Dodgers Lead in MLB Luxury Tax for Fourth Straight Year

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December 20, 2017 tickets, group outings, and mini-plans are on sale now online MINORS or by calling the Royals at 336-222-0223. Royals Announce 2018 Schedule NATIONAL December 19, 2017 Burlington Royals https://www.milb.com/b-royals/news/royals-announce-2018- schedule/c-263754666 Dodgers lead in MLB luxury tax for fourth straight year December 19, 2017 AP (via USA Today) NATIONAL https://www.usatoday.com/story/sports/mlb/2017/12/19/ap- newsbreak-dodgers-hit-with-36-2m-tax-yanks-with-15- Dodgers lead in MLB luxury tax for 7m/108757220/ fourth straight year The Los Angeles Dodgers will pay baseball's highest luxury December 19, 2017 AP (via USA Today) tax for the fourth straight year and the New York Yankees https://www.usatoday.com/story/sports/mlb/2017/12/19/ap- owe a penalty for a 15th consecutive season, streaks that newsbreak-dodgers-hit-with-36-2m-tax-yanks-with-15- could end as the sport's biggest spenders slash payroll for 7m/108757220/ 2018. Fitting Eric Hosmer in San Diego December 19, 2017 By Jeff Sullivan/FanGraphs The Dodgers owe $36.2 million, according to final figures https://www.fangraphs.com/blogs/fitting-eric-hosmer-in-san- compiled by the commissioner's office and obtained by The diego/ Associated Press. That raises their five-year tax total to MLB TRANSACTIONS nearly $150 million. December 20, 2017 •.CBSSports.com New York was second at $15.7 million, its lowest amount http://www.cbssports.com/mlb/transactions since 2011 but a figure that increased its total since the tax began to $341 million. San Francisco was next at $4.1 million, followed by Detroit at almost $3.7 million and MINORS Washington — which is paying tax for the first time — at just under $1.45 million. Royals Announce 2018 Schedule December 19, 2017 Burlington Royals The Dodgers and Yankees vow to get below next year's tax https://www.milb.com/b-royals/news/royals-announce-2018- threshold of $197 million. That would reset their base tax rate schedule/c-263754666 from 50% to 20% going into the 2018-19 offseason, when Bryce Harper, Manny Machado and possibly Clayton The Burlington Royals released their 2018 regular season Kershaw head a potentially illustrious free-agent class. schedule on Tuesday. The regular season starts on the road at the defending Appalachian League Champion Elizabethton "We know going in that the structure we have in place allows Twins on Tuesday, June 19th, and the home opener for the for flexibility for teams to make decisions in the near term Royals is Friday, June 22nd against the Bluefield Blue Jays. and for the longer term," players' association head Tony Clark said Tuesday. "It is something obviously we watch, The Royals are home once again on July 4th when they play something that we're very cognizant of." host to the Princeton Rays. Following the Independence Day game, the Royals will again stage the biggest fireworks show Los Angeles' 2018 payroll for tax purposes currently projects in Burlington! to about $181 million and New York's to $177 million.

