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.

The Red Sox’ DH search now includes Pedro Alvarez

NEW YORK, NY - AUGUST 27:  Pedro Alvarez #24 of the Baltimore Orioles walks back to the dugout after striking out with the bases loaded to end the top of the first inning on August 27, 2016 at Yankee Stadium in the Bronx borough of New York City. (Photo by Christopher Pasatieri/Getty Images)
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The Red Sox have more or less withdrawn from the Edwin Encarnacion sweepstakes, with Evan Drellich of the Boston Herald noting that much of their reluctance hinges on the likelihood that they’d exceed the new $195 million luxury tax threshold by locking the DH into a lucrative deal. That doesn’t leave them without options, however, and FanRag Sports’ Jon Heyman reported that the club could be interested in 29-year-old corner infielder Pedro Alvarez, as well as fellow free agents Mike Napoli and Matt Holliday.

After playing just 10 games at DH from 2010 to 2015, Alvarez suited up as the Orioles’ primary designated hitter and part-time third baseman in 2016. His defense is sub-par, to say the least, but he batted .249/.322/.504 with 22 home runs for Baltimore in 2016.

According to Heyman, the Red Sox envision using Alvarez in much the same way the Orioles did. He’d have a place as the team’s DH with the occasional infield start, while Hanley Ramirez would keep his post at first base. Whether the Red Sox make offers to Napoli, Holliday or Alvarez, they’re expected to pursue a short-term deal in order to stay under budget.

Braves sign Jacob Lindgren to one-year deal

OAKLAND, CA - MAY 29:  Jacob Lindgren #64 of the New York Yankees watches Brett Lawrie #15 of the Oakland Athletics round the bases after he hit a home run in the eighth inning at O.co Coliseum on May 29, 2015 in Oakland, California.  (Photo by Ezra Shaw/Getty Images)
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The Braves signed left-handed reliever Jacob Lindgren to a one-year deal, according to a team announcement on Sunday.

Lindgren, the Yankees’ top draft pick in 2014, was nicknamed “The Strikeout Factory” after blowing through four levels of New York’s farm system in 2014. He started the 2015 season in Triple-A Scranton/Wilkes-Barre and was called up for his major league debut only two months into the 2015 season. The 22-year-old lasted seven innings with the club before succumbing to bone chips in his elbow, and underwent bone spur surgery in June before trying his luck again during spring training in 2016.

In August, the Yankees shut Lindgren down for the remainder of the season so the lefty could undergo Tommy John surgery. With a projected return date of 2018, Lindgren was non-tendered by the Yankees on Friday.

While the Braves won’t get the benefit of Lindgren’s top prospect skill set in their bullpen anytime soon, he will remain under club control if they keep him on their 40-man roster beyond the 2017 season (per ESPN’s Keith Law).