Competitive Balance Tax

The Competitive Balance Tax (CBT) threshold will be $195M in 2017, $197M in 2018, $206M in 2019, $208M in 2020, and $210M in 2021. 

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. 

In addition, MLB Player Benefit Costs (PBC) and 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) 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 CBT threshold will pay a 20% tax on the portion of the payroll that exceeded the CBT threshold, a club whose payroll from both the just-concluded MLB season as well as from the MLB season immediately prior to the just-concluded MLB season exceeded the CBT threshold will pay a 30% tax on the portion of the payroll from the just-concluded MLB season that exceeded the CBT threshold, and a club whose payroll from the just-concluded MLB season as well as from the two MLB seasons immediately prior to the just-concluded MLB season exceeded the CBT threshold will pay a 50% tax on the portion of the payroll from the just-concluded MLB season that exceeded the CBT threshold. 

A club whose payroll from the just-concluded MLB season exceeded the CBT threshold by more than $20M will pay an additional surcharge of 12% on the portion of the club's payroll in excess of $20M over the threshold, and a club whose payroll from the just-concluded MLB season exceeded the CBT threshold by more than $40M will pay an additional surcharge of 42% on the portion of the payroll in excess of $40M over the threshold.
NOTE: The surcharge for a club whose payroll from the just-concluded MLB season exceeded the CBT threshold by more than $40M will be 45% on the portion of the payroll in excess of $40M over the CBT threshold if the club paid a CBT tax in the both the just-concluded MLB season as well as in the MLB season immediately prior to the just-concluded MLB season.

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  • Charlie 1 hour 6 min ago (view)

    I dub this canon.

     

  • Eric S 10 hours 23 min ago (view)

    Good deal - much better ballpark experience than at the Ted. Atlanta fans are buying in and showing up. 

     

  • Eric S 10 hours 40 min ago (view)

    It’s a shame that they had to burn Cishek with a five run lead. I guess they could have used Brach or Caratini. Probably not enough time to warm up Caratini. Wouldn’t want to risk blowing the lead with Brach. 

     

  • crunch 10 hours 53 min ago (view)

    gonna be in ATL over the 4th and catching the young braves club in person.  i really don't like going to that park (hey, who wants 3-4 hours of the "tommy hawk chawp"?), but i wanna see this collection of kids.

     

  • Eric S 10 hours 54 min ago (view)

    Kyle Ryan playing like a man who wants to keep his big league roster spot - well done!!

     

  • crunch 10 hours 55 min ago (view)

    if javy has the ball you gotta play like you're on a basketball court.  until the play is dead, no matter what your view is, that ball could be coming at you at any time from any angle.

    bote also goofed earlier in the season playing 3rd during a lester start by not knowing how extreme one needs to cover for him.  yeah, technically it should be lester's play, but realistically the 3rd baseman has more range to cover with lester on the mound.

     

  • Eric S 10 hours 57 min ago (view)

    Barnette’s 88-91 mph fastball really is, uh, not very special. 

     

  • Eric S 10 hours 59 min ago (view)

    But for Flowers and the pitchers spot, the Braves lineup is relentless. When McCann plays, the only hole is the pitchers spot. Tough club. 

     

  • crunch 11 hours 3 min ago (view)

    welcome to the cubs barnette.

    6 pitches to his 1st batter, solo HR.

    you're gonna fit in just fine.

     

  • Eric S 11 hours 20 min ago (view)

    Thanks Phil. What kind of prospect(s) do you think it would take to pick up Melky?

     

  • Eric S 11 hours 30 min ago (view)

    Not the first time Bote has frozen on a catchable ball from Javy at second ... and leads to two unearned runs. Damn. Love Bote, but when you’re playing with Javy, you better expect the unexpected 

     

  • crunch 11 hours 51 min ago (view)

    mission accomplished.

    also, wow at that 10 mile long leash teheran got to totally suck.

     

  • Eric S 11 hours 56 min ago (view)

    Pro tip to the Cubs: score a ton of runs, then score a ton more. These Braves specialize in pulverizing and bludgeoning teams into oblivion, particularly after the six inning. 

     

  • Eric S 12 hours 2 min ago (view)

    Walnuts suck. Just sayin’

     

  • Arizona Phil 12 hours 10 min ago (view)

    The Cubs have officially signed three more 2019 draft picks: RHP Zach Bryant (15th round - Jacksonville), RHP Johzan Oquendo (16th round - Leadership Christian Academy - Guaynabo, PR), and RHP Shane Combs (31st round - Notre Dame). 

    So the Cubs have now signed 24 of their 40 draft picks. 

     

  • Arizona Phil 12 hours 18 min ago (view)

    ERIC S: Dixon Machado is a glove-first SS (can also play 2B-3B) and a high contact hitter who is starting to show some HR pop. As for a veteran bat who might be available in a trade, OF Melky Cabera (PIT) might be a good target (switch-hitter who can play both OF corners).