Trades & the luxury tax.

  1. You have chosen to ignore posts from SoxRuleTheRoost. Show SoxRuleTheRoost's posts

    Trades & the luxury tax.

    If you trade someone & cash to another team. Are you still on the hook for luxury tax purposes for the amount of cash. Say we found a team that would trade a mid-level prospect for $5 million cash & Bobby Jenks. For luxury tax purposes would new team be tagged for $6 million or $1 million? If it would still clear the full $6 million of Jenks' contract off the books for luxury tax purposes, would it be worth the outlay, if it got us under the threshold? It would seem a team with plenty of Luxury tax space, might take a chance on a low risk trade.
     
  2. You have chosen to ignore posts from adam4522. Show adam4522's posts

    Re: Trades & the luxury tax.

    I could be wrong, but if cash is layed out, I think that cash stays as part of our cap space.  I could be wrong, and would love it if I am...but i gotta think they plugged that loop hole to let the high revenue teams "sell" their bad contracts off the luxury tax docket.
     
  3. You have chosen to ignore posts from JB-3. Show JB-3's posts

    Re: Trades & the luxury tax.

    In Response to Re: Trades & the luxury tax.:
    [QUOTE]I could be wrong, but if cash is layed out, I think that cash stays as part of our cap space.  I could be wrong, and would love it if I am...but i gotta think they plugged that loop hole to let the high revenue teams "sell" their bad contracts off the luxury tax docket.
    Posted by adam4522[/QUOTE]

    You are correct, cash going to or from a team, is figured in as part of the tax calculations.
     
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  5. You have chosen to ignore posts from Hfxsoxnut. Show Hfxsoxnut's posts

    Re: Trades & the luxury tax.

    MLB probably has a consulting contract with the IRS to help them figure out this tax stuff.
     
  6. You have chosen to ignore posts from hankwilliamsjr. Show hankwilliamsjr's posts

    Re: Trades & the luxury tax.

    It is prorated, when the actual CBT capture date and calculation takes place near year end.
     
  7. You have chosen to ignore posts from moonslav59. Show moonslav59's posts

    Re: Trades & the luxury tax.

    Trade Jenks to the Cubs and call the Theo comp finished. Save $6M.

    Trade Scutaro to Atlanta or Detroit for a prospect. Save $6M.

    Trade Middlebrooks, Ranaudo, and Bowden for Gavin Floyd.

    Iggy/Aviles play SS

    Use extra money to sign a couple more cheap pitchers or sign Cody Ross.
     
  8. You have chosen to ignore posts from hankwilliamsjr. Show hankwilliamsjr's posts

    Re: Trades & the luxury tax.

    Trade Middlebrooks, Ranaudo, and Bowden for Gavin Floyd.

    Do not do this, as the Red Sox need to increase young farm pitcher numbers and decrease old overrated veteran pitchers which are currently the downfall of the Red Sox.

    Do not sign Cody Ross!

     
  9. You have chosen to ignore posts from rvicini. Show rvicini's posts

    Re: Trades & the luxury tax.

    We are OK. . We can't give away the farm for another one-year "inning eater". Give the farm a chance! Will be ever Doubront will be given a chance? Isn't Aceves a better starter than other options. I think so. We have plenty of pitching, for at least half a season. If not, we have the trade deadline. BTW, with DiceK in a good condition we always went to the postseason
     
  10. You have chosen to ignore posts from MadMc44. Show MadMc44's posts

    Re: Trades & the luxury tax.

    moon and jr. I would make that move and expand it slightly: , Floyd and Brent Lillibridge, a true dirt dog, similar to Cody Ross but younger, age 28 and under team control for three years. This kid appears to be like Pedroia, he grows on you. RH bat with some power and decent speed. Expand the trade and offer DMc or Hassan or Lin as a prospect. Lillibridge and Sweeney in RF would be pretty solid.
    If you are giving up a stick with Middlebrooks potential--I feel you need to get a stick back.
     
  11. You have chosen to ignore posts from moonslav59. Show moonslav59's posts

    Re: Trades & the luxury tax.

    In Response to Re: Trades & the luxury tax.:
    [QUOTE]moon and jr. I would make that move and expand it slightly: , Floyd and Brent Lillibridge, a true dirt dog, similar to Cody Ross but younger, age 28 and under team control for three years. This kid appears to be like Pedroia, he grows on you. RH bat with some power and decent speed. Expand the trade and offer DMc or Hassan or Lin as a prospect. Lillibridge and Sweeney in RF would be pretty solid. If you are giving up a stick with Middlebrooks potential--I feel you need to get a stick back.
    Posted by MadMc44[/QUOTE]

    I like this idea.

    I understand some posters are high on Middlebrooks and Ranaudo, but I like Cecchini and Barnes more, so I don't see this as a big loss. (We may also see bogaerts moved to 3B as well.)

    Gavin Floyd has 2 years left of team control and may net 2 draft picks if he walks afterwards. He turns 29 soon, and so is in his prime for both years. He's had 30+ starts for 4 straight years and 187+ IP as well. (His highest was 206, so he is not "burnt out".) He's had a WHIP under 1.260 in 3 of the last 4 years, and and ERA just over 4.00 during the same timeframe.

    He's owed $7M in 2012, and there's a club option for $9.5M for 2013. I would not do this deal if it puts us over the limit, but if we can trade Scutaro (to ATL or DET for a prospect) and/or Jenks (to the Cubs for Theo), I'd say GO!!!!

     
  12. You have chosen to ignore posts from law2009a. Show law2009a's posts

    Re: Trades & the luxury tax.

    m
     

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