12:52PM: The Angels’ final tax number fell within just $30K of the threshold, the Orange County Register’s Jeff Fletcher reports.
11:28AM: The Angels’ final luxury tax calculations placed the team slightly under the $233MM threshold, according to The Athletic’s Ken Rosenthal. As a result, the Halos will both avoid paying any tax money and ensure that they will receive a higher compensatory draft pick should Shohei Ohtani depart in free agency. If Ohtani signs elsewhere, the Angels’ pick will fall after the second round of the 2024 draft, whereas the pick would’ve come after the fourth round as part of the penalties attached to teams who exceed the Competitive Balance Tax threshold.
This represents a difference of roughly 55-60 spots in the draft order for the Angels, which is no small matter even if a compensatory pick is a relatively thin silver lining for losing a generational talent like Ohtani. Staying under the tax line also means, however, that Los Angeles would face less of a penalty if it signs another free agent who rejected a qualifying offer. Signing such a player will now cost the Halos $500K in international bonus pool money and their second-highest pick in the 2024 draft, whereas if they had exceeded the CBT threshold, the Angels would’ve had to give up $1MM in international pool money and their second- and fifth-highest selections in the 2024 draft.
Since owner Arte Moreno has made a point of bringing big-name free agents to Anaheim, it wouldn’t be a surprise if the Halos responded to the possible loss of Ohtani by trying to obtain another star. It also can’t be ruled out that Ohtani might stay with the Angels after all, even if the expectation is that the AL MVP will depart for a team that can offer him a better chance at winning than the perennially disappointing Angels.
In avoiding a tax penalty, the Angels continue their streak of staying under the CBT threshold in every season since 2004, which was Moreno’s first full year as the club’s owner. As much as Moreno has been willing to splurge on big contracts, it has been clear that he has viewed the tax threshold as an unofficial salary cap, with this past season being the one exception. As part of a final push to retain Ohtani and finally end the Angels’ string of losing seasons, the club was aggressive throughout the summer in adding pieces to atone for injury losses, until a disastrous run in August ended their playoff hopes.
L.A. then pivoted by placing a big chunk of their roster on the waiver wire just before the September 1 deadline for postseason eligibility, hoping that contenders in need of reinforcements would make some claims and bring the Angels some salary relief. Given the specifics of the dollar figures and the narrow margin of error the Angels were working with, it wasn’t quite clear until today whether or not Los Angeles had gotten under the tax line or not, but it appears as though the team’s efforts weren’t for naught.
It would have been funny if all their machinations at the end left them a dollar over.
It still seems a bit crazy that there is any mystery at all. MLB should be able to assure teams that are close if they are over or they are not.
Not funny if you’re an Angel fan.
Good on the Angels. It’s about time that they got some luck.
About time they got some luck? They have had two all time greats for years. Many organizations haven’t had anyone near as talented as one of them and they ended up with two at the same time.
They didn’t have them playing at the same time very often
There’s having the two best talents, and then there’s having them healthy. The Angels have not had one full season of Trout and Ohtani healthy together. Add Rendon to that. Even Upton. Imagine if both Ruth and Gehrig kept getting hurt and never played a full healthy season together.
Bet.
You have to give credit where credit is due. Chalk one up for Minasian.
When they traded for all those players, at least they gave it a shot to go for a playoff spot, I think as a fan that’s all you can ask for.
The attempt was fine, the execution stunk.
Just like Moreno teasing a team sale.
At the end of the day players have to perform
But if a GM is the one adding these players, then isn’t it his fault.
Anyone, good for Minasian getting under the cap, now if he can only add players that actually help the team, that would be great.
Yep. Great job fixing the mistake.
Hey, finally some good news for Angels fans.
Should have just traded Ohtani at the deadline. They were like 7 games out of the final playoff spot and bought in.
You might want to check that. They went on a slide after the deadline, and mariners were in 4th place. They had a brutal schedule after the deadline should’ve seen it coming
You’re basically saying I’m not right but I’m still right……..ok lol
He was saying you’re not right because they weren’t 7 games out of a playoff spot
I’m not saying your right at the deadline they weren’t seven games back.
They were 4 games out and fresh off a sweep of the Yankees. It was a risky move that collapsed at an insane speed, but it wasn’t without merit. And I say that as someone who thinks they should have traded Ohtani at the *2022* deadline.
That in hindsight made more sense, prospects aren’t guaranteed and Arte needs ohtani if he wants to sell the team. They are definitely in on him, and it’s his decision now.
At that point in 2022, I had far more faith in a future prospect haul than in the Angels competing in 2023 to a degree that Ohtani would want to stay, and a 1.5yr rental can have a *ton* of value.
What did betts fetch for 1.5 years verdugo is the only one left for the Red Sox.
1) that was one year, not 1.5.
2) Ohtani >> Betts
3) that trade was bad the day it was made by a team backed into a corner by the player, and no one thought it was a good return *when it was made.* It wouldn’t be hard to demand a lot more.
4) I didn’t say it was a guarantee. I just said it was a more sure thing than the Angels being competitive in 2023 and getting him to stay.
How valuable is a guy that is picky about where he plays, and going to test the market regardless. He didn’t have a ntc, but would someone give up the farm knowing he’s leaving.
Two playoff runs of one of the greatest, most unique, most marketable players in the history of the game is extremely valuable. Now you’re just being silly
Always worth it to pay for top accountants to work the numbers.
We will never know, but what would the Angel have gotten if they traded Ohtani? He would have been a 2 month rental. There were some who thought that the Angels would have gotten 4 prime prospects. I seriously doubt that but would have been fascinating.
