The $170 Million Dollar Player Development Machine

By Jimmy, 12/17/2009 7:46 am

WEEI’s Alex Speier does a nice job here breaking down the Red Sox payroll as calculated by MLB when determining the Competitive Balance Tax (a.k.a. luxury tax).

The tax threshold this year is at $170 million, and after projecting assumed arbitration raises, the Red Sox are just about on the edge of that threshold.  Any other moves (Adrian Beltre, Nick Johnson, Adrian Gonzalez, etc.) would put the Sox over the limit and cause them to pay a 22.5% luxury tax on any amount above $170 MM.

In other words, when determining the cost of someone like Adrian Beltre, go ahead and multiply his salary demands by 1.225 to determine what he will really cost the Red Sox.

Notes:

This $170 million ballpark is not really uncharted territory for the Sox, as their 2007 World Championship team boasted a CBT payroll of around $165 million.  The team’s “true” payroll, as determined by places like Cot’s contracts and the number typically referenced by fans and media, will be closer to $145-$150 million.

The following significant salaries will be coming off the books after the 2010 season:

Julio Lugo’s estranged carcass – $9 million
Mike Lowell’s soon to be estranged carcass - $9 million (assuming trade rumors are accurate)
David Ortiz’ hopefully reanimated carcass – $13 million
Josh Beckett – $10.1 million (possibly re-signed)
Victor Martinez – $7.7 million (possibly re-signed)

Odds & Ends:

It’s good to be a professional athlete.  In no other circumstance would a man who resembles a bloated pelican be able to land this:

Welcome to Boston, Mrs. Lackey!

Welcome to Boston, Krista Lackey!

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