Steve Cohen plans to keep New York Mets' luxury tax penalty at bay

Steve Cohen, the owner of the New York Mets, has opened up about his long-term plans for the team, which includes guiding the team out of the tax bracket. He has made it clear that he wants to manage the payroll in such a way that he won't have to pay tax anymore.

Cohen, who bought the team in November 2020, has been an active participant in shaping the future of the New York Mets. He has already made some big moves in the offseason, bringing in top-tier talent and spending big on upgrades to the team's infrastructure. However, his primary focus remains on reducing the team's payroll and ensuring that the team is financially stable in the long run.

The Competitive Balance Tax, also known as the luxury tax, is a penalty that Major League Baseball imposes on teams whose payroll exceeds a certain threshold. For the 2023 season, the threshold is set at $233 million.

Teams that exceed the threshold must pay a tax that ranges from 20% to 50% on the amount over the limit. For this season, the New York Mets are currently set to pay a staggering $98.6 million in luxury tax, smashing their own record from last year.

Speaking to ESPN's Jeff Passan, Cohen explained his reasoning towards the amount he has spent in the last two years:

"You're already in a high bracket. What I think about is making income. If I make income, it solves problems. It'd be great to get the payroll to the point where I don't have to pay tax anymore. That's the goal. If we do our job and develop a farm system and get a nice, sustainable pipeline going, we should be able to accomplish that."

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Jeff Passan

@JeffPassan

"I'm going to do it my way."

Exclusive at ESPN+: A 1-on-1 conversation with New York Mets owner Steve Cohen, who talks about the team's record payroll, why other owners need to look in the mirror and what's next for the most fascinating team in baseball. es.pn/3I1AkiK

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"I'm going to do it my way."

Exclusive at ESPN+: A 1-on-1 conversation with New York Mets owner Steve Cohen, who talks about the team's record payroll, why other owners need to look in the mirror and what's next for the most fascinating team in baseball. es.pn/3I1AkiK https://t.co/BIiwWrny28

Can Steve Cohen really steer the New York Mets clear of the luxury tax?

To achieve this goal, Cohen and the New York Mets' front office will have to be strategic in how they spend their resources. They will need to focus on developing young talent, acquiring players who have been under team control for multiple years, and making smart investments in free agents in the MLB and beyond. They will also need to be mindful of their payroll structure and avoid overpaying for players who are unlikely to provide a return on investment.

Cohen has indicated that he is willing to invest in the team's infrastructure, including its scouting and player development departments. With a strategic approach to spending, a focus on developing young talent, and a willingness to invest in the team's infrastructure, Cohen is poised to achieve his goal and bring a winning culture back to New York along with the World Series title.

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