to spend to bring it back?
Boston has owed taxes over the course of three of its four titles in this century, paying $ 3,148,962 this year and $ 6,064,287 in 2007. The Red Sox The only other championship to have owed since the tax began in 2003 was the New York Yankees of $ 25.7 million in 2009 and the Chicago Cubs of $ 2.96 million in 2016.
First Tax This Year The threshold was $ 197 million, with payroll being paid by annual averages, including earned bonuses, cash and option adjustments, and just over $ 14 million per team. Boston's salary for the tax amounted to $ 239.5 million, surpassing the $ 237 million threshold that triggered the draft of the fine. Washington was $ 205 million.
Boston raised its payroll during spring training when it added Slugger JD Martinez, who charged $ 23.75 million and then earned $ 700,000 in bonuses while leading the leagues at 130 RBI.
Ahead On July 31, Red Sox acquired World Series MVP Steve Pearce, who raised $ 3,208,602 in wages, including a $ 50,000 MVP bonus; Pitcher Nathan Eovaldi, who added $ 720,430 and became an important part of the title run with two postseason wins and a 6-inning relief trip in World Series Game 3 against the Los Angeles Dodgers; and second baseman Ian Kinsler, who added $ 3,766,666.
San Francisco had the third highest salary of $ 195.7 million, followed by the Dodgers of $ 195 million – against $ 182 million on the opening day, the Dodgers had each paid taxes The last five seasons amounted totaled $ 149.6 million.
Tim Kurkjian says he is not surprised that the Red Sox brought back Nathan Eovaldi after his exploit in the 2018 postseason.
The Cubs were fifth with $ 193.3 million and the Yankees with $ 192.98 million – the first time the Yankees had crossed the threshold after 15 consecutive years. This resulted in taxes of $ 341.1 million.
The Yankees fell below the threshold and Dodgers reset their tax rates for 2019 and moved to a better position to pursue a talented free-agent class with Bryce Harper and Manny Machado.
Boston has owed $ 37.1 million in nine out of 16 seasons. The Red Sox paid in 2015 and & # 166 and dropped slightly more than $ 3 million in 2017. In doing so, they lowered their tax rates to their lowest levels this year. Boston paid with an effective interest rate of 28.1 percent.
Washington pays for the second season in a row and raises its total to $ 3.8 million.
Only eight teams crossed the tax threshold: Detroit paid $ 9 million during the three seasons, San Francisco $ 8.9 million for three seasons, and the Los Angeles Angels $ 927,000 in 2003. [19659002Nextyear'staxstartsat$206millionandBoston'staxrateswillrisefrom20percentto30percentoverthefirst$20million32percentto42percentthenext$20millionand625percentto75percentforanamountinexcessof$246million
Dave Dombrowski, president of Red Sox, predicted Boston would cross all three thresholds next year.
Washington's rate rises to 50 percent first, $ 20 million, 62 percent to the next $ 20 million, and 95 percent to more than $ 246 million.
Checks for the competitive equalization tax, as it is usually called, go to the Commission's office until 21 January. The first $ 13 million in tax money will be used to fund player funds, and 50% of the balance will be used to fund players' individual retirement accounts. The remaining 50 percent of the balance will be awarded to teams that do not exceed the tax threshold.
Final figures are still calculated for regular payrolls, including salaries, pro-rata shares of signing bonuses, earned bonuses and adjustments for cash transactions and options buyouts.