For the first time since 2009, the Red Sox payroll fell below the luxury tax threshold. According to The Associated Press, the team's payroll as calculated for luxury tax purposes (factoring in average annual value of salaries of players on the 40-man roster, adjustments for cash in trades, benefits and bonuses) fell $47,177 under the $178 million luxury tax threshold in 2012, with the team's franchise altering trade of Adrian Gonzalez, Carl Crawford, Josh Beckett and Nick Punto having removed just enough salary to push the team under the luxury tax threshold.
The Sox had paid $3.5 million in luxury tax in 2011 and $1.4 million in 2010. The team had anticipated a payroll of about $190 million in 2012, which would have resulted in a luxury tax payment of approximately $5 million. However, the Dodgers trade removed over $13 million from the team's books, enough to knock the team below the threshold. (The approximately $327,000 that the Dodgers paid Punto proved a difference-maker.)
Because the Sox were under the threshold, the next time that they exceed the luxury tax threshold (which is once again $178 million in 2013 and $189 million in 2014), their tax rate will be 17.5 percent. The team would have owed 40 percent on any payroll in excess of $178 million in 2012.
The Yankees, meanwhile, owe an $18.9 million luxury tax bill, the 10th straight year they've paid the luxury tax. New York was the only team to pay the competitive balance tax.
For complete Red Sox coverage, visit weei.com/redsox.
We check in for our weekly update from Bill Belichick and get his take on the Pats win over the Texans on the road, the benching of Stevan Ridley, and Antonio Smith's thinly veiled Spygate comments after the Texans lost.
Patriots’ defensive end, Rob Ninkovich, joins Mut and Merloni on a Patriots Monday after the team’s victory in Houston. Rob addresses the postgame comments of Texans’ defensive lineman Antonio Smith and the defense struggling against the run.
Tom Brady joined the show fresh off the teams 9th win of the season in Houston. He dismissed Antonio Smith's spying allegations and told the guys he has already moved on.
Eagle checks in to give Grande and Max a perspective on the Brooklyn Nets after they acquired Paul Pierce and Kevin Garnett via trade earlier this summer. He breaks down what he thinks the future holds for the Nets after completing this blockbuster deal.
Sean Grande and Cedric Maxwell take some time and look back at the history between the Celtics and the Lakers, specifically the legendary rivalry between Magic and Bird. Legendary broadcaster, Ian Eagle, checks in to give the Brooklyn perspective as KG and Paul Pierce settle into their new home. Sean and Max also reveal the behind the scenes details surrounding Max’s famous “I got the ball” moment.
In the first hour of this edition of the Celtics Summer Cooler, Grande and Max analyze the trade that sent Fab Melo out of Boston. Also in this hour, Max sets the story straight about his history with Larry Bird.
The manager of the 2013 World Series Champion Boston Red Sox joins Salk and Holley at Mohegan Sun. Farrell chats with Mike and Michael about all the hot stove moves including the departure of centerfielder Jacoby Ellsbury.
Rob Bradford and Alex Speier examine all the off-season moves on the Hot Stove Show. Rob and Alex also catch up with Rangers hitting coach Dave Magadan and ask him about the Rangers acquiring first baseman Prince Fielder.
Rob Bradford and Alex Speier breakdown all the latest news from the MLB offseason. Rob and Alex also speak with Red Sox catcher David Ross and Mike Napoli's agent Brian Grieper.
Shawn Thornton joined the show and discussed the teams long layoff leading into their game tomorrow night in Montreal. He told the guys that he anticipates fighting being a part of hockey for years to come.
Lucic joins Danny Picard to talk some hockey after the team’s overtime win against the Carolina Hurricanes. Danny asks Lucic about David Krejci’s game winner yesterday and hockey outsiders that are trying to change the game.
Shawn Thornton joined the show fresh off his big night at MSG and talked about his recent goal scoring prowess. Shawn said that no matter who his line mates are he is always going to be a fourth liner.
Mike Lupica of the Daily News joined the show to give the New York reaction to the Ellsbury signing. He said that the Yankees drastically overpaid.
Phil from Newton called in to express his undying love for John Dennis's broadcasting skills. He is only human.
Johnny Damon joins Mut and Merloni to clear the air about his free agent signing with the Yankees and discusses Ellsbury's signing.
Mut and Merloni react to former Red Sox OF Jacoby Ellsbury signing with the Yankees.
Buster Olney joins Mut and Merloni to discuss Jacoby Ellsbury signing with the Yankees and the possibility of the Red Sox trading for Andre Ethier.
Today’s topics include frustrating superstars, Boston-New York rivalries, tough losses and more.
Salk and Holley discuss the similarities and differences between Jacoby Ellsbury’s situation and Johnny Damon’s departure eight years ago. Mike and Michael analyze what the fan reaction could be when Ellsbury returns to Fenway in pinstripes.
Ryder talks with WEEI.com's Chris Price about the Patriots upcoming game with the Cleveland Browns, and Stevan Ridley's status on the team.
Alex joins the show and gives his thoughts on the Jacoby Ellsbury deal, and what prospects the Red Sox have to fill the hole left in the lineup, or trade pieces to get a player who can fill the void.
John talks to Rob and gets his thoughts on the Yankees signing Jacoby Ellsbury, the Red Sox signing AJ Pierzynski, and Jarrod Saltalamacchia signing with Miami.
The guys discuss the breaking story of Pierzynski agreeing to a deal with the Red Sox.More from this show
We check in for our weekly update from Bill Belichick and get his take on the Pats' win over the Texans on the road, the benching of Stevan Ridley, and Antonio Smith's thinly veiled Spygate comments after the Texans lost.More from this show