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Kennedy: Red Sox Willing To Pay Competitive Balance Tax By 2025

Red Sox brass have been signaling their intent to have a tough season, with president and CEO Sam Kennedy doubling down this week, according to Michael Silverman of the Boston Globe. As they look to navigate the next few months, they clearly don’t view the competitive balance tax as a red line. “Even if it takes us more than CBT,” Kennedy said at the owners’ meetings, “our priority is to win 90 to 95, and win the American League East, and win this division for many years.”

Those comments echoed some of Kennedy’s last month, when he talked about winning 90-95 and aiming for a division title. It looks like the club is planning to take a step back after several years of playing things modestly.

Looking at payroll data from Cot’s Baseball Contracts, the Sox were among the top six spenders each year from 2000 to 2020, an average in which they won four titles. But they’ve dropped to the middle of the pack recently, including 12th place finishes the past two seasons. Perhaps not just that, the results have declined, as the Sox have finished last in the American League East the last three years.

Red Sox fans may be rolling their eyes after chairman Tom Werner’s comments last year that “full throttle” didn’t lead to much, but that makes it all the more apparent that the Sox have been taking every opportunity to raise expectations, even as they lower fans. two years in a row would obviously be a bad public relations strategy.

A baseball executive Craig Breslow he talked about looking to “raise the roof” on the rotation earlier this month. As mentioned, this is the second time that Kennedy has publicly stated that the club is planning to take a shot at this stage, this time indicating that it may even be in a position to pay taxes as it does. They have already been linked to free agents like the big names Juan Soto, Blake Snell, Willy Adams, Fried Max and others.

“Is that possible? If that’s what it takes, yes, of course,” Kennedy said of adding a major contract to the team’s handbook. “We are investing more money than last year. We intend to invest further. There is an extreme urgency within us to compete for the American League East Championship and prepare for a deep season run in 2025 without a doubt. The goal is to win 90 plus games so you don’t have to worry about a place on the cards.”

Assuming the club is really willing to cross the tax line, that gives them plenty of spending power this winter. RosterResource currently calculates the team’s CBT number at $171MM in 2025. The tax floor will be $241MM next year, meaning the Sox could offer contracts for about $70MM in average annual value before hitting the line.

That may not even be the limit of their spending ability if they are willing to exceed the base limit. The Sox have not paid the tax since 2022, so they will be a “first time” payer in 2025. That means they will face a basic tax rate of just 20%, with higher rates going beyond the three. thresholds, each $20MM higher than before.

Soto is expected to make a historic deal, with many predictions suggesting he could get something in the $45-50MM per year window. Theoretically, the Sox could sign Soto and still have the money for other moves, if they’re willing to cross the line. Even without signing Soto, they could sign more players from the next round of free agency.

Of course, saying you are willing to pay tax and actually doing it are two different things. It’s still possible that the Sox are aggressive in ways that push salary toward the tax line without going overboard. That could mean less work in free agency while working more on the trade market, or perhaps not doing much in either field.

However he plays well, that gives the club plenty of potential options in terms of improving a team that went 81-81 in 2024. They have strong players like Rafael Devers, Jarren Duran, Tanner Houck and others. They have an impressive group of prospects that includes the “Big Four” of Kristian Campbell, Marcelo Mayer, Kyle Teel again Roman Anthonyall of them are of high quality. Those players could perhaps be used as part of a larger deal for such a person Garrett Crochetor they could be kept as the Sox address their roster with free agents instead. “Everything and anything is on the table for us,” said Kennedy. “Free agency, trades, promotions from the minor leagues.”


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