The landscape of the MLB could change in a major way. According to a report from Evan Drellich and Ken Rosenthal of The Athletic, the league has come up with a proposal that could affect every team’s payroll.
The MLB’s proposal would lower the luxury-tax threshold from $210 million to $180 million. Teams that pass the threshold would have to pay a 25-percent tax under this proposal.
Additionally, this proposal would force teams to keep their payroll above $100 million. That stipulation might be more important than the luxury-tax threshold when you take into account that 12 MLB teams have a payroll under $100 million this year.
Entering this season, the Baltimore Orioles had a payroll of roughly $53 million. They’d have to double their payroll if this proposal gets approved.
— Evan Drellich (@EvanDrellich) August 18, 2021
So far, the early responses to this proposal are mixed.
Mike Persak of the Pittsburgh Post-Gazette appears to be against this proposal, tweeting “These thresholds ain’t it.”
These thresholds ain’t it https://t.co/W7m8Jwd7MR
— Mike Persak (@MikeDPersak) August 18, 2021
Some fans believe it’s time for teams to have a payroll requirement. Making teams spend $100 million might seem harsh, but it would eliminate tanking.
“Salary floor? Manfred finally got one right,” one fan tweeted. “It’s a miracle.”
Salary floor? Manfred finally got one right! It’s a miracle https://t.co/SOjFGXguli
— Mark Deska Ŧ (@MDeskaTTU) August 18, 2021
Regardless if you’re for or against this proposal, there’s no denying that it would seriously impact at least half of the MLB.
“Doubt this will pass, but it’s fascinating,” Jason Mackey tweeted. “Hit those who go over the first luxury tax threshold harder, shift money to teams not spending as much and establish a $100 million floor.”
Doubt this will pass, but it’s fascinating. Hit those who go over the first luxury tax threshold harder, shift money to teams not spending as much and establish a $100 million floor. https://t.co/6EcC4SA7iA
— Jason Mackey (@JMackeyPG) August 18, 2021
The collective bargaining agreement between the MLB and the players’ union is set to expire on Dec. 1. This means the two sides will have to figure something out in the coming months if they want to avoid a work stoppage.
MLB fans, do you like these proposed thresholds?
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