A note of clarification on John Lackey’s salary and the luxury tax threshold
|11.13.13 at 12:45 pm ET|
In the aftermath of this look at the Red Sox’ current payroll commitments for 2014, there has been widespread curiosity on one front: Why is John Lackey listed as a $16.5 million salary for luxury tax purposes?
The right-hander is entering the final season of his five-year, $82.5 million contract. But because he missed all of 2012 while recovering from Tommy John surgery, a vesting team option at the major league minimum ($500,000 plus a cost of living adjustment from 2014 to 2015) for 2014 was triggered. So, with that option in place, does it alter the way that Lackey’s 2014 average annual value is calculated for luxury tax purposes?
Simple answer: No.
Even if the Sox exercised Lackey’s 2015 option today, it wouldn’t impact how his AAV is determined in any year of the contract prior to the option. He’d still represent a $16.5 million player for the purposes of 2014 payroll, and he’d still represent approximately a $500,000 player for the purposes of 2015 payroll.
The implications are twofold: First, Lackey represents, at least as of now, the most expensive player on the Sox’ roster in the coming year, and secondly, he represents a potentially game-changing member of the roster for 2015 if he remains healthy and effective while pitching at the major league minimum. If, for instance, the Sox wanted to sign Jon Lester to a long-term deal that would take effect starting in 2015 (something that the team is expected to explore this spring), the payroll flexibility afforded by Lackey could play a significant role in giving the Sox the flexibility to do so while staying well within the luxury tax threshold.
Latest from Bleacher Report
- Unexpected Trades Red Sox Could Pull Off This Offseason
- Dream Free-Agent Pickups for Red Sox
- Red Sox Free Agency News and Trade Rumors
- Should Red Sox Trade Cespedes This Offseason?
- Red Sox's Most Tradeable Assets for Offseason
- Uehara Inks 2-Year Extension with Sox
- Possible Trade Partners, Packages for Cespedes
- Trade Analysis: Scouting Anthony Ranaudo
- Red Sox deal Anthony Ranaudo to Rangers for Robbie Ross Jr.
- Fall/Winter League Roundup: Perth heads to the playoffs
- Rookie Dev Program notes: Ramos healthy, Swihart looks back
- Mookie Betts is prepared for whatever 2015 may bring
- Brian Johnson prepared to follow up stellar 2014 campaign
- Fall/Winter League Roundup: Weeks helps Mayaguez advance to finals
- Rookie Development Program easing transition for young players
- Offseason Notes: Veterans Bianchi, Boggs highlight minor league signings
- Red Sox acquire Danny Rosenbaum from Nationals for Dan Butler