ron883 Posted January 15, 2021 Share Posted January 15, 2021 This fangraphs article educated me on how this Competitive Balance Tax/Luxury Tax business actually works. https://blogs.fangraphs.com/a-quick-note-on-the-liam-hendriks-contract/#comments Most of you probably understood this, but for luxury tax purposes, the total dollar amount of the contract is spread evenly across the the years of the contract (the AAV). The White Sox have a team payroll of approximately 131m, but their luxury tax payroll is 160m. This is because they have so many contracts that are back loaded. Why is this great news you ask? In the future when the Sox are paying the back end of these contracts, they won't have to worry as much about the luxury tax penalty. When their payroll is exceeding 210m in the future (or whatever the luxury tax is then), they won't actually be exceeding the luxury tax. Am I reading into this correctly? The future is bright! 1 Quote Link to comment Share on other sites More sharing options...
Dick Allen Posted January 15, 2021 Share Posted January 15, 2021 7 hours ago, ron883 said: This fangraphs article educated me on how this Competitive Balance Tax/Luxury Tax business actually works. https://blogs.fangraphs.com/a-quick-note-on-the-liam-hendriks-contract/#comments Most of you probably understood this, but for luxury tax purposes, the total dollar amount of the contract is spread evenly across the the years of the contract (the AAV). The White Sox have a team payroll of approximately 131m, but their luxury tax payroll is 160m. This is because they have so many contracts that are back loaded. Why is this great news you ask? In the future when the Sox are paying the back end of these contracts, they won't have to worry as much about the luxury tax penalty. When their payroll is exceeding 210m in the future (or whatever the luxury tax is then), they won't actually be exceeding the luxury tax. Am I reading into this correctly? The future is bright! Like the Sox will ever have to pay the luxury tax. JR wouldn’t pay it with the Bulls where they lead the league in attendance, and print money. 2 1 Quote Link to comment Share on other sites More sharing options...
SoxBlanco Posted January 15, 2021 Share Posted January 15, 2021 1 hour ago, Dick Allen said: Like the Sox will ever have to pay the luxury tax. JR wouldn’t pay it with the Bulls where they lead the league in attendance, and print money. That’s kind of his point, though, if what he’s saying is correct. If there’s no chance the Sox will ever pay the luxury tax, it’s good to know the payroll can actually be higher than $210M without having to pay it. Quote Link to comment Share on other sites More sharing options...
Dick Allen Posted January 15, 2021 Share Posted January 15, 2021 35 minutes ago, SoxBlanco said: That’s kind of his point, though, if what he’s saying is correct. If there’s no chance the Sox will ever pay the luxury tax, it’s good to know the payroll can actually be higher than $210M without having to pay it. But it's a non issue at this point and the foreseeable future. The only way they will ever even be close is if they have a Bulls like run and draw 3 million a year for several years. Quote Link to comment Share on other sites More sharing options...
CaliSoxFanViaSWside Posted January 15, 2021 Share Posted January 15, 2021 The Sox are pretty much tapped out right now . There will be no Bauer . There will be no FA starting pitcher signed . If they do trade for the cost controlled guy expect one of your favorite prospects to be leaving. If they can nab anyone decent with 3 years of control without a top prospect that's what we will be getting. That being said I think it's Musgrove unless the Sox think they can get Taijuan Walker for a 2 year $15M or less contract. He's the 4th rated SP available through FA but I doubt too many here would be thrilled with him. His peripherals and statcast stuff isn't good which always indicates to me that he's a guy that mixes and matches and tries to keep hitters off balance because he lacks stuff. He's good against RHH , not so much against LHH. His slider or cutter ( it gets characterized differently by different places) is his best pitch and he seems to have settled on using his 4 seamer less though he can run it up there to 95. I do like that he had a strong second half last year which means he's all the way back from his TJ surgery. I am somewhat envious the Blue Jays picked him up for a PTBNL while the Sox were spinning their wheels going after Lynn at the trade deadline. Walker would have easily been our 3rd starter and had that game 3 start against Oakland . He had one start against Oakland 7/31/20 and gave up 1 hit , 8K and 2 walks in 7 innings. After he was traded to the Jays he started 6 games with a 1.37 ERA and 4.14 FIP . His career FIP is 4.24. Quote Link to comment Share on other sites More sharing options...
SoxBlanco Posted January 15, 2021 Share Posted January 15, 2021 (edited) 19 minutes ago, Dick Allen said: But it's a non issue at this point and the foreseeable future. The only way they will ever even be close is if they have a Bulls like run and draw 3 million a year for several years. Oh, I totally agree. I guess I was just saying it would have been better to say "like the Sox will ever get close to $200M" instead of "like the Sox will ever have to pay the luxury tax". I realize those are basically the same thing, but I'm just pointing it out for the sake of the point he was trying to make, Edited January 15, 2021 by SoxBlanco Quote Link to comment Share on other sites More sharing options...
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