Valencia Trade Value

[wildcard]

6 hours ago, theocean said:

I don't think the O's will have to include money in any Valencia deal. But, I think that the Blue Jays/Red Sox trade shows that teams are really trying to stay under their luxury tax thresholds - - which could become a factor in a Machado trade.

Boston has a team payroll on 233m.  They have to be way over their luxury tax threshold.

[eddie83]

Really thought Danny was a good fit in Boston. Pearce makes sense for them. Pearce has much better defensive reputation.  

[weams]

6 hours ago, Luke-OH said:

Valencia is making 1.2M the entire season, Pierce is making 6.25M. A team acquiring Valencia will be on the hook for less than 1M without the Orioles paying anything.

Signing Valencia has been much smarter than signing Steve Pearce. 

[mdbdotcom]

13 minutes ago, weams said:

Signing Valencia has been much smarter than signing Steve Pearce. 

If only they hadn't signed Tillman and Rasmus.

[Can_of_corn]

Just now, mdbdotcom said:

If only they hadn't signed Tillman and Rasmus.

They would only be on pace to lose 100 games?

[mdbdotcom]

1 minute ago, Can_of_corn said:

They would only be on pace to lose 100 games?

And save $6 million.

[theocean]

41 minutes ago, wildcard said:

Boston has a team payroll on 233m.  They have to be way over their luxury tax threshold.

They are - but the amount a team is over the luxury tax threshold determines the tax rate.

http://m.mlb.com/glossary/transactions/competitive-balance-tax

Quote

Clubs that exceed the threshold by $20 million to $40 million are also subject to a 12 percent surtax. Meanwhile, those who exceed it by more than $40 million are taxed at a 42.5 percent rate the first time and a 45 percent rate if they exceed it by more than $40 million again the following year(s).

Beginning in 2018, clubs that are $40 million or more above the threshold shall have their highest selection in the next Rule 4 Draft moved back 10 places unless the pick falls in the top six. In that case, the team will have its second-highest selection moved back 10 places instead.