There was a time when the Red Sox were very careful to announce extensions after Opening Day. Players who hammered out the parameters of long-term deals in spring training but waited until after the first day of the season to announce them included David Ortiz, Coco Crisp, Josh Beckett, Clay Buchholz and Adrian Gonzalez.
The reasoning was sensible enough. If the extensions had become official prior to the start of the season, then the players’ salaries for the season for which they were under contract would be recalculated for luxury tax purposes. So, for instance, in 2011, Adrian Gonzalez made $6.3 million. Had his seven-year, $154 million extension become official when the Sox traded for him from the Padres or during spring training, his deal would have been treated as an eight-year, $160.3 million pact — meaning a luxury tax figure of just over the average annual value of $20 million a year. By waiting until mid-April to announce the deal, Gonzalez counted for just $6.3 million in 2011 — thus saving the Sox millions in luxury tax penalties that year.
That history created an expectation that, if the Sox reach agreements with David Ortiz (who is making $15 million in 2014 but who counts for $17 million against the luxury tax) and Jon Lester (who is making $13 million in 2014 on a team option, but whose luxury tax figure is approximately $9.37 million), they wouldn’t be announced until after the start of the regular season to avoid a potential luxury tax hit.
The new Collective Bargaining Agreement, which took effect starting in the 2012 season, eliminated the recalculation of a contract’s AAV as a result of an extension. So long as the second deal does nothing to alter the terms of the first, the two contracts are treated as separate.
So, if the Sox reach agreement with either player on an extension starts in 2015 and doesn’t alter what they’re owed for the coming season, then those new deals won’t alter the player’s salary as calculated for luxury tax purposes. If Ortiz agrees to a one-year extension, regardless of whether it’s for $15 million or $1 billion, his 2014 AAV would remain $17 million for the purposes of calculating the Sox’ luxury tax this year. Similarly, as long as a deal with Lester wouldn’t take effect until 2015, then the team could announce it tomorrow or in June with no difference in its implications for the 2014 payroll — the left-hander will count for $9.37 regardless of the timing of the announcement.
Even with that alteration, and despite the fact that a resolution of extension talks is expected before the end of spring training, that doesn’t necessarily mean that an announcement will happen in Fort Myers. The Sox may well decide that, if they reach agreement with either player, they’d prefer to save the announcement for the start of the regular season, most likely in Boston. Or perhaps it won’t be until the start of the regular season that the two sides will be able to finalize the details of an extension — if one is coming at all.
But regardless, the timing of any announcement won’t be driven by luxury tax implications. That aspect, at least, of extension strategy is now a thing of the past.
* – (WEEI.com was guilty of propagating the misunderstanding that an extension could alter a luxury tax hit for a season if announced prior to Opening Day. We regret the error.)
We had an impromptu visit from Peter King from SI / MMQB to our Fenway Studios and decided to talk some NFL and Patriots with him.
Pete talks with The Senator, Phil Perry about the Patriots trading for Dwayne Allen, ruling out a return to New England for Martellus Bennett. They also talk about the potential future of Patriots backup QB Jimmy Garoppolo and some of the big names in NFL free agency
Pete, Thornton and Price give their final thoughts and predictions for the Super Bowl.
Dale, Holley and Rich Keefe discuss NBA lottery pick Lonzo Ball with his very outspoken father Lavar Ball. The guys touch on the Celtics, his feud with his sons' high school coach, Lonzo being better than Steph Curry and much more.
Kirk, Gerry, and Alex Reimer discuss whether or not Isaiah Thomas will win a title in Boston.
Gerry, Kirk, and Trenni react to the Celtics loss against the Suns.
Joe and Tim talk with Red Sox right fielder Mookie Betts after he provided the big hit in the 10th inning driving in 3 runs as the Red Sox beat the Blue Jays 4-1. Mookie talks about playing behind a pitcher like Chris Sale, and the amount of strikeouts from Sale lightens his work in the outfield.
In the final hour Christian talks about the Celtics and their poor performance and how they can not let a player like Rondo beat them. The Aaron Hernandez saga in Christian's opinion is similar to a TV show. In the late night low light a mystic has predicted that WW3 will be starting in a few weeks and Christian wonders how do you become a mystic and can you make a career out of it.
