Phillies eyeing Luxury Tax loophole for 2020

PHILADELPHIA, PA - SEPTEMBER 29: Bryce Harper #3 of the Philadelphia Phillies in action against the Miami Marlins during a game at Citizens Bank Park on September 29, 2019 in Philadelphia, Pennsylvania. (Photo by Rich Schultz/Getty Images)
PHILADELPHIA, PA - SEPTEMBER 29: Bryce Harper #3 of the Philadelphia Phillies in action against the Miami Marlins during a game at Citizens Bank Park on September 29, 2019 in Philadelphia, Pennsylvania. (Photo by Rich Schultz/Getty Images)
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Gregorius is now the Phillies best defensive shortstop. Photo by Alex Trautwig/MLB Photos via Getty Images.

Limited competition:           

For the Phillies, borrowing from 2021’s available space manipulates the CBT with a one-time tax and an AAV payroll reset a 162 later. So, the basic idea is paying $1-3 million to ink a specific free agent but then avoid a second consecutive penalty: The Los Angeles Dodgers considered this to sign Cole.

In 2019, the Cubs finished at $242.89 million AAV and received the second level tax. But they are currently at $214 million AAV and must shed $6 million AAV despite a weakened relief corps. In fact, they are listening to proposals for third sacker Kris Bryant as a retooling effort.

The Red Sox had captured 2018.’s Fall Classic but didn’t re-up their closer because they were at $242.43 million AAV. Now, they are shopping David Price, and Mookie Betts wants to test free agency. Plus they are presently at $237.45 million AAV: They fired president Dave Dombrowski following 2019’s drop-off as a result.

After missing on Cole, the Los Angeles Angels increased their payroll to $177.08 million AAV with a superstar’s inking at third base. Yes, they have the AAV flexibility to sign a starter and can add to their bullpen.

Last summer, the Nationals reached $209.03 million AAV but are now at $176.51 million AAV. And even though they could spend for Josh Donaldson, they are preceding cautiously by not adding more relievers except for re-upping Daniel Hudson to avoid the 30 percent tax for transcending the CBT again.

In a similar situation, the Dodgers hit $209.67 million AAV for ’19 but are presently at $188.97 million AAV. However, they want to re-up Hyun-Jin Ryu, and they might pick up another late-inning fireman as well. But although they considered inking Cole, they may not want another penalty otherwise.