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Boston Red Sox Payroll In 2016 + Contracts Going Forward

With adding the contracts of David Price and Craig Kimbrel in recent player moves, this pushes Boston to near $200 MIL in team payroll for 2016. I think they should try to add a few pitchers near the 2016 Trade deadline. With a lot of money tied up in the future, any player they take on should have their contracts end in 2016. Boston stands to pay 17.5% for money spent over the $189 MIL limit. They could run with a $220 MIL salaried club in 2016 and only pay around $6 MIL in additional fees. Do it, and pale it back afterwards.

With adding the contracts of David Price and Craig Kimbrel in recent player moves, this pushes Boston to near $200 MIL in team payroll for 2016. I think they should try to add a few pitchers near the 2016 Trade deadline. With a lot of money tied up in the future, any player they take on should have their contracts end in 2016. Boston stands to pay 17.5% for money spent over the $189 MIL limit. They could run with a $220 MIL salaried club in 2016 and only pay around $6 MIL in additional fees. Do it, and pale it back afterwards.

Hunter Stokes (Chief Writer/Part-Owner) 

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Well the Boston Red Sox are finally going to join the Dodgers and Yankees as teams that cross the Luxury Tax Threshold for 2016.  This was made possible by recently picking up  David Price for 7 YRs at $31 MIL average per year.

Already in 2017, the team is committed for around $162 MIL – and that is without their stalwart DH of David Ortiz anymore.  2018, the salary obligations are at $151 MIL, and the franchise has already lumped $139 MIL on the books fr the 2019 cash.

This is a leap of faith for the franchise, as they were always reluctant to pay top dollars for Free Agent Pitchers.

Last year’s signings of Pablo Sandoval and Hanley Ramirez are looking like poor moves right now, however they can be helped with bounce back years in 2016.

Strike while the iron is hot. The Red Sox have a ton of offensive talent that is under team control for many years. The way to compliment this is to add Free Agent aces. By adding Price to the staff, it takes the pressure off of the the rotation guys could compete in the next few years. Price will earn $217 MIL over the next 7 years, but does carry an opt out clause after the 2018 season, where he will still be owed $127 MIL over four years from 2019 - 2022.

Strike while the iron is hot. The Red Sox have a ton of offensive talent that is under team control for many years. The way to compliment this is to add Free Agent aces. By adding Price to the staff, it takes the pressure off of the rotation guys could compete in the next few years. The 30 Year old  will earn $217 MIL over the next 7 years, but does carry an opt out clause after the 2018 season, where he will still be owed $127 MIL over four years from 2019 – 2022.

Speaking of bouncing back, the Red Sox will also need Rick Porcello to pitch better in 2016.  His contract now pays him $82.5 MIL over the next 4 years.

2B Dustin Pedroia is set to earn $85 MIL over the next 6 years as well.

It is imperative that the organization can receive some play from entry level players like Jackie Bradley JR. to go with budding ALL – Stars in CF Mookie Betts and Xander Bogaerts.

Of course these future salaries don’t even include the Yoan Moncada deal.  He should make his way to the Majors over the next few years.  He received a $31.5 MIL signing bonus, that needs to be paid in full within three years of inking his deal.

Lost money comes from Allen Craig.  He will cost the franchise $9 MIL in 2016 and $11 MIL in 2017.   I guess when you dole out enough big long term contracts, sooner or later you will eat some dough.

Lets face it.  The Dodgers bailed them out of their abhorrent contracts with Carl Crawford, Adrian Gonzalez and Josh Beckett – while giving them enough flexibility for their 2013 World Series roster revamp.

The Red Sox will need to lean off signing too many Free Agents in the near future.  That is why it is also paramount that Rusney Castillo and Yoan Moncada are part of the Roster for the majority of the next half a dozen years.

Bogaerts wont even starting earning Arbitration until 2017, while Betts has to wait for 2018 to start.

It is likely the club will pay Craig Kimbrel $37.5 MIL to close for them over the next 3 years.  That is not a bad sum for a lifetime ERA of 1.63 he will bring into Boston from 348.1 career Innings.

In addition to losing David Ortiz after 2016, the franchise may also lose Bullpen pieces Koji Uehara and Junichi Tazawa.

