2019 MLB payrolls drop due to signing bonuses

By: Ronald Blum, The Associated Press Posted: 4:00 PM CDT Tuesday, Apr. 23, 2019 Last Modified: 8:07 PM CDT Tuesday, Apr. 23, 2019

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NEW YORK - Big deals for Bryce Harper, Mike Trout and others that included large signing bonuses masked an otherwise flat market for the second straight off-season that caused Major League Baseball's opening-day payrolls to drop by $43 million for 2019.

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This article was published 23/04/2019 (2670 days ago), so information in it may no longer be current.

NEW YORK – Big deals for Bryce Harper, Mike Trout and others that included large signing bonuses masked an otherwise flat market for the second straight off-season that caused Major League Baseball’s opening-day payrolls to drop by $43 million for 2019.

Payrolls, however, rose by $131 million when using the averages of multiyear contracts. Following a winter in which many journeymen took cuts, a string of stars signed huge long-term agreements during March and April.

Since the end of last season, teams agreed to a record $4.195 billion in guarantees beyond 2019, breaking the previous mark for out-year commitments of $3.414 billion set following the 2013 season, according to figures compiled by the commissioner’s office and obtained by The Associated Press.

Los Angeles Angels' Mike Trout runs the bases after a double against the Seattle Mariners during the third inning of a baseball game in Anaheim, Calif., Sunday, April 21, 2019. (AP Photo/Chris Carlson)

Just three teams are on track to pay the luxury tax. World Series champion Boston projects to owe $11.8 million, the Chicago Cubs $5.3 million and the New York Yankees just under $4 million. Figures will fluctuate during the season because of roster moves.

Payrolls totalled $4.072 billion on opening day, down 1.1 per cent from $4.115 billion at the start of last season and $4.135 billion on opening day 2017, using the calculation of salaries plus prorated shares of signing bonuses.

Using the average annual values of contracts plus a little over $14 million per team in benefits this year — the measurement used for the luxury tax — payrolls went up 3% from $4.415 billion to $4.545 billion, but remained below the $4.549 billion at the start of 2017.

Angered over the slow pace of free-agent signings, players pushed for an unprecedented early start to labour negotiations, and clubs agreed to bargain over economic terms. The five-year collective bargaining agreement runs until December 2021.

Signing bonuses can impact payroll calculations. Trout originally was set to earn a $33.25 million salary this year, but his record $426.5 million, 12-year contract dropped his salary to $16 million and added a $20 million signing bonus due May 31. That lowered his figure for the 2019 payroll calculation from $34.08 million to $18.5 million.

Others who agreed to signing bonuses of $10 million or more included Alex Bregman, Jacob deGrom, Paul Goldschmidt, Clayton Kershaw, Manny Machado and A.J. Pollock. About $192 million in signing bonuses were agreed to during the off-season, and that money is prorated over the length of each contract, causing only a portion to appear on 2019 payrolls. Among all outstanding signing bonuses, the prorated share included this year was $121 million.

Payrolls will increase during the year. Top free-agent pitchers Craig Kimbrel and Dallas Keuchel remain unsigned, and players will earn performance and award bonuses. The 2018 payroll figure finished at $4.227 billion for salaries and prorated shares of signing bonuses, down from $4.245 billion in 2017. The figure for average annual values ended 2018 at $4.548 billion, down from $4.663 billion.

The players’ association calculated its opening day average salary at $4,512,357, a $1,785 increase over 2018 but below the $4,525,704 average at the start of 2017. This year’s figure is based on 880 players who were on opening-day rosters, injured lists and the restricted list. The union includes option buyouts in its average.

San Diego Padres' Manny Machado scores on a two-run double by Wil Myers during the third inning of a baseball game against the Cincinnati Reds in San Diego, Sunday, April 21, 2019. (AP Photo/Alex Gallardo)

Boston started with a payroll of $239.71 million for the luxury tax, the Cubs at $229.94 million and the Yankees at $225.92 million, followed by a big gap to the Los Angeles Dodgers at $196.3 million. The tax starts at $206 million this year, with a surtax at $226 million and a second surtax involving an amateur draft penalty starting at $246 million.

Under salaries and prorated shares of signing bonuses for 40-man rosters, Boston leads at $222 million, followed by the Chicago Cubs ($211 million), the Yankees ($209 million), the Dodgers ($195 million), Washington ($192 million), San Francisco ($177 million), St. Louis ($168 million) and the Los Angeles Angels ($163 million).

At the bottom were Tampa Bay ($62 million), Miami ($72 million), Pittsburgh ($78 million) and Baltimore ($80 million).

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