Stark: Doing the math on the competitive balance tax, and the Red Sox motivation to trade Mookie… – The Athletic

Posted: February 10, 2020 at 9:48 pm


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I never wanted to be Alan Greenspan when I grew up. I never wanted to work for H & R Block. I never even wanted to fill out my own tax return myself.

I enjoy writing more than write-offs. And Im pretty sure most of you relate to that, unless youre an actuary or something.

But theres one tax in the world I do know a few things about. Believe it or not, I know enough about baseballs Competitive Balance Tax, more often called the luxury tax, to understand exactly why the Red Sox were convinced it was worth their while to trade Mookie Betts and David Price. I can sum it up this way for you:

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Ive done that math. I even ran it past people in baseball who work with this tax every day. And I can tell you that trading those two guys, and dipping under the tax threshold, could easily be worth hundreds of millions in savings off future tax bills. But

I can also tell you that, in the midst of...

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Stark: Doing the math on the competitive balance tax, and the Red Sox motivation to trade Mookie... - The Athletic

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February 10th, 2020 at 9:48 pm

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