The Los Angeles Angels’ season has turned into an embarrassment, with the team trying to clear salary to get below the luxury tax a month after going all-in to try to make the playoffs. As it turns out, they didn't even do that correctly.
Jeff Fletcher of the Orange County Register reported Friday that the Angels failed to get below the luxury tax threshold despite placing five players on waivers in an effort to do so. No teams put in a claim on outfielder Randal Grichuk and his $1.7 million salary, which made the difference.
The financial implications, at least in the short term, are not a huge deal for the Angels, as it accounts for only a few thousand dollars in taxes at this point. It becomes a bigger deal if they go over the tax threshold again in 2024, as they would then be taxed 30 percent of the amount they go over the threshold.
An arguably bigger deal is that the Angels’ draft compensation will be significantly impacted if Shohei Ohtani leaves as a free agent. If the Angels had gone under the luxury tax, they would have received a second-round draft pick as compensation if Ohtani departs for another team. By remaining over the threshold, that becomes a fourth-round pick instead.
The tax situation is calculated in December, so the Angels still have time to get beneath the $233 million threshold if they can make another set of moves before then.
The Angels dumped five players in a bid to get under the threshold, but only four were claimed. It essentially leaves them where they were before, just with a slightly lower luxury tax bill. One has to figure that was not the point, making an embarrassing turn of events look even worse.
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