4 prime prospects for 2 months is outrageous. Might have gotten that much if they traded him during spring training.
my thoughts are teams likely offered one solid prospect, and one to two with a lot less luster for ohtani mid season and at the deadline. maybe they couldve gotten a star, but beating the odds and winning the world series would have been a way better reward than pivoting and taking less than proper value in a trade
Why risk it for something that might not pan out. Angels are very much still in on ohtani.
Rays offered 4 prime prospects. An absolute boatload; either Meade or the ss was top prize . Angels be angels thou
They would have received at least one prime and prob another with big upside… if i had to guess
First, we have to assume Ohtani would have passed a physical and the UCL tear hadn’t already started.
I’d say Ohtani probably nabs 2 top 100 + 2/3 organization top 20.
Enough to significantly re-stock the Angels’ farm system.
That’s good news for the Halos.
Hey finally some good news and maybe the front office is not quite as inept as it has been reported.
If they had traded him at the deadline, then they would probably have had a zero chance at resigning him in FA
That’s much worse than the 2% chance they now have to sign him.
Well maybe they can sign some good players now like Ohtani, and maybe trade for a guy like Mike Trout.
Arte Moreno and Dick Monfort are somewhere dining out at the start of the offseason. Simultaneously “I’m all in! This is our year!”
All these penalties for spending too much money on players and yet you still hear people say everyday that “MLB will never have a salary cap because the players won’t allow it”. Well, what are all these fines, loss of draft position and other major penalties if not at least a soft salary cap?
The luxury tax is not a big deterrent to spending. It’s not remotely close to a cap. It’s like when people add options to their car.
Premium Package? Check.
iPhone 15… Pro? Check.
Let me know when exceeding the luxury tax threshold prevents an MLB team from filling their 40 man roster.
@Rezimodos – Can’t help you out if you don’t already get it.
Tax for sure limits spending over the tax. If it didn’t, I could see NY teams double their current payroll.
Terminology means something. Words mean something. Often people say there is a cap. And technically there is not. Those are the ones who should re-word to soft-cap or tax.
As for some teams, it’s astonishing to see how much they drive their salary up with not much to show for it.
If I was an owner, I wouldn’t have much confidence in my team going over the tax, if the team was already close, had little to show for it, and mismanaged what they had.
Like many of us, I watched a lot of Angels games during the stretch run and my thinking as I watched was that these imported players were all swinging for the fences: for them this was the “salary drive” (a common expression among players at the end of the season. I don’t know how many times I saw a player come to bat with runners on 2nd and 3rd in a tight game and trying to hit a home run while popping up or grounding out. It came to me that these people are showcasing their skills for next year, not for the Angels. No team chemistry. It certainly showed.
Need to add three starters and three relievers. Need a third baseman. Need another outfielder. Tesocar Hernnadez is affordabe and not a long term deal. Justin Turner is a one-year deal and still productive, clutch and a leader who can platoon at first as well. Go hard for Yamamoto and outbid anyone– he’s a future Cy Young and only 25. Short of that, sign Snell and trade for either Glassnow, Cease, or Burnes. Sign a #3– Either Wade Miley or Seth Lugo works perfectly and neither breaks the bank, Silseth and Detmers are your #4 & #5. Canning is traded because his value has never been this high and he’s injury prone. Sandoval will be included in any trade package that nets Cease, Burnes or Glassnow. Daniels and Bachman are your depth starters. Sign three quality relievers. Do this and your team makes the playoffs with a chance to win it all. Add only one starter and two marginal relievers and some guy who is Renfroe part II and we will have 73 wins yet again.
Moreno is listed as the wealthiest man in the state of Arizona. He paid $175M for this franchise that is now worth at least $3B. He is making money hand over fist and yet he cries poor more than any owner in the game. Go out and sign or trade for the three starters we need. Pay for a real and productive outfielder and infielder and bullpen help– not bargain basement finds to appease fans. Go sign Teoscar Hernandez, Justin Turner and three relievers– do it. Throw money at Yamamoto, and or Snell, and don’t stop there– trade for Cease, or Burnes, or Glassnow– I don’t care what it costs. And at age-77 you shouldn’t either– unless you plan on taking it with you?
“Throw money at Yamamoto”…Recklessly and foolishly “throwing money” around is what got the Angels into this mess in the first place(Upton, Puhjols, Hamilton & Rendon). You’ve got to build, draft & develop and then add some free agent moneyed players on top, to compliment your core. Arte is totally about adding moneyed free agents, he just routinely forgets about the draft & develop part. If you don’t draft & develop well, adding high priced players is a complete waste of time.
Hey man, Yamamoto is the best pitcher available and he’s 25. He can lead the rotation for years. I didn’t say go give Bellinger whatever he wants. You have to pay for pitching. And yes, they should break the whole thing down and build properly, but they’ve said they’re not doing that. They’ve said they want to compete. So if they’re going to compete they need to buy and trade for what they need. I hope you don’t mind that I don’t want to pay through the nose to watch Walsh and Stefanic and Grichuk and whatever other marginal and triple-A talent they give us. Break it down and build around Neto, O’ Hoppe and Schanuel… love it. But they won’t do that.
The source could be incorrect, but what I read is the Rays employ the most folks in their analytics department of any team in baseball. The Angels employ the fewest.
Mike Trout to the Phillies for Nick Castellanos and Taijuan Walker. Who says no?
If there’s no money involved coming back to the Phillies, I believe they’d say “no”. I doubt anyone would take on all of Trout’s contract with his lack of productivity and playing time the last few years.
Uh, Angels. Castellanos, Crawford and a pitching prospect– I’d do it. They should trade everyone but the kids and build– but they won’t.
Booooooo!
Props to the Angels’ accounting team!
It’s good to see those accountants we drafted paying off. Is there like an accounting championship we could win?