After signing Zack Wheeler to a five-year contract worth $118 million, the Philadelphia Phillies are left with roughly $18 million before they exceed the luxury tax threshold of $208 million. With several holes still left to be filled, it is unclear what the Phillies plans will be in dealing with the luxury tax entering the MLB Winter Meetings this week.
The Phillies have not gone over the luxury tax since it was first introduced in 1997. Although the penalties for first time offenders is just a 20% tax on every dollar spent over the threshold for the first $20 million over, they become more severe for repeat offenders.