The parties are headed to arbitration to see how much Realmuto will earn in 2020. The catcher has asked for $12.4 million. The Phillies have offered $10 million. Everybody assumed Realmuto would sign a long-term deal with the team this winter. But the dreaded luxury tax appears to be in the way.
Right now, the Phillies payroll stands at $202 million for the 2020 season. If they go over $208 million, they have to pay a 20 percent tax on every dollar over the $208 million threshold. If Realmuto, who also won a Golden Glove and a Silver Slugger last season, gets what he wants, the Phils will be over the threshold.
Team owner John Middleton has said he won't go past the threshold just to make it to the playoffs as a wild card team. If the Phils are contending in this summer, he might consider going over. But it's been made clear that Middleton doesn't want to pay the luxury tax.
And all this risks pissing off Realmuto. He's said he loves the team, his teammates and the city. So you're really going to risk seeing Realmuto walk away next season over $2.4 million? The Phils need to bite the bullet and give the man what he wants. He's the best catcher in baseball.
Avoid arbitration. Sign him to a 4-year deal worth between $90 and $100 million with a huge signing bonus to make the bad feelings go away. Do not screw this up.
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