The luxury tax has been a source of fan frustration for years. It was this magical barrier the Phillies would approach, but never cross. This lead to the Phillies sending out worst trade packages to get money included in trades, or having to ignore certain players altogether. The Phillies went over the tax line to sign Nick Castellanos, and have not done much else beyond that, yet. The surface level benefit heading into next week’s trade deadline is not having to worry about taking on salary and it taking them over the line. There are some monetary increases, but the Phillies would need to add over $30 million in salary to hit the next penalty to talent acquisition.
However, it is not just the big moves that cost money, and when you dodge around the tax line by under a million like the Phillies have in the past, adding a player to the IL and then calling up a new player will cost that new player’s portion of the major league minimum ($700,000). What comes next was inspired by a conversation with Paul Boye on Twitter.
Money is not actually a finite resource in baseball. The most finite of resources is roster spots. You get 26 active, and 40 major league contracts. The only way to get players off the 40 is either put them on the 60 day IL if they are hurt or to waive them (or releasing them if they are on a minor league IL as you cannot DFA/waive an injured player). The catch is putting them on the 60 day IL is that they are on the major league IL and so that player accrues major league service time and major league salary, which counts against the luxury tax.
So far this season, the Phillies have expanded their 40 man roster, while keeping players in their system 5 times in this way with Rafael Marchan and Kent Emanuel starting the year on the 60 day IL, and injured prospect pitchers Damon Jones, James McArthur, and Hans Crouse all spending time there. By the end of the season, it will be over $2 million the Phillies will have spent towards the tax to open up more 40 man roster spots.
40 man roster spots are not the only way the Phillies have used taking on a small amount of payroll to give an advantage. Nick Maton was injured in the majors on June 5, he had to go on the major league 10 day IL. He began his rehab on July 7 in Clearwater, before moving to AAA Lehigh Valley on July 12. Given their current MLB roster, Nick Maton probably would be in AAA normally, so the Phillies could easily end his assignment and option him to AAA. He would stop getting service time and MLB salary, but he would trigger a roster limitation. The minute the Phillies option him to AAA they start a 15 day clock before he can be called up, which would take it past the deadline if they need to make a move. As the deadline approaches, it is probably that Maton will need to be optioned without another move, but by keeping on paying him a major league salary the Phillies they keep their options open.
These aren’t big moves on their own, but they are big moves in aggregate where the Phillies have been willing to spend money to give themselves more time and roster flexibility.