Payroll Flexibility Is A Lie (via Baseball Prospectus)

With news that a modified version of the Mookie Betts trade is official, the Boston Red Sox have consummated one of the most bewildering, common sense-defying trades in recent memory. Now that the dust is settling and fellow high-ranking baseball ops people are rushing to Boston General Manager Chaim Bloom’s defense, it has become clear what the true objective of the trade was. It’s not that Boston believes Alex Verdugo or Jeter Downs [are] the heirs apparent to Mookie’s crown as second-best player in baseball; the most valuable asset coming back to the Sox was actually “Financial Flexibility.”

By taking Betts and half of Price’s salary off the books, Boston stands to get under the luxury tax and put $40-$50 million back into John Henry’s pockets. It’s a coup for the already-massively-profitable corporation that owns the Sox, but past history suggests that the money they save will never find its way back to the roster. When teams have cut payroll, the “flexibility” those moves create goes right to the owners, not into the budget.

[W]hen teams trim their budgets, they don’t respond by spending more later. Sometimes, it’s the opposite: cost-cutting in one year is followed by more reduction later. … Read More

(via Baseball Prospectus)

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