Tom CarrollMon, December 1, 2025 at 6:10 AM UTC·7 min readMassLive’s Sean McAdam reported Sunday that Red Sox ownership is concerned about exceeding the $244 million Competitive Balance Tax threshold in 2026, as this could trigger financial penalties and other operational restrictions.
According to the report, team officials believe crossing that line would result in a “moderate financial loss.” Because MLB teams do not share their financial records, it’s impossible to verify whether that claim reflects actual revenue projections or an internal preference for maintaining a certain level of spending discipline.
AdvertisementAdvertisementAdvertisementAnyone with a brain can tell you that it’s almost certainly the latter.As you can imagine, the internet was not happy with this report.
With multiple members of the Red Sox power structure sending a completely different message just a few weeks ago on various different platforms, this report from McAdam, albeit unsurprising, hit like a ton of bricks for most of the Red Sox community online.
Here’s a sampling of what various members of Red Sox Twitter had to say in the aftermath:
Tyler Milliken, 98.5 The Sports Hub: “Hate the sound of that. No reason they shouldn’t be pushing up to $284 MM. As long as there’s no draft penalty, spend the damn money.”
AdvertisementAdvertisementAdvertisementGordo, Play Tessie: “Obviously would love them to go higher but not remotely surprising that they won’t. Haven’t ever shown a willingness to go there. Also consider me skeptical that this organization loses money with a $244M payroll.”
Savage Sports, X: “Absolutely embarrassing that John Henry and the Red Sox are leaking to the media that they aren’t going to be a top of the league spending team and that they don’t want to operate at a financial loss. Basically lying through the media that they operate at a loss. Truly embarrassing.”
JayHayKid, Underdog: “We don’t thank MLB owners frequently enough for their sacrifice in taking on the burden that is owning a baseball team.”
Dan Lifshatz, Boston Handicappers Network: “John Henry is lying to us. The Sox would NOT operate at a loss at 285 million. Nothing new from this lying, greedy owner.”
AdvertisementAdvertisementAdvertisementJack Lautaret, Chat Sports: “Are the Red Sox considering NOT spending big AGAIN? If so, John Henry should SELL THE TEAM.”
Craig MacCormack, Veteran Journalist: “Financial loss? Last time I checked, John Henry is a freaking billionaire. Please stop spinning lies.”
Daniel Fox, Just Baseball: “If you are surprised that John Henry is reluctant to go well over the luxury tax threshold, you haven’t been paying attention over the last 25 years. The question is whether Craig can convince him to spend more a la Dave Dombrowski with David Price.”Sammy James, Play Tessie: “No surprise. Red Sox will continue to put self-imposed restrictions on its own front office. It's like reverse training wheels for Craig Breslow. This is why I was concerned when the Blue Jays signed Dylan Cease. Sure, that contract will look bad in 2031, but in the immediate Toronto's willingness to spend will make life tough for the Red Sox—who's World Series window should be open in 2026. And you can include the Yankees in that too, say what you want about them but they spend money and they're good every year. It's hard to beat teams like that when ownership limits spending to such a degree. Time for Ol' Bres to get creative.”
Apr 15, 2022; Boston, Massachusetts, USA; Boston Red Sox owner John Henry at Fenway Park before a game against the Minnesota Twins. Every player is wearing number 42 in honor of Jackie Robinson. (Paul Rutherford/Imagn Images)Jame Stewart, 98.5 The Sports Hub: “Modest financial loss” [eye roll]. They made more than $500 million in 2025. Maybe eliminate some of the 400 data analysts and invest more in on field players.”
AdvertisementAdvertisementAdvertisementRed Seat Radio, X: “Never fails. Wonder if Craig can get sneaky with a Yoshida, Hicks or even Duran trade to work in this. Shouldn’t have too though.”
Tommy Bennett, Baseball Scoops: “You traded Devers to legitimately recoup the money, as the Giants took on the entire deal. Yes you extended Crochet, Anthony, but now sink that money back into the team. No reason to not spend the money.”
Matthew Crory, The Pesky Report: “Obviously it’s early but this would imply needing to get even more creative with trades and offloading money (Yoshida, Hicks) if we want to keep adding high end payroll. We are the Red Sox, it shouldn’t be like this.”
Matthew Boyle, Breitbart: “The Sox know what they need to do to win. They need to get Bregman back and another big bat (or two big bats if they lose Bregman). They also need an actual No. 2 starter behind Crochet — like Joe Ryan or someone like him. And yes they probably need some lefties in bullpen. Anything short of all this, no matter what it costs, should be seen as a middle finger from ownership to the fans. They don’t need to go as high as $300M to accomplish it all, but they do need to get much closer to that number than they’re currently talking about. Super simple. Either they’re serious or they’re not. Go big or go home.”
