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
- Cup of Coffee: Kopech drives Greenville past Charleston
- Cup of Coffee: Gunkel grabs first Double-A win, Craig reaches five times
- Cup of Coffee: Moncada breaks out, PawSox lose heartbreaker
- Cup of Coffee: Johnson goes six strong, Moncada picks up first hit
- Cup of Coffee: Moncada era begins; phenom scores twice in slugfest
- Weekly Notes: Moncada set to debut, Brian Johnson keeps producing
- Cup of Coffee: Kopech and Haley solid, Tejeda swinging a hot bat
- Yoan Moncada to debut with Greenville on Monday
- Cup of Coffee: Witte nearly hits for the cycle, Devers strong for Greenville
- Cup of Coffee: Roberson hits for the cycle, Owens has impressive start