A blog dedicated to the New York Mets with some other baseball thrown in.

Tuesday, January 25, 2005

Some Money Talk

For the luxury tax, payrolls are calculated using average annual values of contracts of players on 40-man rosters, earned bonuses and about $9 million per team for benefits. Basically, the payroll that all of the 2005 salaries add up too are not the figure that gets taxed. To me the number to still go by is the 2005 total payroll of the 25 man major league roster when you are looking at how much the Mets are spending since the other figures are included every year and is more of a static cost that gets tacked on every year. Between benefits and the players in the minors who are on the 40 man roster, that figure is somewhere between $9 million and $12 million that gets tacked on every season for most teams depending on how many players in their minor league system have major league contracts, which the Mets have two of this season in Alay Soler and Phil Humber. The 25 man MLB roster number is something we can measure against other teams and past years since most team’s figures of the other 15 players on the 40 man roster and the benefits are for the most part very similar give or take a few million.

The figure that the Mets are looking at right now without a first baseman is roughly $112 million when the other 15 players on the 40 man roster are taken into account and a rough figure of $9 million for benefits are added in, though that benefit figure could be less. Even if the Mets added Carlos Delgado for $12 million, the ML payroll would be about $113 million and their payroll for luxury tax purposes would be about $125 million. The Mets would not be going over the luxury tax threshold of $128 million this up coming year and as long as they keep their major league roster under $116 million this season they should just miss out on having to pay any luxury taxes. Forget the fact they will probably not even spend enough to get taxed, but really, even if they if they squeaked past that $128 million luxury tax threshold, the amount over the threshold is taxed at 22.5%. That means if they go over it by $3,000,000 they would only be taxed $ 675,000. Is it really that much of deal breaker for vastly improving this team? Not when you look at the fact the Marlins are probably going to land Delgado if the Mets do not. A lineup of Pierre, Castillo, Lowell, Delgado, Cabrera, and LoDuca heading up the top six of your division rival is reason enough for anyone to make some sacrifices.

* * *

  • Baseball has come a long way since 2000. Despite the fact that Football has passed baseball as the most popular sport in the USA and actually grosses more money, baseball is alive and doing well. Back in 2000, there were 45 players who earned more than $6 million to form baseball's economic elite. That year, Carlos Delgado and Jeff Kent delivered the best value out of any player making more than $6,000,000. In 2004, there were 130 players making over $6,000,000. The number of six millionaires has increased by 276% and that figure is probably going to climb higher in 2005. Nice to be a ballplayer these days.

  • Piazza to hang them up? One has to wonder if he will want to come back if has another year like last year. He just got married, he's got the record for the most homers as a catcher, and he's dropped a few notches in productivity when he coincidentally cut off his mullet. So as I see it, he has two options. Grow the mullet back, or retire.

  • Mike Lupica shows the Mets some love.

    This is something from Lupica's story what we all like to read:

    While Fred Wilpon played an integral role in signing Pedro Martinez and Carlos Beltran, his son was entrusted with the finances of the Delgado project. According to one person familiar with the talks, Jeff Wilpon tried to get "cute" with the money, and otherwise created friction with Sloane.

  • The Baltimore Sun has finally reported what has been speculated, the Orioles have raised their offer to four years, $48 million.

  • The Tigers are interested in Magglio Ordonez as are the Texas Rangers and possibly the Mets, Orioles, and Cubs. Amazingly enough, he's finally working out for teams.

  • Stephen Drew and the Diamondbacks have resumed talks. I'm personally pulling for a miracle and for him to be around for the 9th pick in the 2005 draft, but I doubt the D-Backs are going to let him walk away.

  • The Dodgers strike fear into the hearts of the NL West opponents by signing Scott Erickson.


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