Among the Royals' 34 home games, 19 take place on a "My goal is still to be under the threshold," Yankees owner Friday, Saturday, or Sunday. Hal Steinbrenner said last week after the team acquired high- priced slugger Giancarlo Stanton from Miami in a trade. The Royals will have five home games in June, sixteen in "Even with him added. We're comfortably under the July, and fourteen in August. Their most common opponent threshold with some more money to spend, whenever we is the Danville Braves, and they'll face off eleven times deem we want to spend it." during the 68 game season. The Royals will play the rest of the three teams in the eastern division nine times, and every Additional surtaxes began this season: 12% on amounts $20 team in the western division six times. million to $40 million above the threshold and 45% on amounts over $40 million for repeat offenders. But there "Having the schedule in hand is a great feeling," said Royals were special transition rules between the old and new labor General Manager Mikie Morrison. "We now have a few contracts. months to ensure we build an entertaining and exciting promotional schedule. The summer of 2018 is going to be a Starting next year, teams more than $40 million above the lot of fun." threshold would have their top amateur draft pick dropped back 10 slots — with the top six overall selections protected Game times will be announced in the Spring, but standard and the extra penalty applied to the second-highest pick of game time is 7 p.m. Monday through Saturday and 6 p.m. on those teams. Sundays. Gates open one hour prior to game time. The team plans to release their promotional schedule in May. A full Los Angeles lowered its regular payroll to $243.7 million schedule will be available soon online at from a record $291.1 million in 2015 and $254.9 million last www.burlingtonroyals.com for your convenience. Season year. For purposes of the tax, which uses average annual values and includes benefits, the Dodgers' payroll was nearly division made the playoffs. The season before, the fourth $253.6 million, an increase of $2 million. other team made the playoffs. What hope the Padres have is almost entirely tied up in the farm system. It is thought to be The Yankees' regular payroll was second at $208.4 million, terrific. The Padres have done an impressive job of down from $224.5 million last year and their lowest since restocking, but it’ll take time until that translates into more 2006. Detroit was third at $190.8 million after falling $8.5 major-league wins. I don’t think that could be questioned. million and Boston fourth at $189.2 million after falling $11.3 million. San Francisco was fifth at $186.6 million, This is why Hosmer would feel like a weird investment. I followed by the Chicago Cubs at $186.2 million. don’t know if he’ll sign for $120 million over six years. I don’t know if he’ll sign for $175 million over eight years. I World Series champion Houston was 18th at $134.1 million, don’t know if he’ll sign for more than that. But what we an increase of $30 million. know is that Hosmer is a free agent, and he’s going to get a huge guarantee. And as with virtually every free agent, you’d Other teams with big boosts included Washington (up $23 expect Hosmer’s best years to come at the front. Those are million to $179 million), Texas (up $20 million to $174.7 the seasons in which we can be least confident the Padres million), Colorado (up nearly $33 million to $142.7 million) might be competitive. and Cleveland (up nearly $36 million to $136.1 million). You expect big-money free agents to sign with good teams. The Chicago White Sox dropped by almost $37 million to Those are the teams that can make the best use of them. Yet $87.8 million and San Diego by nearly $26 million to $71.3 Hosmer might not have that choice to make. It’s possible million. he’ll end up choosing between a rebuilding situation in Kansas City and a rebuilding situation in San Diego. The Milwaukee, at $68.2 million, was last for the second straight Padres could be poised to offer more money. And this season. Just above were the Padres and Oakland at $76.3 wouldn’t be an unprecedented outcome. Barry Zito signed million. with a Giants team coming off a 76-win season. Zack Greinke signed with a Diamondbacks team coming off a 79- "We're watching. We'll continue to watch," Clark said. "We win season. Robinson Cano signed with a Mariners team have some concerns in some areas, which I won't go into." coming off a 71-win season. Jayson Werth signed with a Nationals team coming off a 69-win season. And, of course, Spending on 40-man major league payrolls totaled $4.24 Alex Rodriguez signed with a Rangers team coming off a 71- billion, an increase of $164 million, down from a $186 win season. Those contracts aren’t all success stories, not million increase last year. Regular payrolls include 2017 from the team perspective. But these things have happened salaries, earned bonuses and prorated shares of signing before. Hosmer could be San Diego’s Werth, installed in bonuses. advance of the competitive turn.

Luxury tax checks to the commissioner's office are due by Just to re-state things: That still doesn’t seem efficient. Jan. 21. The first $13 million of tax money is used to fund Hosmer’s best years could go to a team in fourth or fifth player benefits and starting this year 50% of the remainder place. Beyond that, Hosmer plays the same position as Wil will be used to fund player Individual Retirement Accounts. Myers, the Padres’ only current long-term contract. Myers is The other 50% of the remainder will be given to teams not capable of playing the outfield, but he hasn’t been very good over the tax threshold. at it before, and a position move could mean the exit of Jose Fitting Eric Hosmer in San Diego Pirela. I don’t want to get too far into the weeds. The Padres’ organizational future doesn’t depend on Jose Pirela playing December 19, 2017 By Jeff Sullivan/FanGraphs every day. But Hosmer isn’t even an obvious fit. https://www.fangraphs.com/blogs/fitting-eric-hosmer-in-san- diego/ You probably already understand that Hosmer, as a player, is fascinating. I think too much is made of the perceived On Monday, the Red Sox agreed to terms with first baseman conflict here; even the advanced numbers think Hosmer was Mitch Moreland. It was meaningful news, for two reasons. legitimately good in 2017. He was also legitimately good in One, this is the Red Sox we’re talking about, and it seems 2015 and in 2013. I’m comfortable declaring that Hosmer is like everything the Red Sox do is always big news. But then, an above-average everyday player. He’s more athletic than additionally, Moreland electing to re-sign would appear to the average first baseman, and as much as Hosmer’s game take the Red Sox out of the running for free agent Eric has hinted at a higher ceiling, he’s fine as is. Swings like this Hosmer. And while I’m certainly not Hosmer’s agent, the suggest Hosmer could turn into a force: (click link for video) market for his services apparently isn’t large. But even without any further development, Hosmer projects It could get larger. Scott Boras will work hard to make it for a 121 wRC+. He’s coming off a 135 wRC+. Over the past larger. It’s possible to see a team like, say, the Mets throwing three seasons, Hosmer ranks in just the 2nd percentile in their hat in the ring. Yet the Red Sox move increases the terms of productivity to the pull side, but he ranks in the 68th chances that Hosmer will stay in Kansas City. It also percentile going back up the middle, and he ranks in the 98th increases the chances that Hosmer will go to San Diego. The percentile going the other way. There are similarities to, say, Padres, so far, have been the most closely-linked suitor. They Christian Yelich and Joe Mauer. Hosmer is a good hitter who seem deeply motivated to turn Hosmer into a part of their teases that he could be a great one. core. The Padres haven’t won more than 77 games since 2011. At some point, you stop thinking about potential. Hosmer’s already batted more than 4,000 times in the majors. Yet this It’s been a while since the Padres were good. It might still be is where there’s another point in his favor — he turned only a while until the Padres are good. Right now, they’re 28 at the end of October. Hosmer might still be entering his tentatively projected at 71-91, with no single player projected prime. Short of that, his decline could be several years off. for 3 WAR. This past season, three teams from the Padres’ Rare is the quality free agent who hits the market at Hosmer’s age, but it does open the door to somewhat unconventional suitors. The Padres could choose to think TEAM PLAYER TRANSACTION about Hosmer’s 2020, while paying him a couple years before that.

