ARLINGTON, Texas — As we near Thanksgiving, and teams start to finalize plans for the Hot Stove season, one question on the minds of baseball observers is how much money their team will have to play with this offseason to put together a team that can compete in 2025. The Winter Meetings are set to happen in Dallas in just around a month, and while trades and signings can be made at any time, most of the big deals involving high-profile free agents are likely to happen during or after the meetings. For Texas, who spent a difficult and disappointing follow-up effort after their 2023 World Series championship with a middling 2024 season that did not end in a return trip to October, the question is how much money are they willing to spend to address their shortcomings? The Threshold The first Competitive Balance Tax or “Luxury Tax” surcharge threshold for 2025 is set at $241 million.
Any team whose payroll for the year exceeds that limit is subject to additional taxes. For teams who surpass the limit for the first time, they are subject to a 20% tax on the first $20 million over the threshold. If they exceed the limit for a second consecutive year, that tax jumps to 30% on the first $20 million.
The Rangers, who have enjoyed the fruits of some of the league’s best high-dollar free agents in recent years, are facing the prospect of surpassing the limit for the third year in a row. Rangers ownership would like to get the team below the $241 million luxury tax to reset the t.