The one decent part about their payroll is that only 3 players are even in Arbitration years heading to 2016.  One is the aforementioned Tazawa in year 3, while Joe Kelly and Robbie Ross are in year 1.  All of them only project to earnt $7.6 MIL aggregate.

I can’t see Boston really needing anymore acquisitions for cash through Free Agency.  If they are winning a lot by the Trade Deadline, look for them to take on some players.

Even at a 1st year penalty of going over the Luxury Tax, it will cost them just 12.5% of money spent over the $189 MIL limit. 

Granted, they should pick up guys who are not signed beyond 2016 – as that mark goes up to 30% in year two over, 40% in year 3, and 50% for every other year after.

Of course the landscape of the Luxury Tax Threshold may change when the new Collective Bargaining Agreement is signed between the MLB owners and MLB Players Association.  The current deal ends after next campaign.

Guaranteed Contracts/POS/AGE:

David Price SP (30):  The most total money ever given to a Starting Pitcher in a contract of $217 MIL – breaks down with $30 MIL each year from 2016 – 2018, $31 MIL in 2019, and $32 MIL for the year of 2020 – 2022.

The LHP has an opt out clause after 2018. That would leave $127 MIL over the last 4 seasons if he were to do that.

Pablo Sandoval 3B (29);  The rotund player makes $17.6 MIL in both 2016 and 2017, and then $18.6 MIL for the 2018 and 2019 years.  In 2020, there is a $17 MIL Team Option – or a $5 MIL Buyout.

Hanley Ramirez 1B (32):  Ramirez makes $22.8 MIL for the years of 2016 – 2018, before a Vesting Option kicks in for 2019 at $22 MIL.  Ramirez needs 1,050 plate appearances in 2017 – 18 for the 2019 $22.0 MIL to be accelerated.

Dustin Pedroia 2B (32):  The former AL MVP will earn $13 MIL in 2016, $15 MIL in 2017. $16 MIL in 2018, $15 MIL in 2019, $13 MIL in 2020 and $12 MIL in 2021.  That is 6 YRs/$85 MIL from this point forward.

Rick Porcello SP (27):  Will earn $20.1 MIL in 2016 and 2017 – before bumping up to $21.1 MIL in 2018 and 2019.
 
Rusney Castillo OF (28):  Castillo earns $11.3 MIL in 2016 and 2017, $11.8 MIL for 2018 and 2019 – and makes $14.3 MIL in 2020.  The Cuban OF can opt out after the 2019 season.
 
David Ortiz DH (40):  This is the last year for the Boston great, and he will earn $16 MIL in 2016.
 
Craig Kimbrel CL (28):  The new Closer makes $11.3 MIL in 2016, $13.3 MIL in 2017  and there is a Team Option for $13 MIL in 2018 – that comes with $1 MIL Buyout.
 
Koji Uehara RP (40):  In the last year of his career too, Uehara earns $9.0 MIL in 2016.
 
Clay Buchholz SP (31):  Makes $13.0 MIL in 2016, and there is a Team Option of $13.5 in 2017, with a Buyout of 500K.
 
Chris Young (32):  The veteran OF earns both $6.5 MIL in both 2016 and 2017.
 
Ryan Hanigan C (35):  Makes $3.7 MIL with a Team Option in 2017 of $3.75 – that comes with a 800K Buyout.

Total Money for this Category – $174.1 MIL

Arbitration Eligible/POS/AGE

1st Year

Joe Kelly SP (28):  Is slated to earn $3.3 MIL in 2016, is Arbitration Eligible from 2017 – 2018 and a Free Agent in 2019.

Robbie Ross SP/RP (27):  Projected to earn $1.1 MIL in 2016 is Arbitration Eligible from 2017 – 2018 and a Free Agent in 2019.

Total Money for this Category – $4.4 MIL:  Total Team Salary – $178.9 MIL

3rd Year

Junichi Tazawa RP (30):  Should make $3.3 MIL in 2016 and a Free Agent.

Total Money for this Category – $3.3 MIL:  Total Team Salary – $182.4 MIL

Dead Money POS/AGE:

Carl Crawford OF (35):  Will be paid out the $857K for both 2016 and 2017 and then be done.

Adrian Gonzalez 1B (34):  Will be paid out the $857K for both 2016 and 2017 and then be done.

