Phillies' luxury tax bill explains cautious spending approach this offseason

Matt Sullivan

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Phillies' luxury tax bill explains cautious spending approach this offseason image

The Philadelphia Phillies and Dave Dombrowski have been expressing some caution about big spending this winter so far. While they've brought back Kyle Schwarber on a $150 million deal, their other moves this winter will be much cheaper moves.

Adolis Garcia for $10 million and Brad Keller for $22 million likely could only happen thanks to the $7.5 million saved by trading Matt Strahm, and the money that could come off the books by trading Nick Castellanos. But why are the Phillies approaching this offseason so cautiously?

Jess Rogers of ESPN shared the nine-teams who have a luxury tax bill, and while the Los Angeles Dodgers $169 million total is wildly higher than the Phillies, their bill could be the reason for the team's cautious approach this winter.

$56 million reason why Phillies are acting cautiously this winter

Rogers reports that the Phillies' luxury tax bill is for $56,061,903. A $56 million bill for the 2025 season could be the reason why Dombrowski and John Middleton are being more careful about their spending.

Bringing Schwarber back was a priority, no matter the cost, and they got that done. But any additions beyond that might be far-fetched.

Garcia and Keller's combined $32 million isn't much, especially when it comes to fielding a competitive team in 2026. The Phillies are being careful with their payroll, but still want to build a serious contender for the World Series.

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But when it comes to another big-name free agent, expect the Phillies not to be involved barring a collapsing market.

Philadelphia is being careful this winter, and with Castellanos massive $20 million contract and Taijuan Walker's $18 million contract coming off the books after 2026, the Phillies will have some more money to spend next offseason.

But, for now, the Phillies will keep their spending down, as the team plans to express caution with their payroll for the rest of this season, thanks potentially to the $56 million luxury tax bill they received this winter.

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