Phillies' Dombrowski Instructed to Not Exceed Luxury Tax Threshold

The luxury tax threshold was raised by $20 million after the 2021-22 MLB Lockout. What are the Phillies planning to do with the extra space?

Daniel Clark-USA TODAY Sports

As part of the new Collective Bargaining Agreement between Major League Baseball and the MLB Player's Association, the luxury tax threshold rose by $20 million this season—from $210 million to $230 million.

This is good news for the Philadelphia Phillies as Owner John Middleton has always been hesitant to pay the luxury tax. In fact, the club has never paid it, despite Middleton's "commitment" to building around Bryce Harper following his signing in Feb. 2019, and spending "stupid money."

2022 will be no different, Phillies President of Baseball Operations Dave Dombrowski was instructed to "spend as he saw fit, but to not exceed the $230 million budget," according to Matt Gelb of The Athletic.

"I’ve never found that that’s very helpful to disclose to other people because I don’t want to be able to tip my hands on what we are or are not going to do," Dombrowski said. "But I would say that I do not feel restricted at all."

Although the club has $20 million more to spend, judging by reports so far, such as Odúbel Herrera possibly platooning in center field with Matt Vierling, or Didi Gregorius and Bryson Stott competing for the shortstop job, the overall fan morale is low. Philadelphia seems reluctant to include any of their top prospects in a trade package for a center fielder as well.

Even the signing of reliever Jeurys Familia for one-year, $6 million on Saturday wasn't entirely inspiring. Dombrowski and the Phillies need to make a significant move for a big-name soon to boost optimism heading into 2022.

The lockout ended March 10, so naturally it'll take clubs some time to return to their old routines. There's been no contact permitted between players and staff since Dec. 1. Taking this fact into account is reasonable, but when other teams have had few qualms signing and acquiring higher-tier players, it's easy to get frustrated sensing the lack of urgency.

At the same time, MLB free agency has only been open for 72 hours, there's still plenty of free agent options left, and there's 26 days remaining before Phillies' Opening Day on April 8. There could still be a trick or two up Dombrowski's sleeve in the coming weeks.

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