April 1st


Mike Trout –  Announces Retirement

In a surprising turn of events, Mike Trout has announced his retirement after 9 seasons in the bigs, paving his way to 2 MVPs, 7 All Star appearances, and a Rookie of the Year award. He will conclude his no doubt hall of fame career with a .307/.417/.573 slash line. Congrats to Mike Trout on a successful career.


Miguel Andujar – Injury

Yesterday the Yankees announced a labrum tear in Andujar’s shoulder. He will be shut down for two weeks, but season ending surgery is not off the table. With Didi still not expected to come back until the middle of the season, and Giancarlo Stanton hitting the IL with a bicep strain the Yankees have really taken a hit with their injury bug. 


Hunter Greene – Injury

Top pitching prospect and top draft pick Hunter Greene will undergo the needle on his elbow sidelining him all of 2019 and probably much of 2020. While only 19 years old, this is a huge setback to one who has turned so many heads. Greene has always been known for, and probably drafted for, his heater which reaches over 100 mph regularly. 


Giancarlo Stanton – Injury

The Yankees have placed Stanton on the IL with a bicep strain. Prospect Clint Frasier has been called up to take his place. Manager Aaron Boone told the media that Stanton could be out considerable time, as he is shut down for at least 10 days, and then will begin a rehab process. The goal they have set for him to return in by the end of the month. 


Daniel Murphy – Injury

After some speculation the past few days about a finger injury to Murphy, the Rockies have indeed placed Daniel on the IL. A fractured left index finger will sideline the infielder for at least “several weeks” writes Nick Groke of The Athletic. There is also some worries that the finger could have some tendon or ligament damage. 


Xander Bogaerts – Extended

The Red Sox announced an extension with their star shortstop Xander Bogaerts. Six years and $120 MM with an opt out after year 3, he will earn $20 each year, with some incentives based on award finishes. The second extension the Red Sox have given since the conclusion of 2018, the Red Sox are looking to keep their core players before several of them all hit free agency about the same time. Jackie Bradley Jr. looks to maybe be the next one as Mookie has said he wants to test free agency. 


Notes 

  • Jokes on you! Mike Trout isn’t retiring! April Fools lol 

PITCH OF THE DAY

Cardinal’s Jordan Hicks vs Pirates’ Corey Dickerson



Business of Baseball – Competitive Balance Tax

Definition

Each year, clubs that exceed a predetermined payroll threshold are subject to a Competitive Balance Tax — which is commonly referred to as a “luxury tax.” Those who carry payrolls above that threshold are taxed on each dollar above the threshold, with the tax rate increasing based on the number of consecutive years a club has exceeded the threshold.

The threshold was $189 million from 2014-16, but the following increases were put in place per the 2017-21 Collective Bargaining Agreement:

2017: $195 million*

2018: $197 million

2019: $206 million

2020: $208 million

2021: $210 million

*For 2017 only, clubs that exceed the threshold shall pay the average between what their luxury tax would be under the 2017-21 Collective Bargaining Agreement rules and what it would have been per the previous CBA.

A club exceeding the Competitive Balance Tax threshold for the first time must pay a 20 percent tax on all overages. A club exceeding the threshold for a second consecutive season will see that figure rise to 30 percent, and three or more straight seasons of exceeding the threshold comes with a 50 percent luxury tax. If a club dips below the luxury tax threshold for a season, the penalty level is reset. So, a club that exceeds the threshold for two straight seasons but then drops below that level would be back at 20 percent the next time it exceeds the threshold.

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.

History of the rule

The 2012-16 Collective Bargaining Agreement required clubs to pay a 17.5 percent luxury tax for first-time overages. Clubs that exceeded the threshold for two, three and four consecutive years were taxed at 30, 40 and 50 percent rates, respectively.

Example

In 2013, the Los Angeles Dodgers exceeded the Competitive Balance Tax threshold with a payroll well over $200 million in total. The Dodgers also exceeded the luxury tax threshold in 2014, 2015 and 2016, incurring progressively steeper penalties each year as a result.


Pitch of the Day Curtesy of @PitchingNinja

Business of Baseball Curtesy of MLB.com

Header Photo Curtesy of Halo Hangout

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