Big contracts always happen one at a time, and so, generally, Los Angeles Signed to Play in Japan, they’re evaluated in isolation. It’s important to always keep Jared Hoying the bigger context in mind. For the Padres, I think this Angels (Hanwha Eagles) evaluation would be mixed. They’re in position to have a lot of future financial flexibility; only Myers is on the books long-term, so their current 2019 commitments total $22.75 million. The Padres anticipate drawing a lot of their future Philadelphia Signed to Play in Korea, (LG value from arbitration and pre-arb players. But in recent Hyun Soo Kim years, the Padres have also topped out at a payroll of roughly Phillies Twins) $108 million, and you could have Myers and Hosmer earning more than 40% of that. Both Myers and Hosmer look to be good enough, but neither is a superstar. A Padres team with hopes of contending would need to be extremely efficient San Francisco Signed as Free Agent, ( 2018) with what money it would have left. Nick Hundley Giants (one-year contract) If that means ownership would okay a higher payroll, that would be good news. Inefficiency doesn’t matter so much if you just have more money to play with. It’s just, the Padres will never be the Dodgers. Not in terms of what they can Austin Bibens- Signed to a Minor League spend. The Dodgers can afford to make worse investments. Texas Rangers The Padres have already hitched themselves to Myers, which Dirkx Contract makes proper evaluation of other commitments all the more critical.

Lastly, because it’s talked about too often to ignore, Hosmer Signed to a Minor League is frequently credited with possessing strong leadership Texas Rangers Erik Goeddel skills. He’s been the heart of the clubhouse in Kansas City, Contract and he emerged in the national spotlight during the World Series runs. I don’t doubt that Hosmer has been one of the leaders of the Royals. What we don’t know is whether those traits are “sticky,” so to speak. A leader of one clubhouse Washington Chris Signed to a Minor League might not be a leader in another. The Padres have a whole different group of players, players Hosmer hasn’t played Nationals Dominguez Contract alongside with for years. The Padres and Hosmer haven’t developed together, and interpersonal dynamics are never so easy to forecast. Maybe it helps that Hosmer has already seen one rebuild all the way through. Maybe he could help to Washington Signed to a Minor League guide the Padres, with his experience. Or maybe it wouldn’t Cesar Vargas work like that at all. Hosmer would definitely be the highest- Nationals Contract paid player in the clubhouse. He could be respected, or he could be resented. Teams need leaders, but good luck knowing who the leaders will be. Washington Signed to a Minor League The more I think about Hosmer, the more I feel like one of Tommy Milone Nationals Contract the “high guys” on him. I think he’s worthy of a lengthy commitment, and I think there’s upside in there, even beyond what Hosmer has already done. I’m encouraged by how hard he sometimes hits the ball, and I suspect his above-average athleticism will afford him a more graceful decline. That all Washington Signed to a Minor League Moises Sierra being said, Hosmer, for me, falls short of being great, and the Nationals Contract Padres as a suitor have two qualities that make them atypical. They’re a smaller-market operation, and they’re probably at least a couple years from being competitive. You don’t expect a team like that to wade in these waters. If the Padres were to end up with Hosmer, it would put that much more pressure on the farm system to churn out cheap and quality major-league talent. If the Padres could surround Hosmer and Myers with enough talented youth, there would be a contender, there. They’d just need to hope that the youth would come quickly, or that Hosmer’s decline would not. MLB TRANSACTIONS December 20, 2017 •.CBSSports.com http://www.cbssports.com/mlb/transactions