NEW YORK — The Boston Red Sox will make their $48 million in payments to the Los Angeles Dodgers as part of the David Price and Mookie Betts trade in 18 equal installments over the next three years.
The $48 million is equal to half of what Price is owed for the remainder of the $217 million, seven-year contract he agreed to with Boston ahead of the 2016 season. He is due $32 million in each of the next three seasons.
Boston’s Savings of $43 Million Drops the Team’s Projected Luxury Tax Payroll Below the $208 Million Threshold
Betts has a $27 million salary this year and is eligible for free agency.
Boston’s net savings of $43 million this year — Betts’ salary and half of Price’s — drops the team’s projected luxury tax payroll below the $208 million threshold. The Red Sox paid $11.95 million in tax following their World Series title in 2018 and $13.4 million in tax after missing the playoffs last year.
If the Red Sox exceed the threshold for the third straight season, they would pay at a 50% rate on the first $20 million over, a 62% rate on the amount over $228 million and a 95% rate on the amount above $248 million.
As part of the trade, Boston acquired outfielder Alex Verdugo, infielder Jeter Downs and catcher-infielder Connor Wong.