MLB Luxury Tax

[Gophergrandpa]

The NY Mets have gone on an epic spending spree. At this point, after signing Correa to a huge contract, the Mets' annual payroll stands at approximately $334 Million. The luxury tax (for overspending) the Mets will have to pay is (I have seen rumored) is about $111 Million, making total player personnel costs for next year at around $445 Million. The $111 Million luxury tax is more than some MLB teams' total player personnel costs for the year. Maybe this wild spending it will work for the Mets, maybe it won't.

I see parallels here with the NIL issue in football. Only a few players on a few teams are raking in NIL millions. The teams (vast majority) that don't have wealthy boosters willing to essentially throw away money will get by, forming their rosters, and often fielding very competitive teams. The college teams whose top echelons are assembled solely by competitive bidding, without regard to the other factors that bind team members as brothers in a cause, will win some years but might also flame out, perhaps spectacularly, given their nominal talent, just as often. Texas A$M comes to mind. Colorado will be interesting to watch, if Deion gets the NIL machine moving there. I think PJ is taking the high road on NIL because, frankly, Minnesota has great fans but not crazy, wealthy boosters. I'm fine with the high road.

I hate the disruption caused by NIL, but I think college football will survive it just fine.

 

[PMWinSTP]

The NY Mets have gone on an epic spending spree. At this point, after signing Correa to a huge contract, the Mets' annual payroll stands at approximately $334 Million. The luxury tax (for overspending) the Mets will have to pay is (I have seen rumored) is about $111 Million, making total player personnel costs for next year at around $445 Million. The $111 Million luxury tax is more than some MLB teams' total player personnel costs for the year. Maybe this wild spending it will work for the Mets, maybe it won't.

I see parallels here with the NIL issue in football. Only a few players on a few teams are raking in NIL millions. The teams (vast majority) that don't have wealthy boosters willing to essentially throw away money will get by, forming their rosters, and often fielding very competitive teams. The college teams whose top echelons are assembled solely by competitive bidding, without regard to the other factors that bind team members as brothers in a cause, will win some years but might also flame out, perhaps spectacularly, given their nominal talent, just as often. Texas A$M comes to mind. Colorado will be interesting to watch, if Deion gets the NIL machine moving there. I think PJ is taking the high road on NIL because, frankly, Minnesota has great fans but not crazy, wealthy boosters. I'm fine with the high road.

I hate the disruption caused by NIL, but I think college football will survive it just fine.

Gophers do have wealthy alum and boosters, they just have not opened up their pocket books as much for the sports teams. I do agree that things will settle out in the future as there are more high profile busts with NIL.

 

[1983]

Beat me to it PMWinSTP, we do plenty of boosters who could pay up but fundamentally the NIL is a bad play and our folks are conservative. The NIL busts will be huge. I would like to see the NIL contract for a million dollar athlete.