Goold: Is it surprising that Marcus Stroman did not become a cardinal? | For subscribers only

0

The opt-outs add to the intrigue. As well as the fact that the Cubs cannot support him with the same defense as the Cardinals. That is something to see.

Q: How does the luxury tax affect the CBA talks?

A: It’s huge. Quick: The luxury tax is the threshold MLB sets to limit spending at the high end, and there are penalties if it is exceeded. These penalties increase every year as a team goes above and beyond, from dollar-for-dollar taxes to losing draft picks. You will see teams trying to get under the luxury tax in years’ time if, for example, they are penalized with a draft pick. It’s a factor when teams sign players because while they go maybe 5 years, $ 100 million for a player, if that player puts them above the luxury tax, that team has to factor in the fact that $ 25 a year could be $ 35 . $ 40 depending on where they are in terms of luxury taxes and how far they go.

It’s a massive part of the negotiation because the luxury tax hike gives teams a higher cap on their payroll, and therefore more money for free agents.

On the union side, it is argued that the luxury tax created a de facto wage cap, which the MLBPA does not want. And I get the impression that the owners don’t want that either when they’re being pushed. Why? Well, in order to set a salary cap, the sides would have to negotiate that cap as a guaranteed percentage of sales. That requires the definition of revenue. You can’t split a cake, 48/52 or 50/50 or whatever, without knowing the size of the cake. So that would mean that owners would have to reveal some inside information that they didn’t necessarily want to share before.

Share.

Comments are closed.