"Some fans will surely balk at the idea that one of the sport's most valuable brands and franchises is operating at a loss, especially following an offseason where the team made an offer north of $700MM to Juan Soto. It's easy to see why Soto specifically would be a player the team was willing to make an exception for based on his youth and incredible talent,"
"According to McAdam, the Red Sox are willing to pass the luxury tax threshold as they did in 2025. With that being said, however, McAdam reports that doing so would leave the club "absorbing a moderate financial loss," and that Boston is hesitant to spend beyond that level and incur bigger deficits."
"The Red Sox spent just under $245MM in 2025 for luxury tax purposes, according to RosterResource. Their projected luxury tax payroll for 2026 stands at $223MM. That means they have just $22MM left in payroll flexibility if they plan to spend at the same level they did last year."
Red Sox leadership intends to upgrade an offense depleted by Alex Bregman opting out and Rafael Devers being traded. The club has considered signing multiple star bats, including reuniting with Bregman and adding players like Pete Alonso or Kyle Schwarber. MassLive reports that budget constraints complicate those plans, with the team willing to exceed the luxury tax but wary of larger deficits. McAdam says surpassing the threshold again would leave the club absorbing a moderate financial loss and that Boston is hesitant to spend beyond that level. Reported payrolls show about $245MM in 2025 and a projected $223MM in 2026, leaving roughly $22MM in flexibility.
Read at MLB Trade Rumors
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