Philosophy change could push BoSox over tax threshold

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WEEI’s Alex Speier has a great look at Boston’s new payroll in light of the Marco Scutaro, John Lackey and Mike Cameron signings and how the team might join the Yankees in paying the luxury tax in 2010.
According to Speier’s figures, the Red Sox have a projected luxury-tax payroll of $168.07 million, barely short of the $170 million threshold. That’s even taking into account the Mike Lowell trade, which would add an additional $3 million to the payroll if it falls through.
It wouldn’t be a huge deal if the Red Sox did surpass the threshold for a year — they’d simply be taxed at 22.5 percent of whatever they spent above $170 million — but the simple fact that they’re threatening it after years of staying clear is interesting. The last time they were taxed was 2004, when they paid around $6 million after winning their first World Series in 86 years (a fair trade in the opinion of most).
Of course, the Boston payroll still wouldn’t be $170 million. The payroll as calculated for tax purposes uses average annual salaries and also includes a uniform $10.5 million hit for player benefits.
And it’s the average annual salaries that would bite the Red Sox here. Prior to last year, the team was so conscious of its position straddling the luxury tax that it avoided signing young players to long-term deals. That changed as Dustin Pedroia, Kevin Youkilis and Jon Lester all received extensions that kept them into their free agent years.
And it’s those contracts that could put the Red Sox over the top. In reality, those three players, all of whom signed extensions last winter, will earn $16.375 million next season. However, for tax purposes, they’re valued at $23.03 million.
Those deals still figure to pay off big in the long run. And come 2012, the Red Sox will actually be making out for luxury tax purposes, since the players will be earning more than the average value of their deals. But for 2010, it could mean that the Boston coffers will take a modest hit.

Giants sign catcher Nick Hundley

DENVER, CO - JUNE 07:  Nick Hundley #4 of the Colorado Rockies takes an at bat against the Miami Marlins at Coors Field on June 7, 2015 in Denver, Colorado.  (Photo by Doug Pensinger/Getty Images)
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Andrew Baggarly of the Mercury News reports that the Giants have signed catcher Nick Hundley. It’s a major league deal worth $2 million.

Hundley, who is 33, but who seems like he’s been in the bigs for about 27 years, hit .260/.320/.439 with 10 homers in 83 games for the Rockies last season. Obviously he will be the backup given the presence of Buster Posey.

MLB reorganizes its diversity and social responsibility leadership structure

Billy Bean
Associated Press
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Major League Baseball has experienced inconsistent progress in its efforts at promoting diversity and social responsibility in recent years despite making it a league priority.  Today it has announced several changes in its leadership structure in these areas, with Commissioner Manfred saying, “As the sport of Jackie Robinson and Roberto Clemente, we have a responsibility to uphold and honor their legacies, especially in ensuring that our sport and business practices are as inclusive, diverse and socially-conscious as possible.”

To that end:

  • Billy Bean has been promoted to Vice President and Special Assistant to the Commissioner. This is a newly-created and elevated position in which Bean will continue his efforts at promoting human rights issues important to Major League Baseball, with a particular focus on LGBT and anti-bullying efforts. He has done such work since 2014 as its Ambassador for Inclusion, but putting him at the vice presidential level and having him answer directly to Commissioner Manfred increases his profile and that of his mission;
  • Renée Tirado, has been promoted to Vice President of Talent Acquisition and Diversity & Inclusion. Tirado had previously served as Senior Director of Recruitment. She will direct the implementation of recruitment plans and procedures to support MLB’s staffing objectives and will oversee MLB’s Diversity Pipeline Program. As you may recall, Major League Baseball has struggled mightily in these effort in recent years, and has admitted as much; and
  • Melanie LeGrande has been promoted to Vice President of Social Responsibility. She previously served as MLB’s Director of Community Affairs. Her job will be to develop and enhance the initiatives that support MLB’s position in the community and oversee MLB’s community investments, nonprofit/non-governmental organization partnerships, large-scale disaster relief efforts and employee volunteer engagement.

Manfred said, “the promotions of Billy, Renée and Melanie reflect our commitment to have strong, innovative leadership in place that aligns our industry objectives with a desire to be effective corporate citizens.”

While all of these are current employees who have served in roughly similar roles. A business’ organizational chart says much about how much that business values various functions and initiatives. In keeping with Manfred’s comments, that all three of these people have been promoted to the vice presidential level is a strong signal from MLB about what it wants.

Now all it has to do is follow through and get what it wants.