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Contextualizing the luxury tax penalties

The Red Sox can always spend more money, just like any other team in baseball. Professional baseball teams in today’s game print money, particularly marquee franchises like the Red Sox and Yankees. Just with the basic revenue alone they can afford a massive payroll. That of course doesn’t even count the valuation of teams, which is the real money maker for owners. Even if teams operate at a loss — and with TV money and revenue sharing that is basically impossible at this point — owners are guaranteed to make their initial investment many, many times over when they sell the team.