Total Money for this Category – $1.7 MIL:  Total Team Salary – $184.1 MIL

Buried Contracts/Minors

Allen Craig 1B/OF (34):  The man will be paid $9 MIL in 2016 and $11 MIL in 2017 and is currently off of he 40 man roster.  The club will done paying him by then.

Sandy Leon C (27):  The Veteran Catcher is going to cost the club $534K in 2016.  That is all the Red Sox are on the hook for.

Total Money for this Category – $9.5 MIL:  Total Team Salary – $193.6 MIL

Entry Level Contracts POS/AGE

Brock Holt UT (28): Is Arbitration Eligible from 2017 – 2019 and a Free Agent in 2020.

Xander Bogaerts SS (23):  Is Arbitration Eligible from 2017 – 2019 and a Free Agent in 2020.

Jackie Bradley JR. (26):  Is Arbitration Eligible from 2017 – 2020 and a Free Agent in 2021.

Tommy Layne RP (31):    Is Arbitration Eligible from 2018 – 2020 and a Free Agent in 2021.

Roenis Elias SP (28):  Is Arbitration Eligible from 2018 – 2020 and a Free Agent in 2021.

Steven Wright (32):  Is Arbitration Eligible from 2018 – 2020 and a Free Agent in 2021.

Mookie Betts  CF (23):  Is Arbitration Eligible from 2018 – 2020 and a Free Agent in 2021.

Carson Smith RP (26):  Is Arbitration Eligible from 2018 – 2020 and a Free Agent in 2021.

Blake Swihart C (26):  Is Arbitration Eligible from 2018 – 2021 and a Free Agent in 2022.

Heath Hembree RP (27):  Is Arbitration Eligible from 2019 – 2021 and a Free Agent in 2022.

Eduardo Rodriguez SP (23):  Is Arbitration Eligible from 2019 – 2021 and a Free Agent in 2022.

Matt Barnes RP (26): Is Arbitration Eligible from 2019 – 2021 and a Free Agent in 2022.

Travis Shaw 1B/3B (26):  Is Arbitration Eligible from 2019 – 2021 and a Free Agent in 2022.

Henry Owens SP (24):  Is Arbitration Eligible from 2019 – 2021 and a Free Agent in 2022.

Deven Marrero UT (25):  Is Arbitration Eligible from 2019 – 2021 and a Free Agent in 2022.

Noe Ramirez RP (26):  Is Arbitration Eligible from 2019 – 2021 and a Free Agent in 2022.

Brian Johnson SP (24):  Is Arbitration Eligible from 2019 – 2021 and a Free Agent in 2022.

Total Money for this Category – $7.9 MIL:  Total Team Payroll – $201.3 MIL.

If the totals all stand up Boston will join the Yankees and Dodgers as the only clubs over $200 MIL in total team salary for 2016.

This amount of money should not deter the Red Sox from adding payroll throughout the year, although I think they don’t want to add much money to the future payroll in years considering the new CBA may not be as nice to Luxury Tax Threshold abusers.

As 1st time over the limit of $189 MIL in 2016, Boston will pay a 17.5% penalty for every dollar spent beyond that.  I project them to end at $220 MIL, which would yield about a $5.5 MIL fee for next season.

David Ortiz is incredible based on the consistent numbers he has put forth since everyone thought his career was winding down several years ago. The 40 Year Old DH continues to bash homers, win games, and now with a flurry of trades, the organization has given him some reinforcements on offense. This winter around the club needs to work on the other side of the ball. Boston has done well in drafting/signing position players, however the team can't wait to develop a #1 style of pitcher. They need to win right now.

David Ortiz is incredible based on the consistent numbers he has put forth since everyone thought his career was winding down several years ago. The 40 Year Old DH continues to bash homers, win games, and now with a flurry of trades, and Free Agent signings, the organization has given him some reinforcements on offense and Pitching.   He will earn $16 MIL in 2016 – and has announced that he will retire at the end of the upcoming year.

*** The views and opinions expressed in this report are those of the author and do not necessarily reflect the views of mlbreports.com and their partners***

A Big thanks goes out to our chief writer Hunter Stokes for preparing today’s feature post.

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Posted on December 22, 2015, in MLB Payroll and Contracts and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. 1 Comment.

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