Why didn't Sox save 2 million a year on luxury tax?

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

    Why didn't Sox save 2 million a year on luxury tax?

    I understood waiting to make sure Agon was okay to sign him. But why not restructure his contract to 8 years 160 mil. They were going to be over. They could have took the 14 mil hit last year & saved 2 mil a year the next 7 years on cap space. It's not like Agon or the players union would have Had a problem with it.
     
  2. You have chosen to ignore posts from Joebreidey. Show Joebreidey's posts

    Re: Why didn't Sox save 2 million a year on luxury tax?

    They might have an issue with it.  If I thought the extra $2M would keep them under the limit this year, it'd be worth it.

    On the other hand, that's the equivalent of Gonzo signing for Y8 at $6M (160-154), so I'm not sure he'd go for it.
     
  3. You have chosen to ignore posts from Hfxsoxnut. Show Hfxsoxnut's posts

    Re: Why didn't Sox save 2 million a year on luxury tax?

    In Response to Why didn't Sox save 2 million a year on luxury tax?:
    I understood waiting to make sure Agon was okay to sign him. But why not restructure his contract to 8 years 160 mil. They were going to be over. They could have took the 14 mil hit last year & saved 2 mil a year the next 7 years on cap space. It's not like Agon or the players union would have Had a problem with it.
    Posted by SoxRuleTheRoost


    You're assuming they're going to go over the limit every year.  That's probably not going to happen.  A new penalty for exceeding the threshold kicks in in 2013.  The penalty is calculated at a percentage of 'revenue-sharing recovery' that teams under the threshold will receive.  The penalty rate is phased-in, increasing each year from 2013 to 2016.

    Also, the LT threshold increases to 189 million in 2014.

    Pundits have already written articles predicting that even the Yankees will try to get their payroll below 189 million for 2014 rather than incur all the extra tax and penalty.
     
  4. You have chosen to ignore posts from SoxRuleTheRoost. Show SoxRuleTheRoost's posts

    Re: Why didn't Sox save 2 million a year on luxury tax?

    In response to "Re: Why didn't Sox save 2 million a year on luxury tax?":
    They might have an issue with it.  If I thought the extra $2M would keep them under the limit this year, it'd be worth it. On the other hand, that's the equivalent of Gonzo signing for Y8 at $6M (160-154), so I'm not sure he'd go for it. Posted by Joebreidey
    I was vague. I meant why didn't they restructure his last year of his contract to 8 years 160 mil, instead of leaving it at 6 mil and the next 7 years at 154 mil. They would have had to do it last year. I think Agon Would have been okay making 20 mil rather than 6 mil. They would have took a 14 mil hit on the luxury tax last year. But they were over anyway. That 2 mil savings, for the next 7 years would have been nice. But as they say hindsight is 20/20.
     
  5. You have chosen to ignore posts from SoxRuleTheRoost. Show SoxRuleTheRoost's posts

    Re: Why didn't Sox save 2 million a year on luxury tax?

    In response to "Re: Why didn't Sox save 2 million a year on luxury tax?":
    In Response to Why didn't Sox save 2 million a year on luxury tax? : You're assuming they're going to go over the limit every year.  That's probably not going to happen.  A new penalty for exceeding the threshold kicks in in 2013.  The penalty is calculated at a percentage of 'revenue-sharing recovery' that teams under the threshold will receive.  The penalty rate is phased-in, increasing each year from 2013 to 2016. Also, the LT threshold increases to 189 million in 2014. Pundits have already written articles predicting that even the Yankees will try to get their payroll below 189 million for 2014 rather than incur all the extra tax and penalty. Posted by Hfxsoxnut
    Good point, but the 2 mil savings on the luxury tax for the next 7 years would have helped them get under the limit and stay under the limit. Also they didn't know what the luxury tax threshold was going to be. Just surprised Theo, Ben or Larry didn't think of it.
     
  6. You have chosen to ignore posts from Hfxsoxnut. Show Hfxsoxnut's posts

    Re: Why didn't Sox save 2 million a year on luxury tax?

    In Response to Re: Why didn't Sox save 2 million a year on luxury tax?:
    In response to "Re: Why didn't Sox save 2 million a year on luxury tax?": Good point, but the 2 mil savings on the luxury tax for the next 7 years would have helped them get under the limit and stay under the limit. Also they didn't know what the luxury tax threshold was going to be. Just surprised Theo, Ben or Larry didn't think of it.
    Posted by SoxRuleTheRoost


    They probably did.  The hit on the 14 million would have been at 30%, or 4.2 million.  They went for the deferral instead.  Deferral is a popular form of tax planning.
     
  7. You have chosen to ignore posts from JB-3. Show JB-3's posts

    Re: Why didn't Sox save 2 million a year on luxury tax?

    In Response to Why didn't Sox save 2 million a year on luxury tax?:
    I understood waiting to make sure Agon was okay to sign him. But why not restructure his contract to 8 years 160 mil. They were going to be over. They could have took the 14 mil hit last year & saved 2 mil a year the next 7 years on cap space. It's not like Agon or the players union would have Had a problem with it.
    Posted by SoxRuleTheRoost


    The Sox, or any other team, had no way of knowing just how strict the new luxury tax penalties were going to be.  I don't think the FO would have had a major problem with exceeding the cap under the old rules, but now going over the cap by even $1M can result in 10's of millions of dollars in penalties, because of the percentage of revenue sharing credit for being under.
     
  8. You have chosen to ignore posts from law2009a. Show law2009a's posts

    Re: Why didn't Sox save 2 million a year on luxury tax?

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

    Re: Why didn't Sox save 2 million a year on luxury tax?

    m
     
  10. You have chosen to ignore posts from moonslav59. Show moonslav59's posts

    Re: Why didn't Sox save 2 million a year on luxury tax?

    I think the Sox thought they might stay under the cap last year. Thats is why they chose to not take the AGon hit last year. The Bedard & Aviles deals did not help.
     
  11. You have chosen to ignore posts from law2009a. Show law2009a's posts

    Re: Why didn't Sox save 2 million a year on luxury tax?

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

    Re: Why didn't Sox save 2 million a year on luxury tax?

    m
     
  13. You have chosen to ignore posts from Hfxsoxnut. Show Hfxsoxnut's posts

    Re: Why didn't Sox save 2 million a year on luxury tax?

    In Response to Re: Why didn't Sox save 2 million a year on luxury tax?:
    I think the Sox thought they might stay under the cap last year. Thats is why they chose to not take the AGon hit last year. The Bedard & Aviles deals did not help.
    Posted by moonslav59


    Bedard & Aviles were peanuts.  They ended up 11 million over the cap.  Once they signed Crawford and Blobby the cap was toast.  But the A-Gon extension delay reduced the tax bill by 4.2 million.

     
Sections
Shortcuts

Share