What is this threshold? Same as the previous first round/second round threshold? Luxury tax threshold. Last year only 4 teams(Dodgers, Yankees, Red Sox, Tigers) were above the threshold, it looks likely that the Tigers will fall below and possibly the Red Sox and Yankees too, while no teams look likely to jump over it. Isn't this talking about draft pick compensation/loss for FA signings? The threshold he's referencing is the dollar value of the FA contract.