CBT Analysis: Can Red Sox Afford to Sign Bay or Holliday?

Posted: 28th December 2009 by Jeffrey Brown in MLB
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Over the last several days, there has been a lot of speculation that the Red Sox's recent shopping spree may not be done. In the aftermath of the New York Yankees' acquisition of RHP Javier Vazquez, some pundits have speculated the Sox may feel the need to make one more big splash in free agency. The thinking is that the Sox will perceive the New York rotation to be close enough to the Red Sox (in quality) that the stark differences in the teamÆs respective lineups will be impossible to ignore. With that said, we also know that the ballclub appears determined to keep the team salary below the threshold for the Competitive Balance Tax, also known as the CBT and/or ôthe luxury tax.ö The CBT was designed to be a deterrent to spending. The Collective Bargaining Agreement (CBA) between the l ...

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