How Will the Red Sox Reduce Payroll, While Remaining Competitive?

JD Martinez will be back with the Red Sox next season, which is both good news and bad news for the payroll-heavy club.

With JD Martinez choosing not to opt out of his 2020 contract, the Red Sox payroll now sits at ~$227.23 million, at a time when ownership has publicly stated its intention to get under the $208 million luxury tax threshold.

The organization will now have to seek alternative means to reduce payroll and, subsequently, its tax penalty.

Martinez's return next year will be great for the offense and will make Alex Cora's life easier, but it will also create great challenges for new vice president of baseball operations, Chaim Bloom.

Boston has a number of highly paid (or overpaid) players on its roster, which will make filling holes and building the 2020 team more difficult.

Red Sox Highest 2020 Salaries

David Price - $32M
Chris Sale - $30M
Mookie Betts - arb estimate ~$27M
JD Martinez - $23.75M
Xander Bogaerts - $20M
Nathan Eovaldi - $17M
Dustin Pedroia - $13M (may not play in 2020)
Jackie Bradley - arb estimate ~$11M

It's overly simplistic to say, "Just trade Price!" Saying that is easy; executing it is much more difficult. Everyone in baseball is aware of Price's age (34) injury history and health status. The Sox would likely pay another club about $10 million to have Price pitch for them. The wiser choice would be to keep him and hope for the best (30 starts, 200 innings, 3.50-4.00 ERA).

The Red Sox have $79 million committed to Price, Sale and Eovaldi for next season, which is extraordinary for just three pitchers. Though Boston may have (thankfully) shed Rick Porcello’s $21 million salary, they still need to replace him and there is no one in the minors ready to step up. That will necessitate finding an affordable free agent or making a trade, which comes with its own costs.

One distinct possibility for lowering payroll would be granting Jackie Bradley his arbitration award and then trading him. Bradley was worth just two wins above replacement last season, which is certainly a number that another outfielder could provide for a lot less money. Surely, the Red Sox love JBJ's glove and arm, but he has continually been an offensive under-performer since arriving in the majors in 2013. Bradley made $8.55 million last season and it's hard to argue that he's worth any sum above that. It's worth considering that the average MLB salary last season was $4.36 million.

It’s also worth noting that the Sox don’t necessarily need to find another center fielder to replace JBJ, since both Betts and Andrew Benintendi can fill that void. Adding a corner outfielder may be easier and more likely. In 2018 (the most recent year I could find data), right fielders earned an average salary of $5.2 million, with a median income of $3 million.

I don’t believe the Red Sox will trade Betts and I wouldn't advocate it. He is a fan favorite and a perennial MVP candidate. I think the team values him too much to trade him away. They are a big-market club and the owner has deep pockets. The Red Sox don't necessarily need to be the top bidder next year; they just have to be "in the ballpark.” Betts' loyalties to the organization, to Boston and the fans may be the ultimate determinant.

Whatever the team does to lower its current $227 million payroll to its stated objective of $208 million will be fascinating to witness. Such moves will require great creativity and, perhaps, some risks.

Chaim Bloom is now facing that challenge, yet he seems like a man who is up to the task. Surely, he knows how to do more with less. The Rays' payroll last season was $89.9 million, while the Red Sox' tab was $241.7 million.

Meanwhile, the Rays won 96 games and made the playoffs, while the Sox won just 84. Clearly, spending big money doesn't guarantee wins, and Bloom proved this.