Orioles trade for Brewers outfielder Gerardo Parra

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UPDATE: It’s a done deal. Parra for Davies.

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Brewers outfielder Gerardo Parra has been heavily linked to the Orioles all week and Ken Rosenthal of FOXSports.com reports that the two sides are “closing in” on a deal.

According to Rosenthal the trade would send Parra to Baltimore in exchange for pitching prospect Zack Davies, a 22-year-old right-hander currently starting at Triple-A.

Baseball America’s midseason prospect update ranked Davies as the eighth-best prospect in the Orioles’ farm system, noting that he “keeps hitters off-balance with an 88-92 mph fastball and an above-average changeup while mixing in an average slider.”

Parra is having a fantastic, career-year by hitting .328 with nine homers and an .886 OPS in 100 games and he can handle all three outfield spots defensively, but he’s also an impending free agent and hit just .267 with a .709 OPS from 2012-2014.

Cubs, Red Sox, Yankees exceeded competitive balance tax threshold in 2019

Matt Stone/MediaNews Group/Boston Herald
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Jorge Castillo of the Los Angeles Times reports that the Cubs, Red Sox, and Yankees exceeded the competitive balance tax (more colloquially known as the luxury tax) threshold for the 2019 season, set at $206 million. It will rise to $208 million for the 2020 season and $210 million in 2021.

Teams that exceed the CBT threshold pay a penalty on the overage, which is compounded depending on how consistently they have exceeded the threshold. The base penalty is 20 percent. If a team has exceeded it in a second consecutive year, the penalty rises to 30 percent. Three or more consecutive seasons yields a 50 percent tax on the overage. Furthermore, teams that exceed the CBT threshold by $20-40 million see an additional 12 percent tax. Above $40 million brings a 42.5 percent penalty which rises to 45 percent if the team exceeds the CBT by more than $40 million in a consecutive year.

The luxury tax has acted as a de facto salary cap. Front offices typically have gone out of their way not to exceed it, especially in recent years. The Cubs, Red Sox, and Yankees are each widely believed to be looking to stay below $208 million in 2020.

In pursuit of payroll efficiency, the Cubs are believed to be willing to listen to offers for catcher Willson Contreras, third baseman Kris Bryant, outfielders Kyle Scharber, Albert Almora, and Ian Happ, as well as pitcher José Quintana. The Red Sox are believed to be pursuing trades of outfielder Mookie Betts and/or J.D. Martinez. Outfielder Jackie Bradley Jr. is also believed to be available.

As we have been discussing the ongoing labor tension in baseball lately, one wonders if the CBT threshold might also be changed within the next collective bargaining agreement. It has served ownership well, giving them something to point at as a reason not to invest as much into putting together a competitive and entertaining product for fans.