As they look to ramp up payroll ahead of their impending move to Las Vegas, the Athletics inked right-hander Luis Severino to the largest deal in franchise history last week as they look to capture the attention of a new city during their temporary move to West Sacramento. With that being said, a report from Evan Drellich and Ken Rosenthal of The Athletic on Monday emphasized that getting fans into seats in 2025 isn’t the only motivation behind the club’s decision to increase spending. The duo reports that without a substantial increase to the club’s payroll this winter, the A’s run the risk of inviting a grievance from the MLB Players Association.
That risk of a grievance is due to the fact that A’s will collect 100% of their revenue-sharing dollars in 2025 for the first time under the current collective bargaining agreement. While the team received just 25% of their allotment in 2022, that figured increased to 50% in 2023 and 75% in 2024 before finally reaching 100% in 2025. The issue for the A’s stems from the fact that the CBA requires revenue sharing recipients to spend more than 150% of their revenue sharing money on MLB payroll.
Drellich and Rosenthal go on to report that A’s could receive $70MM or more in revenue sharing after drawing the worst attendance figures in baseball last year, which would mean the club needs to reach a player payroll of $105MM or more for luxury tax purposes in 2025 in order to avoid risking a grievance. RosterResource currently projects the club for a luxury tax payroll of just under $78.5MM for 2025, meaning they would need to add roughly $26.5MM in player payroll to avoid falling below that 150% figure. It’s worth noting that these numbers are inexact, as well, and if the A’s receive a larger revenue sharing check than currently expected they may wind up needing to float a luxury tax payroll of more than $105MM in order to avoid a grievance.
For a club that has struggled to lure in free agents this winter due to the fact that they’ll spend the next three seasons using a Triple-A stadium as their home ballpark, reaching that level of spending could be complicated. A separate report from Rosenthal suggests that the A’s have interest in adding another free agent starting pitcher alongside Severino, though he adds that such a signing would likely be a veteran pitcher from a lower tier of free agency. Rosenthal specifically name-checks Kyle Gibson, Lance Lynn, and Andrew Heaney as potential options the A’s could consider if any of them were willing to pitch in West Sacramento next season.
Of the three, Heaney was predicted to land the largest contract on MLBTR’s annual Top 50 MLB Free Agents list with a two-year, $24MM pact. That $12MM AAV would bump the club’s luxury tax payroll up to $90.5MM, putting them just $15MM away from reaching their estimated $105MM target. The tough sell of pitching in West Sacramento and the projection-beating deals signed by other pitchers this winter could leave the A’s in a position where they’d need to offer more than that $12MM annual figure in order to land a veteran hurler, but they’d surely still need to find other ways to add salary in order to reach $105MM even if they signed a veteran starter to a deal that significantly outpaced projections.
Free agency isn’t the only avenue for adding talent (and payroll), of course. The trade market is one avenue for adding MLB talent that the club has been candid about exploring this winter. Cubs outfielder Cody Bellinger and Diamondbacks southpaw Jordan Montgomery are two high-priced players known to be available in the rumor mill who the club could swing deals for if they want to immediately put themselves in position to avoid a grievance in one fell swoop, but there’s a large swath of other players expected to be available this winter who could add to the club’s payroll in a less drastic fashion. Rays first baseman Yandy Diaz, Cubs second baseman Nico Hoerner, and Cardinals southpaw Steven Matz are among a handful of possible trade candidates who will make $10MM or more in 2025.
Another route the A’s could take to raise the luxury tax payroll that wouldn’t require convincing a free agent to sign or swinging a trade with another club would be signing a player already in the organization to an extension. Reporting over the weekend indicated that the Athletics have interest in negotiating an extension with breakout slugger Brent Rooker. MLBTR contributor Matt Swartz projects Rooker to earn $5.1MM in his first trip through arbitration this winter, and any extension that would guarantee Rooker an AAV higher than that $5.1MM figure would increase the club’s luxury tax payroll. As MLBTR’s Mark Polishuk noted over the weekend, it’s possible that even if the A’s and Rooker aren’t interested in agreeing on a long-term deal that buys out some of Rooker’s free agent years, an extension that covers his arbitration years could offer certainty to both sides. Such an extension would come with an additional boon for the A’s in light of their current predicament by surely raising the AAV on Rooker’s 2025 contract, though no realistic extension could be expected to raise the club’s tax payroll by the $26.5MM needed to avoid risking a grievance by itself.
