The Los Angeles Angels recently put six rental players on waivers in order to dump their salaries: Lucas Giolito, Randal Grichuk, Dominic Leone, Reynaldo López, Matt Moore, and Hunter Renfroe. Grichuk was the only one who was not claimed. This move was an attempt by the Angels to get under the $233 million competitive balance tax (CBT) threshold, but they ultimately failed to do so. Although shedding those five players cleared approximately $5.9 million in salary for the rest of the season, it fell short of their goal.
Angels GM Perry Minasian mentioned that failing to get under the CBT threshold will not have a significant impact on the team’s future. However, he did not disclose how close they came to achieving their objective. The Orange Country Register reports that they would have shed about $1.7 million if Grichuk had been claimed on waivers. According to Cot’s Baseball Contracts, the team’s CBT payroll is estimated at $236.1 million, while FanGraphs estimates it at $231.9 million.
The waiver activity was primarily financially motivated, as team owner Arte Moreno did not want to pay the tax after his team fell out of the postseason race. This move was unusual given that the Angels’ payroll had exceeded the CBT threshold only once during Moreno’s ownership. In terms of real money, the Angels will have to pay a 20% tax on every dollar over the $233 million CBT threshold, which amounts to approximately $1.7 million. Their overage next season will be taxed at 30% as a repeat offender. There are valid baseball reasons to avoid going over the CBT threshold, such as receiving worse draft pick compensation for losing a qualified free agent and facing tougher penalties for signing a qualified free agent.
This series of events reflects the larger failure of the Angels in recent years. They have not been able to reach the postseason with Shohei Ohtani and have struggled to make an impact at the trade deadline. Now, they have failed to get under the CBT threshold, resulting in a worse long-term outlook for the team. The recent waiver activity by the Angels, motivated by financial considerations, has soured many fans and observers.
