Phillies: The Luxury Tax could cost them a World Series

Are the Phillies really that strapped by the luxury tax?

After signing Zach Wheeler and Didi Gregarious to nearly $40 million on the 2020 Phillies payroll, the Phils find themselves quite near the luxury tax threshold, a threshold that can be breached with an ensuing tax penalty issued by the MLB.

The Middleton’s have the pockets to spend and incur the tax, and in doing so may be able to add more talent to an already solid roster. And the question is, if they don’t, will the Phillies be good enough to get to the fall classic?

Phillies owner John Middleton once said the Phils were going to spend stupid amounts of money in the offseason to acquire a championship roster. Yes, they got Bryce Harper, J.T. Realmuto, Zach Wheeler, etc. But when you look across the MLB landscape, the teams that are building dynasties seem not to care about the luxury tax. The Yankees, Red Sox, and Astros are $49 million, $22 million, and $20 million over the competitive balance tax number, which sits at $208 million for 2020.

Philadelphia Phillies

That $208 million mark seems like a lot of money for a franchise to exceed, but the Nationals were not far behind the Astros in terms of spending, standing at seventh in the league for payroll heading into 2020. The Phillies have a lot of money tied into long term contracts, but they will ‘only’ receive a twenty percent tax on luxury payroll because it is their first time doing so.

A question that arises is, what can the Phillies do to make the most out of their luxury spending? Well, restocking a bullpen that collapsed on numerous occasions last year should be a focal point for management.

The bullpen, whoever they may be after spring training battles, should be solid all-around. Hopefully, Seranthony Dominguez and Hector Neris can anchor a shaky bullpen, but fans shouldn’t be too confident about their pitching in the late innings.

The starting pitching may still need some turnover.

Aaron Nola and Zach Wheeler will be fun to watch in 2020, but who knows what Jake Arrieta will bring. A 30-million-dollar-arm, Arrieta has yet to be the pitcher he was while with the Cubs. Zach Elfin is a solid 4-5 man in the rotation, but the Phils have yet to add a talented lefty to their starting five.

Philadelphia could lose spots in the draft order for going over the tax and signing players. But between 2000-2015, how many Phillies first-rounders have gone on to become successful MLB contributors? Arguably only three unless you count J.P Crawford. So, if that’s any indication, worry about the draft later, and win now.

This is where going over the competitive balance tax threshold may be worth it. Sign or trade for more established bullpen arms, bring in a lefty that has the talent to be in the middle of the rotation, do the things that are required to win a world series in 2020.