Christian talks about the Patriots visiting the White House and Gronk interrupting Sean Spicer during his press conference. Aaron Hernandez was the big story of the day and alot of people had their theories of what happened and why now. The Bruins lose another close one to the Senators and Christian talks about how the offense needs to perform better because they got a great game from the goalie and defense.
Hour 4. While discussing what kind of music Aaron Hernandez may have liked, the guys realize they hate musicals. Robert Kennedy Jr. has voice spasms. The week ends with a tragedy.
Hour 3. A game by game breakdown of the Patriots schedule. Kirk has the Patriots losing 12 games. There is breaking news that Hernandez left a note for his gay jailhouse lover.
Hour 2. Mut, Gerry, and Kirk compare LeBron to Bird. Is he the second best player of all-time if he wins a fourth title? Headlines with Kirk features sound from “Hot Chocolate.” Rear Admiral broke down the B’s playoff series with Arcand.
HOUR - The last hour of the show was all over the place as the guys did a dry rehearsal of a wacky video they're supposed to record next week. They also look at the biggest games in the NFL next year, and Fauria rips off "Keefer Madness" with his "Fauria Euphoria."
HOUR 3 - The guys get into expectations for the Celtics who are down 2-0 to the Rajon Rondo-less Bulls. They also wonder how much the Celtics are listening to Brad Stevens. Christian is excited for Caitlyn Jenner's nude spread.
HOUR 2 - News breaks that Rajon Rondo is out indefinitely with a fractured thumb. Rondo was dynamite in game 2. The guys discuss whether or not the Celtics now stand a chance.
Last two hours focused on our winter teams as they struggle in their first round match-ups.
Finish out the week on Freestyle Friday talking mostly about the Aaron Hernandez suicide and how it will affect his family in hour #2.
Hour One of freestyle Friday focused mostly on the Celtics and their matchup vs the now Rondo-less Bulls.
Kirk Minihane, Springsteen super fan, is joined by Garry W. Tallent, founding member of the E Street Band. Kirk and Garry talk about what it's like on tour with Bruce, how the band goes about selecting songs for the tour, Garry's projects away from the band, and Garry's upcoming solo tour that will bring him to the New England area.
Kirk Minihane, future radio hall of famer, sits down with current radio hall of famer Howie Carr. Kirk and Howie talk about Howie's latest book Kennedy Babylon. If you like famous people engaging in sex scandals, hard drug taking, and murder this is the podcast for you. Its a fascinating look at Boston's most famous family and the problems that took the family down.
Kirk Minihane, host and overlord of the morning show, brings Gerry Callahan and producers Chris and Ken into the studio to hear his show proposal. Kirk is thinking about making some changes to the morning show and wants to hear his crew's opinion.
Ben sits down with Diego Fagundez to talk about Diego's rise through the ranks of the academy, his accomplishment of reaching 10,000 minutes as a homegrown player, and how he has evolved his game.
Rich and Ben discuss the Celtics poor performances in Games 1 & 2, how we have to change our predictions, Rajon Rondo's thumb injury, and who is to blame for the terrible start to the series.
Ken Laird and Chris Curtis recap the entire week of K&C shows in one mega Friday edition
Michele McPhee joins Kirk, Gerry, and Alex to talk about Hernandez’s suicide and the accusation that she may have contributed to his suicide.More from this show
Hour 4. While discussing what kind of music Aaron Hernandez may have liked, the guys realize they hate musicals. Robert Kennedy Jr. has voice spasms. The week ends with a tragedy.More from this show
Hour 3. A game by game breakdown of the Patriots schedule. Kirk has the Patriots losing 12 games. There is breaking news that Hernandez left a note for his gay jailhouse lover.More from this show
Hour 1. Mut believes Hernandez may have killed himself because of a threat. Trump is “done” with Brady after the quarterback skipped the White House visit.More from this show
Hour 2. Mut, Gerry, and Kirk compare LeBron to Bird. Is he the second best player of all-time if he wins a fourth title? Headlines with Kirk features sound from “Hot Chocolate.” Rear Admiral broke down the B’s playoff series with Arcand.More from this show