Champ Red Sox owe $11.9 million — Giants avoid MLB’s luxury tax

NEW YORK — Boston should be happy to pay this tax bill.

The World Series champion Red Sox owe $11,951,091 in luxury tax for having baseball’s top payroll, according to final calculations by the commissioner’s office obtained by the Associated Press. The only other team that owes a luxury tax is the Washington Nationals, who must pay $2,386,097, their second straight year with a bill.

But good news for the Giants, who are beginning a new regime under President of Baseball Operations Farhan Zaidi: After three seasons of paying a luxury tax, 2018 will be tax-free for the team that had the third-highest payroll at $195.7 million.

The Los Angeles Dodgers were fourth at $195 million — up from $182 million on Opening Day. The Dodgers had paid tax in each of the previous five seasons, a total of $149.6 million.

Because Boston was more than $40 million over the tax threshold, it became the first team to incur a new penalty put in place for the 2018 season: the top Red Sox selection in next June’s amateur draft will be dropped 10 places. Boston’s top pick had been projected to be No. 33 overall before the penalty.

Boston has owed tax in the years of three of its four titles this century, paying $3,148,962 in 2004 and $6,064,287 in 2007. The Red Sox stayed under the tax threshold when they won in 2013. The only other championship teams to owe since the tax began in 2003 were the 2009 New York Yankees at $25.7 million and the 2016 Chicago Cubs, at $2.96 million.

The Giants were not charged a luxury tax after their title runs in 2010, 2012 and 2014. However, San Francisco did go over the threshold in three seasons after the 2014 championship in an attempt to win a fourth title, paying a total tax of $8.9 million.

Only two other teams have gone over the tax threshold: Detroit did it three times for a total tax of $9 million, and the Los Angeles Angels paid out $927,000 in 2003, the year after they beat the Giants in the 2002 World Series.

This year’s initial tax threshold was $197 million, counting payrolls by average annual values and including earned bonuses, adjustments for cash transactions and option buyouts and just over $14 million per team in benefits. Boston’s payroll for the tax was $239.5 million, exceeding the $237 million threshold that triggered the draft penalty. Washington’s was $205 million.

Boston boosted its payroll during spring training when it added designated hitter J.D. Martinez, who counted at $23.75 million on the tax payroll and then earned $700,000 in bonuses while leading the major leagues with 130 RBIs.

Ahead of the July 31 trade deadline, the Red Sox acquired World Series MVP Steve Pearce, who added $3,208,602 to the payroll, including a $50,000 Series MVP