Remember, if you can, that pre-pandemic world where issues like the Red Sox ‘declared and then dismissed the desire to plunge under the luxury tax line were paramount. While there are much bigger concerns now, even just in the realm of baseball finance, the luxury line remains a real moment for the Boston organization.
The Red Sox have already done the hard work, especially, trading Mookie Betts and David Price, to reduce the 2020 salary to the point that the team would not pay competitive balance fines, and, more importantly, it would reset its rate. penalty for future seasons. Unfortunately, the uncertain nature of the 2020 campaign extends to that effort. If the season is canceled, it won’t count as a luxury fiscal year, meaning the Red Sox would still consider themselves a multi-year criminal at the start of the 2021 offseason.
It is clear, then, what happens if the 2020 season is played (restart!) Or not (does not restart!). But what about a partial season? Alex Speier of the Boston Globe has us covered.
For the 2020 campaign to count toward registering luxury tax years, it must continue beyond the August 31 business deadline. Even in the event of a mid-season cancellation before then, the Sox will remain in the penalty box. If MLB finds a way to keep its contests through September (and hopefully beyond), then the Red Sox’s overspending record will be removed before the 2020-21 offseason.
As Speier points out, the coronavirus pandemic has not only altered the calendar. It also modifies what kind of income-sharing discounts the Red Sox can anticipate if they avoid another year of recidivism. And change what kind of expense the club might want in free agency this coming winter. Even without the increases in tax charges that apply to multi-station taxpayers, revenue shortfalls are sure to affect the search for high-value players.
While the motivation for the luxury reboot isn’t as strong in hindsight as it was back then, the Sox are surely still hoping to reap the rewards. As long as the league continues to operate after the trade deadline, where they can expect some interesting questions, they will.
