Since the league suspended luxury tax payments for the pandemic-shortened 2020 season, 2024 marks the first time the Astros have exceeded the Competitive Balance Tax limit. Houston’s team-record $244MM in payroll came with an estimated $262MM in taxes, putting the Astros atop the second tier ($257MM) in tax penalties. The increased price tag could be considered the cost of keeping together a perennial contender, and sure enough, the Astros won the AL West again in 2024 before being upset by the Tigers in the wild card round.
The Astros now enter the offseason with a lot of cash on the books. RosterResource projections have Houston paying around $215MM and a $233.7MM tax number for 2025, which puts the Astros just under the $241MM CBT limit. A few million could be shaved off using tenders, however big a move like a re-signing Alex Bregman that alone could bring Houston closer to its 2024 numbers, even before the Astros address other roster needs.
Owner Jim Crane at least left the door open to spending the same amount and paying another tax bill, telling The Athletic’s Chandler Rome and other reporters that “We have the ability to do it if we need to.” However, Crane added caveats by commenting “it depends on which players are there. It is clear what needs we have. We want to try to field the best team we can without going crazy….We run it like a business and make good decisions..”
Even these measured comments may bring little relief to Astros fans worried about how aggressive the team plans to be this winter. GM Dana Brown said last month that “we might have to get a little creative” on the roster, and it should be noted that Crane’s words don’t contradict Brown’s statement in any way — naturally, every team wants to be as efficient as possible with their spending.
Crane said “we have money that will come out of the salary next year,” which could provide a clue to Houston’s long-term plans. Kyle Tucker, Framber Valdez, Ryan Presslyagain Victor Caratini all are set to hit free agency next season, and the Astros will once again be free of the debt obligations they still owe. Jose Abreu again Rafael Montero. While keeping Tucker or Valdez on Houston’s radar, the Astros may be willing to re-sign Bregman or make another move or two this offseason and take on one year of CBT with an eye toward possibly resetting their tax situation this winter. you ask. once they receive additional salary relief.
Speaking of Bregman, Crane reiterated the team’s desire to retain a veteran third baseman. The team’s strategy is to allow Brown to handle negotiations with Bregman’s agent, Scott Boras, although Crane noted that he has personally spoken with Boras “once in the morning” last season. Crane acknowledged that the Astros were looking at potential Plan B options if Bregman signed elsewhere, though that’s common practice in any front office.
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