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- #61
saddles
No More "Bullpen Failure"
From Evan Grant:
A drop in the bucket, all things considered for a world champion. For 2024, the threshold jumps to $237 million. But, if the Rangers eclipse that, they’d be a second-time payor, meaning their tax rate would also rise. It would be 30% if they exceed the threshold by less than $20 million, 42% if they exceed it by between $20-40 million and, 75% for exceeding it by $40-60 million and 90% for anything above $60 million.
According to Baseball Prospectus, if the Rangers keep Leclerc and lose Heaney, they have roughly $162 million already committed for 2024 for eight players. The CBT tax uses the 40-man payroll compensation plus benefits. That accounted for almost $50 million on top of the 26-man opening day payroll. Do the math and you are looking at a team at about $210 million already committed with potentially eight arbitration cases pending and perhaps some long-term extensions to consider. Then again, the power of 500,000 people showing up in Arlington for a championship parade and what they might be willing to spend for tickets and merch in the future is a powerful temptation.
Are they willing to pay the CBT payroll tax a second year?
For the first time ever, the Rangers will pay the luxury tax for the 2023 roster. Threshold for the tax was $233 million this season. According to Baseball Prospectus’ database, the Rangers’ payroll for CBT purposes finished at $242 million. They will pay a 20% tax on the overage, about $1.8 million in fees.A drop in the bucket, all things considered for a world champion. For 2024, the threshold jumps to $237 million. But, if the Rangers eclipse that, they’d be a second-time payor, meaning their tax rate would also rise. It would be 30% if they exceed the threshold by less than $20 million, 42% if they exceed it by between $20-40 million and, 75% for exceeding it by $40-60 million and 90% for anything above $60 million.
According to Baseball Prospectus, if the Rangers keep Leclerc and lose Heaney, they have roughly $162 million already committed for 2024 for eight players. The CBT tax uses the 40-man payroll compensation plus benefits. That accounted for almost $50 million on top of the 26-man opening day payroll. Do the math and you are looking at a team at about $210 million already committed with potentially eight arbitration cases pending and perhaps some long-term extensions to consider. Then again, the power of 500,000 people showing up in Arlington for a championship parade and what they might be willing to spend for tickets and merch in the future is a powerful temptation.