Angels’ Rebuilding Plan Falters, Still Crossing Luxury Tax Line
The Los Angeles Angels, in their effort to rebuild the team, have encountered hurdles that have prevented them from avoiding the luxury tax. According to Orange County Register’s Jeff Fletcher, the team waived pitcher Lucas Giolito and traded off five major players in late August. Although the goal was to reduce the team’s annual salary and stay below the luxury tax line, the presence of outfielder Randall Grichick, who has hit a total of 187 home runs, has caused them to exceed it.
Failed Attempts to Stay Below Luxury Tax
Despite the release of five key players, the team managed to lower its total annual salary by over $5 million. While this amount appears to be below the luxury tax line for the current season, Fletcher reveals that the Angels are still slightly above it due to Grichick’s annual salary of $1.7 million, which they did not acquire.
Implications for the Angels
In 2023, the Angels will pay less luxury tax, but in 2024, the penalty will increase to 30% if they exceed the line again, rather than the current 20%. General Manager Minassian acknowledges the impact this has on negotiations for a contract extension with pitcher Shohei Ohtani. The team is likely to submit a qualifying offer to Ohtani, but the exceeding of the luxury tax line affects the potential compensation in the MLB draft.
In the past, if Ohtani were to transfer to another team below the taxable limit, the Angels would have received compensation in the second round of the draft. However, with the team crossing the line this time, the compensation would now be pushed to the fourth round or later. This setback significantly hampers the team’s rebuilding efforts and has garnered negative reactions from fans, who express disappointment and frustration about the situation.
It remains to be seen how the Angels will address these challenges and whether they can strike a balance between rebuilding the team and adhering to the luxury tax regulations.
Local newspaper reporter Fletcher: “It turns out to be a little higher than the taxable line of the luxury tax.”
The Angels, to whom Shohei Ohtani belongs, seem to have stumbled even with the team’s rebuilding plan. In late August, pitcher Lucas Giolito and others were waived, and five major players were traded to other teams. The goal was to reduce the team’s total annual salary to avoid the luxury tax, but it failed to avoid the luxury tax because outfielder Randall Grichick, who hit 187 total homers, stayed. This is reported by Jeff Fletcher of the Orange County Register.
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The remainder of Giolito’s annual salary who moved to Guardians will be paid by the transfer destination. With the release of the five main players this time, the total has been reduced by more than $5 million (about 728 million yen). Although it seems below the luxury tax line for this season, the total annual salary of $233 million (about ¥34 billion), Fletcher said, “The Angels are slightly above the luxury tax line .It seems that[y swm dros ben ]less than the $1.7 million annual salary of Randall Glicick, who was not acquired.”
The Angels will pay less luxury tax in 2023, but if they exceed it in 2024, “they will have to pay 30%, not 20%.” As for the team’s total annual salary this season exceeding the taxable line of the luxury tax, GM Minassian said, “Let’s talk about it when we start making the 2024 roster. However, when we talked (with the owners ),) There will be no impact,” but it will have a significant impact on the negotiations to stay with Otani, who is aiming for a contract extension.
The team is likely to submit a qualifying offer to Otani at this stage. Even if he transferred to another team, if he was below the taxable line of luxury tax, he would have been able to get the right to nominate compensation for the second round of the draft. However, with the tax line over this time, this right to nominate compensation is now in the fourth round or later. This is a huge blow to rebuilding the team. Many comments were collected such as “It’s sad, when Ohtani leaves, you can only get compensation for the 4th round”, “Worse news”, “Worse”, “Let’s put Ohtani in the waiver and ‘to release”, “This team is hopeless”. there are
(Full Account editorial section)
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