According to Senior MLB Writer Ed Price at AOL Fanhouse, the Red Sox could be limited at the trade deadline this year because of the luxury tax.
That tax, which in the Red Sox’ case would be 22.5 percent of every dollar over $170 million in payroll, is based on the so-called “actual club payroll,” not the Opening Day payroll. So the pro-rated salaries of any players acquired in a trade would count toward that figure.
The Associated Press listed Boston’s Opening Day payroll as $162.7 million, although the luxury-tax figure will also include players on the 40-man roster and players’ benefit.
Thus, the Red Sox are about tapped out. The source said the front office would have to “jump through hoops” — make a strong case to ownership — just to add $500,000 in salary over the rest of the season. That’s the equivalent of a player making $1.1 million for the year.
Paying luxury tax this year would make Boston liable to a 30 percent luxury tax on payroll over $178 million in 2011, when Beckett, Kevin Youkilis, Dustin Pedroia and Jon Lester are due for raises.
If the Red Sox are having financial issues, nobody tell David Ortiz, who recently said that he wants a multi-year contract extension.
Even though Boston is still very much in the playoff hunt, it’s been an uphill battle for them in 2010. As Price notes in his article, roughly $45 million worth of Red Sox players are on the disabled list, including Josh Beckett ($12 million), Dustin Pedroia ($3.5) million, Victor Martinez ($7 million), Jason Varietk ($5 million), Clay Buchholz ($440,000), Mike Lowell ($12 million) and Jacoby Ellsbury ($500,000).
With their growing list of injuries, the Red Sox probably won’t be able to stay in contention in the second half at their current state. They could stand to add a reliever, an outfielder or perhaps even another starter, but if Price is right and Theo Epstein will be limited at the deadline, then we might be looking at a Boston-less postseason in a couple of months.
If their 7-2 loss to the Rangers on Thursday night was a taste of things to come, then the BoSox are in store for a long second half.
