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The Mets are currently projected to pay $111M just in CBT taxes, which is more than the entire payroll of several teams.
The top of the bottom half… it has to be getting harder and harder to defend them… They’d have to spend $29MM more this winter just to get back into the top 10… and no one is counting on that…
Updated #MLB CBT Payrolls + Estimated Tax Bills
16. STL: $178M
17. SEA: $175M
18. DET: $137M
19. MIL: $136M
20. MIN: $129M
21. CLE: $121.6M
22. TB: $121M
23. ARI: $119M
24. WSH: $115M
25. MIA: $108M
26. KC: $103M
27. CIN: $86M
28. BAL: $85M
29. PIT: $77M
30. OAK: $70M2/2
— Spotrac (@spotrac) December 21, 2022
Since the annual net bottom line profits of MLB owners are a closely guarded state secret, they’ll never be disclosed. However, I’d be interested to know the yearly yield on a team like Oakland’s $70 MM payroll plus day to day operating expenses.
I’d also be willing to wager a dollar that teams such as NY Mets and NY Yankees will both realize tremendous profits on their respective $502 MM and $310 MM payrolls and day to day operating costs when the bottom line nets are determined. These guys aren’t laying this sort of money down on the counter at the teller’s window of a race track. I can’t imagine how Billy Jr. gets that rubber band to wrap around the large bankroll he realizes when over 3 million fans pass through the turnstiles once he’s placed his signature on the checks that comprise the Cardinals $178 MM payroll expense. The air is thin at the top of that stack.
it has to be getting harder and harder to defend them
Pretty soon we will be able to say DeWall** without getting crabbed at.
I am of the belief that the Yankees are making money with a $300M payroll. I am not so sure about the Mets with a $500M payroll. I thinking their spending is driven by an owner who is thinking like a fan and not looking at the bottom line.
I have to believe Cohen’s participation in the free agent market is driving up salaries as much or more than improved balance sheets.
I imagine most of the owners are not amused with Steve Cohen. He is making them look like cheapskates. I am not saying every team should spend like the Mets (they shouldn’t) but it is apparent than many could spend more than they do.
Cohen’s net worth is said to be in the range of $12B-$17B. Even if the Mets lost $100M per year it would take 120 years for him to burn through his $12B. I know that is an oversimplification since other factors are involved but it illustrates how his current spending levels are a drop in the bucket to his worth. I imagine most of the other owners, if not all, are worth at least $1B.
Sure, Cohen is spending like a madman, but let’s not lose sight of the fact that all the players he signed would have signed somewhere else, even if for a bit less money. I would hazard a guess those guys would have signed with a different top 10 team (or even a top 15 team), which if so, would mean the Cards would still be 16th in payroll – even if Cohen didn’t exist.
There is no salary cap in MLB. There are “Luxury Tax” penalties for exceeding a defined threshold, which is $233 MM this year. Cohen decided to blow it out.
No cap. Just tax. Regardless of the term used, simple arithmetic has proven that more cash = more W’s than ever before. Not WS or post-season W’s, but more W’s per team. That’s a fact.
Here’s a simple question to ponder…Why are MLB team owner finances kept secret from both the public and the player’s association? You can draw your own conclusions.
Same reason my private finances “are kept secret” from Joe public, it’s no-one else’s business. Key word is “private”.
I can’t wait till next year when the Redbirds beat the Mets four straight games in the NLCS. I bet 1td and Pugs will laugh at that one!
r/Esteemed Rat <~~~~who picked up his new 2023 Mustang on Monday!
Haha! Picked up that shiny new race car on Monday? You’ll be picking up those foxy young ladies by Friday!
BikeMike might appreciate the fact that the Rockies have a higher payroll than the Cardinals, but I wonder how Nolan Arenado feels about it?
The article is good (if you subscribe to The Athletic). It basically says a big-small market war is coming in MLB.
The ranking below suggests that at $4 billion, Bill DeWitt Jr. is MLB’s seventh-richest owner, wealthier than Hal Steinbrenner, for example. Mid-market team, but backed by a big market bank account?
I’ll just leave this right here – but it keeps going pic.twitter.com/W6OlP1KrLG
— John Anderson (@MrMet33) December 22, 2022
There used tô be a difference between the luxery tax and the competitive balance tax. Does that distinction still exist?
Different words for the same thing. Competitive Balance Tax = Luxury Tax.
However, “competitive balance” is broader because it also refers to compensatory draft picks given to bottom 10 teams in revenue or market size.
If you don’t have a subscription to the Athletic, you can read this free article
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