7/17 14:19: A Major League source close to Nick Cafardo of the Boston Globe says the Red Sox have found out that they have gone over the luxury tax threshold for 2010 which will also affect their payroll for 2011.

The Red Sox will now be taxed at the 22.5% rate for payroll over $170 million. Next season that rate increases to a 30 percent tax for a payroll of $178 million.

Buster Olney of ESPN the Magazine tweets, “Yes, the Red Sox are due for some luxury tax, but they are operating under the same parameters as they always have, according to folks in the organization — if they feel like a particular acquisition could be help the team make the playoffs, they’ll do that. Given their current investment in the 2010 team, it would make no sense to refuse to add anything because of a relatively small luxury tax.”

7/15 11:15: According to a source close to Ed Price of AOL FanHouse, the Boston Red Sox are not willing to add significant payroll. The issue is the Major League Baseball’s “luxury tax” aka the Competitive Balance Tax.

Price says, “That tax, which in the Red Sox’ case would be 22.5 percent of every dollar over $170 million in payroll, is based on the so-called “actual club payroll,” not the Opening Day payroll. So the pro-rated salaries of any players acquired in a trade would count toward that figure.”

He adds that the front office would have to “jump through hoops” just to add $500,000 in salary over the rest of the season.

The Red Sox have a significant number of players on the disabled list and it’s likely the team will have to wait out the injuries rather than add to the team through trades or free agent pick ups.

Yesterday GM Theo Epstein may have tried to downplay his inability to add to this team by saying “I don’t think it’s the greatest crop in the world of available players. If you compare this year’s crop to last year’s, there’s a big difference.”