menu

Luxury Tax Should Not Be An Impediment For Mets

The Mets did good by hiring Carlos Beltran as the 22nd manager in team history. In Beltran, they have someone who is a very good communicator who has the ability to unite a clubhouse while also teaching players things to help them significantly improve. Given his skill set, he can be a superstar manager like he was a superstar player.

However, Beltran in and of himself is not going to be enough to take this Mets team over the top.

With Zack Wheeler being a free agent, the team is going to need a fifth starter. At the moment, internal options like Walker Lockett and Corey Oswalt are not ready to step up to fill that void. The team has mentioned Robert Gsellman and Seth Lugo as options, but that only serves to further damage what is already a weak bullpen.

In 2019, Lugo and Justin Wilson were the only dependable relievers in that bullpen. When you look at it, even assuming a bounce-back from Edwin Diaz, this team still needs at least two big arms in the bullpen this offseason. They will need more if Gsellman or Lugo move to the rotation making that decision to rob Peter to pay Paul.

The Mets also need a center fielder, third baseman, backup catcher, and just plain old depth. With Juan Lagares having his option declined, they need a defensive replacement. The team cannot rely upon Jed Lowrie to contribute anything. Tomas Nido was a good defensive catcher, but with his complete inability to hit, you wonder how much you can rely upon him to be on the roster for a full season.

All told, this is a Mets roster which needs a lot of work. Given the dearth of prospects at the Double-A and Triple-A level last year, the team is going to have to acquire those players this offseason instead of looking from within. With all the prospects the Mets traded away over the last year, it is going to be difficult to trade their way back to contention.

That leaves the Mets with spending, and with the Mets being owned by the Wilpons, that is a dicey proposition.

Now, there are some who will say the Mets did spend last year. According to Spotrac, the Mets 2019 payroll was $160.5 million which ranked 10th in the majors.

Lost in that was how David Wright‘s $15 million is included in that amount. Wright had a portion of that salary covered by insurance, and the Mets renegotiated future payments with Wright. The figure also included Yoenis Cespedes‘ $29 million salary which was covered by insurance. Between Wright’s full salary and 70% of Cespedes’ salary being covered, the Mets payroll was reduced by $35.5 million.

That reduces the Mets REAL 2019 payroll to $125 million, which would’ve ranked 18th in the majors. That number is all the worse when you consider Adeiny Hechavarria and Carlos Gomez were cut before roster bonuses were due, and Jason Vargas was traded so the team could clear payroll space after obtaining Marcus Stroman.

As of today, the Mets payroll is $168.8 million. Now, that figure includes Wright’s $12 million, Cespedes’ $29.5 million, and the $5.1 projected arbitration figure due Joe Panik. On that front, as noted earlier, Wright’s contract was been renegotiated, and it is very likely Panik is non-tendered. With respect to Cespedes, there will be no insurance protection this year.

When you dig a little more, that $168.8 includes Jacob deGrom‘s $27.5 million salary. On that front, the $27.5 million figure is for competitive balance tax purposes only. In reality, deGrom is only making $13 million meaning $12.5 million of his salary is deferred.

This means the Mets ACTUAL payroll obligations are $139.2million. That is before the Mets go forward looking to add players this offseason. Still, people will point to the competitive balance tax as a reason why the Mets can’t spend. Let’s take a look at it for a second.

Putting reason aside, assuming the Mets sign Wheeler to a deal with a $30 million average annual value raising the payroll obligations to $188.8. That puts the Mets $19.2 million short of the $208 competitive balance tax figure.

Taking a more realistic approach, assume the Mets don’t go and sign Anthony Rendon. For a minute, just assume the Mets sign a Mike Moustakas ($10 million AAV), Drew Pomeranz ($8 million AAV), and a backup catcher like Jonathan Lucroy ($2 million AAV). Assume the rest of the roster is filled out for a cost of around $5 million, which is probably the very low end.

Assuming Panik is non-tendered, that puts competitive balance payroll at $213.8 million. That would incur the “tax penalty.” The amount of the penalty? It would only be $1.2 million. That’s it.

When looking at the $1.2 million remember the Mets already have $12 million off the books with Wright and $12.5 million deferred with deGrom. As a result, the $1.2 million is more than covered. When you look at it, the Mets can really blow past that $208 million this year.

In fact, the Mets should considering they have Cespedes’$29 million coming off the books completely, and the same can be said for Wright’s $12 million. Essentially, the Mets have $41 million coming off the books.

Whether the Mets will be proactive remains to be seen. If history is any measure, they won’t. Just remember, when they don’t, we should not let them invoke the competitive balance tax as a reason because it is not in any way a real impediment.

The only impediment to the Mets spending are the Mets themselves, and that is not in any way acceptable.

5 thoughts on “Luxury Tax Should Not Be An Impediment For Mets”

  1. Oldbackstop says:

    “In Beltran, they have someone who is a very good communicator who has the ability to unite a clubhouse while also teaching players things to help them significantly improve. Given his skill set, he can be a superstar manager like he was a superstar player.”

    Well, that is all Big Rock Candy Mountain, like every new manager press conference ever, but how do you have the slightest idea of that other than hope?

    What happens when the first player with a medical issue wants live his own life and make his own decisions, and he says “Hey, Beltran did.”

    In fact, is there a worse example you can think of to represent an organization to a player? Maybe he’ll go horse backing riding with Yo-C…

    1. metsdaddy says:

      If you don’t want people to make their own medical deciosob

    2. metsdaddy says:

      I’m sorry, but why shouldn’t players make their own medical decisions?

  2. Oldbackstop says:

    “The Mets did good by hiring Carlos Beltran as the 22nd manager in team history.”

    They did well. Superman does good.

    1. metsdaddy says:

      In this context, Good was the correct word.

Leave a Reply

Your email address will not be published. Required fields are marked *