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UPDATE: The Red Sox are over the luxury tax threshold

Jul 17, 2010, 6:02 PM EDT

UPDATE: Buster Olney of ESPN.com hears that despite today’s news about exceeding the luxury tax threshold, the Red Sox are still working under the same parameters they always have. In other words, if the team has a chance to acquire a player that can help them get to the playoffs, they will do it. Olney concludes by saying it would make “no sense” to refuse to make a move due to a “relatively small” luxury tax given their current investment in the team.

After giving it some thought, I have to agree with Buster. In fact, with the signings of John Lackey, Mike Cameron and Marco Scutaro, among others, the Red Sox actually increased their payroll roughly 38 percent from last season — from $121,745,999 million in 2009 to $168,109,833, according to Cot’s Contracts. And this is during a time when player salaries are actually going down. They have invested to win now.

Are the Red Sox going to get Dan Haren, Roy Oswalt or Jayson Werth? No. But that was extremely unlikely to happen anyway. As for the possibility of acquiring David DeJesus, the biggest hurdle may be what the Royals want in return, not his modest salary. Same goes with Scott Downs. As for Kerry Wood, he needs to prove he is healthy first. 

Provided that Josh Beckett, Clay Buchholz, Dustin Pedroia, Jacoby Ellsbury and Victor Martinez eventually come back healthy, they should only need minor cosmetic changes to their roster, anyway. It’s just a matter of whether they can hang in the race until all or most of them return. Not many teams would act differently. I’m sure this issue will incite tons of conversation leading up to the trade deadline, but in the end I think it’s a bunch of sound and fury signifying bupkis. 

1:53 PM: This morning, Nick Carfardo of the Boston Globe backed up a recent report by Ed Price of AOL Fanhouse that suggested the Red Sox were unlikely to add any significant payroll before the trade deadline due to concern of going over MLB’s luxury tax threshold. Now it might not matter.

Just a short while ago, Carfardo reported that the Red Sox “have found out in the last few hours” that they have indeed gone
over the luxury tax threshold for 2010
, something that will have an impact on the team’s
payroll for 2011.

According to Cafardo, the Red Sox will be taxed at a 22.5 percent rate for every dollar spent above $170 million in payroll. The rate increases to a 30 percent tax for a payroll of $178
million next season. No surprise, the Yankees are the only other team that is over the threshold.

The Red Sox have made a concerted effort to avoid the luxury tax threshold, even not announcing Josh Beckett’s contract extension until after Opening Day so that it wouldn’t count against this season’s total. Evidently something happened to push them over the top, though it’s not exactly clear what that is. Hopefully we’ll hear more on that soon.

Recent reports have indicated that the Red Sox were willing to wait out their injured superstars as opposed to going out and adding any significant payroll. Today’s news probably won’t do anything to change that.

  1. Pisano - Jul 18, 2010 at 5:55 PM

    I’ll tell you another thing they’re over …. making the playoffs . With the injuries they’ve had , it’s no wonder . Considering the injuries , it’s amazing they’ve played as well as they have .

  2. JeffS - Jul 19, 2010 at 3:52 PM

    What, a second evil empire? just how can they live with the shame?

  3. YawnFlorio - Jul 19, 2010 at 4:44 PM

    What ever will the hypocritical fans do? One less thing that they can cry about regarding the Yankees.

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