AdvertisementAdvertisementAdvertisementMartin Sekulski, The Dynasty Guru: “Told you. They aren’t that team anymore. They COULD be, but are choosing not to be. So we go with lesser FA spend and hope that internal options can deliver. So far they haven’t.”
Dan Kelley, Veteran Sportswriter: “I understand franchises are businesses, but there’s a level of wealth I’ll never understand. I’ve never had much money and likely never will. John Henry has an estimated worth of $5.5 billion and is 76. He could live to 101, lose $200M/year, and still have half a billion dollars!”
Nación Patriota, X: “Can someone explain to me why the Red Sox are so stingy with such a rich owner?”
Hogdale, Barstool Sports: “Thing is, I’m not as irritated as I should be, just because this is - I feel like we all knew this was the case. Every single one of us were 100% aware that the Boston Red Sox were not gonna go over the second CBT threshold. We all operated under the assumption that, like, OK, they had about $39 million, and they should spend more, because you’re the f****** Boston Red Sox. You’re the second most valuable franchise on planet earth. I believe in terms of pure cash flow revenue, they make more money than any baseball team. If not, they’re like second to the f****** Dodgers. So yeah - obviously, the Red Sox should spend more money.
AdvertisementAdvertisementAdvertisement"Obviously spending money, throwing money at problems in a smart way is how you win championships. The Red Sox have shown themselves by winning four titles in that exact fashion. And yeah, it’s a complete f****** joke that they’re not willing to spend, but it’s not something that any of us are surprised about. This report is barely a report. Like, it’s something that we all knew as an unspoken understanding, repeated louder. Nothing against Sean McAdam. Like, he’s just doing his job. But like, we all knew this information. And now the dialogue is coming, because yeah - they don’t spend. They don’t spend the way they should. This is a team that prints money. And all we ask is for you to reallocate the printed money into the f****** product in a way that, you know, benefits the team and wins them a championship. So yeah, none of us are surprised. It sucks. It’s irritating. But you know, whatever. We push forward, we’ll see what the offseason has in store for us going forward.”
Jul 5, 2015; Boston, MA, USA; Boston Red Sox owner John Henry watches the game between the Boston Red Sox and the Houston Astros during the fourth inning at Fenway Park. (Winslow Townson/Imagn Images)And for the most detailed voicing of displeasure of Red Sox ownership that I saw on the internet today, here’s what X user Hunter Treacy had to say:
“What a gross bit of planting by John Henry and @FenwaySportsGrp. This means he’s capping the team at $264mm. We’re already at a $223mm cap hit—but only have an estimated payroll of $177mm. Our payroll was over $200mm last year. 11 teams spent more. Forbes estimates the Red Sox made $120mm in operating income in 2024 (on $184mm payroll). Attendance increased by 4.4% YoY in 2025 and stands to inch higher in 2026. Ticket prices continue to increase.
AdvertisementAdvertisementAdvertisement“So let’s do a bit of math:
"$120mm baselinex ~1.10 gate revenue= $132mm adjusted baseline+ $7mm deficit in spending from 2024 to 2026= $139mm operating income for 2026
“$224mm-$244mm in cap hit costs the team a $6mm surcharge in 2026 and a $10mm surcharge in 2027 and beyond.
“$244mm-$264 in cap hit costs the team a $8.4mm surcharge in 2026 and a $12.4mm surcharge in 2027 and beyond.
“$264mm-$284mm in cap hit costs the team a $14.4mm surcharge in 2026 and a $19mm surcharge in 2027 and beyond. Draft pick penalties are enforced here as well.
“$284mm and beyond in cap hit costs the team a 90% surcharge on every dollar in 2026 and a 110% surcharge in 2027 and beyond.
AdvertisementAdvertisementAdvertisement“So could the Red Sox afford a $284mm cap hit ($238mm payroll)? Absolutely:
$139mm current expected operating profit- $61mm additional payroll- $28.8mm luxury tax surcharge= $49.2mm operating income
“The team could afford nearly a $310mm cap hit ($264mm payroll) in 2026 and still break even. To put it more plainly: the Red Sox can spend $87mm of additional payroll in 2026 and still break even. Stop lying to us, John Henry. If you’re so dissatisfied with the performance of this asset, then sell. Boston deserves an owner who prioritizes winning over margins.”
It is, of course, only a few days after Thanksgiving. There’s plenty of time for ownership to prove everyone wrong.
AdvertisementAdvertisementAdvertisementUnfortunately, their recent track record tells us what McAdam reported is almost certainly what we’re to see unfold over the next couple months.
The Red Sox remain as the team with the seventh-best odds to win the 2026 World Series.
Tom Carroll is a contributor for Roundtable, with boots-on-the-ground coverage of all things Boston sports. He's a senior digital content producer for WEEI.com, and a native of Lincoln, RI.
AdvertisementAdvertisement