Re-signing Alex Bregman could end up being a financial tightrope walk for the Astros, and it’s going to be expensive. The team is already $3 million over the first luxury tax threshold, with a total payroll of $244 million. Add Bregman’s reported $156 million, 6-year deal into the mix, and boom—there’s an additional $26 million on the books.
That bumps their payroll up to a staggering $270 million, crossing the second luxury tax threshold of $261 million. And guess what? That’s where things start getting really tricky; the Astros are looking at a serious luxury tax penalty. As a second consecutive offender, they would get hit with a 45% tax on everything over the $261 million threshold.
Alex Bregman could cost the Astros more than they would have thought
ADVERTISEMENT
Article continues below this ad
The club is already over the first threshold ($241 million), so the Astros would face a 65% tax on that $29 million difference. That means, just for signing Bregman, the Astros would be slapped with a $18.85 million tax bill. That’s nearly $19 million in tax on top of his $26 million salary! So, the total cost of re-signing Bregman for 2024? $44.85 million—that’s not an insignificant amount, and the front office may wonder if Alex Bregman is truly worth it.
What would re-signing Alex Bregman mean for the Astros payroll and luxury tax?
The Astros are currently $3m over the first luxury tax threshold penalty of $241m for a total of $244M. If they were to re-sign Alex Bregman at the reported $156m/6yrs at $26M AAV, that would bring… pic.twitter.com/ppYeMSLyHK
— Astros Josh (@AstrosJosh) January 24, 2025
The current payroll situation is not looking good for Houston, to be honest. The squad is drowning in luxury tax penalties. Jim Crane will have to pay hefty tax costs for the privilege if he approves Bregman’s contract. No wonder insiders like AstrosJosh are skeptical that the Astros will commit to Bregman at that cost, which is understandable.
So then, what exactly is the team doing? Well, in an attempt to reduce their tax burden, they are already making an effort to reduce salaries. Ryan Pressly’s name is frequently mentioned in trade speculations.
The Astros are making some big moves this offseason, starting with their 36-year-old pitcher
ADVERTISEMENT
Article continues below this ad
If Ryan Pressly, a seasoned closer, agrees to waive his no-trade clause, he may be the next player traded. Several sources claim that Houston has requested that Pressly authorize a trade with the Cubs, but as of Friday, the 36-year-old has not granted the request. The #55’s 10-and-5 rights, which grant him complete control over any trade, offer him the ability to make or break this deal.
Why is Pressly traded so quickly? In order to improve their offense and re-sign Alex Bregman, a fan favorite, the Astros are attempting to free up some cash. Pressly’s $14 million deal is about to expire, so cutting him would free up a significant sum of money. The appeal of bringing Bregman back to Houston appears to be too much to resist, even if the team has already strengthened its infield with Christian Walker in free agency and Isaac Paredes via trade.
However, it’s a challenging position for Pressly. Houston may have added Josh Hader to potentially replace Pressly as the Astros’ closer, but letting him go still feels like a significant move for the team. Pressly has been the pillar of the Astros’ bullpen. Throughout their current championship window and in helping them win the 2022 World Series, the man has been dependable for them.
ADVERTISEMENT
Article continues below this ad
Now, the question is: Does Ryan Pressly want to stay with Houston, or will he be open to pitching in the Windy City? What do you think? Share with us below.
Have something to say?
Let the world know your perspective.
Debate
Is Alex Bregman worth the $44.85 million hit, or should the Astros look elsewhere?
What’s your perspective on:
Is Alex Bregman worth the $44.85 million hit, or should the Astros look elsewhere?
Have an interesting take?