Red Sox payroll: How do club’s finances look heading into offseason?

The Red Sox have invariably ranked among the league s heavyweights in terms of financial guidance but throughout the club s new five-year rebuild ownership seemed content to hold back The Red Sox spoke about sustainability while accepting mediocrity and every winter they largely sat on the sideline much to the frustration of the club s fans Last winter that approach began to change Related Articles MLB notes One writer s ranking of every ballpark he s visited so far Red Sox Summary Card Aroldis Chapman Garrett Whitlock earn top marks Analysis What Alex Bregman s opt-out decision means for Red Sox Three Red Sox players disclosed as Gold Glove finalists Assessment Red Sox B Alex Bregman to opt out test free agency In the Sox at last began acting with urgency The club signed Alex Bregman to a deal valued at million per season acquired Garrett Crochet in a blockbuster contract and gave him the second largest contract to a pitcher in franchise history and dished out lucrative in-season extensions to Roman Anthony Aroldis Chapman and Kristian Campbell Coming off the club s first postseason appearance since where will the club go from here Current payroll According to Red Sox Payroll on Twitter X an invaluable supply that has accurately tracked the Red Sox s payroll since the club finished with a payroll of approximately million That is the highest payroll in franchise history and was also about million over last season s first Competitive Balance Tax CBT threshold of million The Red Sox only exceeded the CBT once over the previous five seasons with the lone exception coming in Per Red Sox Payroll the club is at this moment committed to million in salary for With the first CBT threshold of million next year the Red Sox will start the offseason roughly million below the tax What are penalties for exceeding CBT This year the Red Sox will pay a tax on all overages which would equate to approximately million assuming that aforementioned million figure If the Sox exceed the tax for a second consecutive year in that tax would rise to There are also additional surcharges for exceeding the second third and fourth CBT thresholds as well as non-monetary penalties Tax-paying clubs who sign a athlete from another company who has rejected a qualifying offer forfeit million in international bonus pool money as well as two draft picks whereas non-payers only forfeit one draft pick and in specific cases in bonus pool funds Clubs also receive a worse draft pick as compensation for losing such players and if a squad has exceeded the third CBT threshold they ll have their highest draft pick moved back spots Who is coming off the books The Red Sox have four players set to hit free agency plus three more with options or opt-outs who are likely to join them The former group includes outfielder Rob Refsnyder left-handers Justin Wilson and Steven Matz and right-hander Dustin May The Red Sox reportedly paid those four a combined million in The latter group includes right-handers Lucas Giolito and Liam Hendriks who both have rarely exercised mutual options as well as Bregman who is expected to opt out of his deal Factoring in deferred money Bregman carried an average annual value of million which was the highest on the club Giolito was the club s third-highest-paid athlete at million and Hendriks had an AAV of million this past season One wild card is Trevor Story who can opt out of the final two years million of his contract this offseason If he does the Red Sox have the ability to void that opt-out by exercising a club option for which would keep him in Boston for the next three seasons How that situation plays out will have a crucial impact on the club s offseason as well Any non-tender candidates The Red Sox can free up additional money by declining to tender a contract to players who still have years of band control remaining Nathaniel Lowe who is projected to earn million in arbitration is the largest part likely non-tender candidate Tanner Houck is another possibility He is projected to earn million but will miss all of after undergoing Tommy John surgery Will any free agents return One of the top orders of business for the front office this winter will be keeping Bregman in Boston The veteran signed with the Red Sox on a short-term high-dollar deal and now he will be looking to land the lucrative long-term contract that eluded him last offseason The best point of comparison for Bregman is likely Matt Chapman In March the Gold Glove third baseman settled for a three-year million contract with the San Francisco Giants that was structured similarly to Bregman s with opt-outs after each season Chapman played well and earned himself a six-year million extension Bregman is the same age now as Chapman was a year ago and the two third basemen also share agent Scott Boras It stands to reason Bregman would seek at least as much as Chapman and if the Red Sox sign him at something approaching that price he would single-handedly bring the Red Sox to the edge of the first CBT threshold and likely exceed it Giolito is a candidate to receive a qualifying offer which this year is a one-year deal set at million If Giolito rejects the offer and signs with another band the Red Sox would receive a draft pick after the fourth round as compensation That would apparently be a best-case scenario for Boston given that the club has tons of starting pitching depth and will likely be in the field for a No starter behind Crochet Refsnyder Wilson or Matz could conceivably re-sign at similar price tags as they carried previously Hendriks and May are unlikely to return How does Devers factor in When the Red Sox traded Rafael Devers in June they were able to unload all of the salary he was due over the life of his contract That would have been approximately million annually for the next eight years The obvious question after the business How would the Sox use that money A sizable chunk of those funds have already been reinvested in Roman Anthony who signed an eight-year million extension following the business that will give him an AAV of million The rest will presumably be spent this offseason perhaps to help bring back Bregman sign a power bat or bring in a No starter Compared to past offseasons where the Red Sox had multiple requirements this year s wishlist is short but impactful Getting all three won t be cheap but as long as ownership is willing to tolerate a bigger tax bill there s no reason why the Red Sox shouldn t be able to go into next season as genuine World Series contenders