Braves in line for major financial “reset” in 2025 that will reset their luxury tax obligations
Atlanta is currently in a position to reset its luxury tax obligations, given the expiration of several large contracts. In the current offseason, the Braves have showcased their financial strength not by signing top-tier free agents, but by acquiring long-term, controllable talent through “salary dump” trades. Recent additions to the roster include Aaron Bummer, Jarred Kelenic, David Fletcher, and Ray Kerr, acquired by taking on contracts deemed unfavorable.
While these moves have secured significant contractual control over the traded players, the downside is the potential 2024 cost associated with the acquired “bad contracts.” Despite Atlanta’s ability to distribute some salary obligations to other teams, the overall impact on the payroll is substantial, with projections placing the 2024 cash payroll as one of the highest in MLB at $208M and the tax payroll at $242M, making it the second consecutive year in the luxury tax.
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Looking ahead to 2025, there is an opportunity for Atlanta to reset its finances. Several players with expiring contracts could result in savings of over $72M, potentially reducing the cash payroll to around $190M and the competitive balance tax (CBT) payroll to just under $172M. However, this reset might not necessarily lead to a drop below the luxury tax threshold, as the team’s focus is on the cash payroll rather than the tax payroll.
| Player | 2024 Salary | 2025 status |
|---|---|---|
| SP Max Fried | $14.4M (arb projection) | UFA |
| SP Charlie Morton | $20M | UFA (probable retirement) |
| RP AJ Minter | $6.5M ((arb projection) | UFA |
| DH Marcell Ozuna | $16M | Club option ($16M) |
| RP Aaron Bummer | $5.5M | Club option ($7.25M) |
| C Travis d’Arnaud | $8M | Club option ($8M) |
| RP Tyler Matzek | $1.9M | Club option ($5.5M) |
“I concentrate on the cash amount, so what the actual cash out the door is.” What the tax would look like, so the CBT figure – aside from being over, we don’t pay attention to it. We do pay attention to the dollar worth of taxes because that must be paid, as well as salaries because they must be paid.”
The state of the rotation in 2025, with Max Fried reaching free agency and Charlie Morton possibly retiring, adds complexity to the decision. While there is a chance to re-sign Fried, historical precedents with other players suggest that the front office, led by Alex Anthopoulos, may remain firm on contract terms. The significant escalation in luxury tax penalties for consecutive years exceeding the threshold is another factor that may influence Atlanta’s decision to potentially drop below the tax for a single season.
Complicating matters further is the uncertainty surrounding the Bally Sports/RSN bankruptcy, with changes expected in MLB broadcasts for the 2025 season. The impact of this uncertainty on revenue remains unclear as of now.