Phillies avoid luxury tax in 2011

Share

As the Phillies payroll has risen in recent seasons, the team has become more aware of the competitive-balance (or luxury) tax threshold.

Team officials were very cognizant of the 178 million threshold as they made deals during the 2011 season.

So, where did the Phils end up?

We were successful at staying under, general manager Ruben Amaro Jr. said Wednesday.
The Phils payroll for 2011, as calculated by Major League Baseball for tax purposes, was between 177 million and 178 million, third highest in the majors behind the Yankees and Red Sox.

Teams have recently been made aware of their final payrolls. Only the Yankees and Red Sox, according to sources, will pay luxury tax for the 2011 season. The Yankees opened the season with a payroll of over 200 million. The Red Sox opened at over 161 million. The Phillies opened at over 172 million. The Yankees and Red Sox both paid a tax in 2010, as well.

Major League Baseball uses a complex formula that includes the average annual value of contracts for players on the 40-man roster, as well as benefits and bonuses when tabulating payrolls.

Teams exceeding the tax threshold for the first time pay 22.5 percent for every dollar spent over the threshold. The Phillies view that as empty payroll.

The threshold will remain at 178 million for 2012.

Were working to try to be successful at staying under again, Amaro said.

The Phillies have already committed about 136 million to 16 players for 2012. Cole Hamels and Hunter Pence are both eligible for salary arbitration and will get significant raises. Hamels made 9.5 million in 2011 and Pence 6.9 million.

E-mail Jim Salisbury at jsalisbury@comcastsportsnet.com

Contact Us