3 reasons why the Angels getting under the luxury tax threshold in 2023 is a big deal

At least they did this right.

Seattle Mariners v Los Angeles Angels
Seattle Mariners v Los Angeles Angels / John McCoy/GettyImages
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2) With the Angels under the luxury tax, they can now go over it in 2024 with less severe penalties

With the Angels not going over the tax in 2023, they now have more freedom to do so in 2024 with lesser penalties.

Teams that go over the tax for the first time are charged 20 percent on every dollar spent over the tax. For those who go over for the second time, that number jumps to 30 percent. This might not be a big deal for owners who are willing to go all out like Steve Cohen, but for the frugal Arte Moreno, this certainly matters.

Moreno might not have been willing to go over the tax had he done so in 2023, but this makes it at least a bit more likely that the Angels will do so in 2024.

Right now, the Angels luxury tax payroll sits at around $161 million according to Spotrac which is much lower than the $237 million CBT threshold. They have the wiggle room now, but if they were to sign Ohtani they'd be a whole lot closer without room to operate. Perhaps the fact that they didn't go over the tax in 2023 will make it more likely for Arte to bring the Angels over the tax at least in the event that Ohtani returns (should be either way, though). The Angels can now sign Ohtani and another high-priced free agent and not worry about the tax nearly as much.