Competitive Balance Tax
The Competitive Balance Tax (CBT) threshold will be $230M in 2022, $233M in 2023, $237M in 2024, $241M in 2025, and $244M in 2026.
CALCULATING A CLUB'S COMPETITIVE BALANCE TAX (CBT) LIABILITY:
For the purpose of calculating a club's CBT liability, a club's MLB payroll consists of the Average Annual Value (AAV) of player salaries and bonuses earned by players on the club's MLB Reserve List (40-man roster) and MLB 60-day Injured List.
NOTE: Beginning in 2022, if a club acquires a player signed to a multi-year contract via trade or waiver claim and the player's salary varies from year-to-year (the contract is either "front-loaded" or "back-loaded"), the AAV liability for the acquiring club is whatever salary is left to be paid at the time of the trade or waiver claim.
CoViD-19 EXCEPTION: A club's 2020 MLB payroll is the value of the aggregate contracts prior to salaries being pro-rated due to the truncated season.
In addition, MLB Player Benefit Costs (PBC), the AAV of "legacy salaries" paid to players who are no longer on the club's MLB 40-man roster (such as a player who has been released or outrighted to the minors, or who is being paid a deferred salary after becoming a free-agent), and money contributed to the Pre-Arbitration Bonus Pool are considered to be part of the club's payroll when calculating the CBT.
FINANCIAL PENALTIES FOR EXCEEDING COMPETITIVE BALANCE TAX:
A club whose payroll from the just-concluded MLB season exceeded the Competitive Balance Tax (CBT) threshold by any amount up to $20M will pay a 20% tax on the portion of the payroll that exceeded the CBT threshold, or a 30% tax on the portion of the payroll from the just concluded MLB season in excess of the threshold up to $20M for any club that also exceeded the threshold the season prior to the just concluded season, or a 50% tax on the portion of the payroll from the just-concluded MLB season in excess of the threshold up to $20M for any club that also exceeded the threshold in the two seasons prior to the just completed season.
A club whose payroll from the just-concluded MLB season exceeded the CBT threshold by more than $20M up to $40M will pay an additional surcharge of 32% on the portion of the club's payroll from the just concluded MLB season in excess of $20M up to $40M over the threshold, or an additional surcharge of 42% on the portion of the club's payroll from the just concluded MLB season in excess of $20M up to $40M for any club that was also over the threshold in the season prior to the just concluded season, or an additional surcharge of 62% on the portion of the club's payroll from the just concluded MLB reason in excess of $20M up to $40M for any club that was also over the threshold for two seasons prior to the just concluded season.
A club whose payroll from the just-concluded MLB season exceeded the CBT threshold by more than $40M up to $60M will pay an additional surcharge of 62.5% on the portion of the club's payroll from the previous season in excess of $40M up to $60M, or an additional surcharge of 75% on the portion of the club's payroll from the previous season in excess of $40M up to $60M for a club that was also over the threshold in the season prior to the just concluded season, or an additional surcharge of 95% on the portion of the club's payroll from the previous season in excess of $40M up to $60M for a club that was also over the threshold for two seasons prior to the just completed season.
A club whose payroll from the just concluded MLB season exceeded the CBT threshold by more than $60M will pay an additional surcharge of 80% for the portion of the payroll in excess of $60M over the CBT threshold, or an additional surcharge of 90% for the portion of the payroll in excess of $60M over the CBT threshold if the club that was also more than $60M over the threshold in the season prior to the just completed season, or an additional surcharge of 110% for the portion of the payroll in excess of $60M if the club was also more than $60M over the threshold in the two seasons prior to the just completed season.
Recent comments
Arizona Phil (view)
azbobbop: Yes.
Mike Wellman (view)
I’ve got Tim’s The Last Out too, along with some other prints of his work.
TarzanJoeWallis (view)
Very well played game all around tonight.
crunch (view)
best starter and 2 top hitters from the team gone...and they keep on winning.
little ahead of myself here, but the RSox got 9 outs to find 6+ runs.
TarzanJoeWallis (view)
Richard Gallardo just left the Smokies game with an arm injury after going to the ground following a pitch. Doesn’t sound good at all.
azbobbop (view)
Phil, do you think Wiggins will start out in ACL?
azbobbop (view)
The level of conversation on this site is intelligent, reasoned and informative. Miles ahead of other Cub sites.
Arizona Phil (view)
This was Jaxon Wiggins previous "live" BP on 4/5:
JAXON WIGGINS:
ONE INNING (20 pitches - 10 strikes)
one batted ball in play (F-9 by Stevens)
one walk (B. Davis)
one HBP (B. Davis)
two strikeouts (Peralta & Escobar - both looking)
three swing & miss
two fouls
four called strikes
nine called balls
Arizona Phil (view)
Prior to the Cactus League game at Papago Park, three Cubs pitchers threw "live" BP on Field 1 at the Cubs Sloan Park complex, including RHRP Ethan Roberts (June 2022 TJS) and Cubs 2023 2nd round draft pick RHP Jaxon Wiggins (February 2023 TJS).
Wiggins last threw "live" BP three weeks ago before being shut down for a couple of weeks, and this was the first time Roberts has thrown to hitters in almost two years.
JAXON WIGGINS:
ONE INNING:
25 pitches (11 strikes)
no batted balls in play
two walks (Suriel and J. Diaz)
three strikeouts (Carico, Lubo, and Escobar - all three swinging)
six swing & miss
two fouls
three called strikes
14 called balls
one WP
ETHAN ROBERTS:
ONE INNING
15 pitches (7 strikes)
two batted balls in play (G-3 by Carico and L-9 by Suriel)
two walks (Lubo and Carico)
no strikeouts
no swing & miss
two fouls
three called strikes
eight called balls
one WP
Mat Peters was bumped by Justin Steele from his scheduled game work at Giants, so he threw two innings of "live" BP with Wiggins & Roberts.
MAT PETERS:
TWO INNINGS
44 pitches (23 strikes)
five batted balls in play (F-7, L-7, F-7, G-6, G-3)
three walks
two strikeouts (both Lubo and both looking)
six swing & miss
three fouls
nine called strikes
21 called balls
three WP
crunch (view)
wall stole a HR from busch...double. nice to see him destroy a curve ball.
upon further viewing, that might not have been a homer in too many parks...it had a lot of hang time, though.