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. 
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) 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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  • Arizona Phil 1 hour 39 min ago (view)

    Ian Happ arbitration figures are $4.1M (player) and $3.25M (club) with hearing date TBD. 

     

  • crunch 1 day 12 hours ago (view)

    * all figures stated are in a range of +/- 10m

    yeah, that was me not typing info correctly.  my bad.

     

  • Arizona Phil 1 day 15 hours ago (view)

    Bryant got $19.5M 

     

  • crunch 1 day 17 hours ago (view)

    bryant 9.5m, contreras 6.65m, baez 11.65m, z.davies 8.63m

    looks like happ is going to arbitration.

     

  • Arizona Phil 2 days 14 hours ago (view)

    RHP Edward Vasquez (2017 IFA - Dominican Republic) has retired.

    E. Vasquez was one of the top SP on DSL Cubs Red in 2019 and was expected to be a SP on one of the Cubs AZL teams in 2020 if the minor league season hadn't been canceled.

    He would have been first-time Rule 5 Draft eligible post-2021. 

     

  • K Dub 2 days 17 hours ago (view)

    Thanks Phil!

     

  • crunch 2 days 19 hours ago (view)

    danny hultzen retires and joins the cubs as a "pitching development assistant"

    shame the comeback story didn't last longer...but hey, at least he got to taste the bigs after his body failed him for so many years.

     

  • crunch 2 days 22 hours ago (view)

    theo joining the commish's front office operation as a "consultant reguarding on field matters"...basically weighing in on the possible impact of rules changes.

     

  • Arizona Phil 3 days 1 hour ago (view)

    https://www.thecubreporter.com/comment/266505#comm...

     

  • K Dub 3 days 1 hour ago (view)

    Yeah, to my calculation that suspension should be over by now unless he got caught again...

     

  • Wrigley Rat 3 days 4 hours ago (view)

    (Not Phil) - Last I saw, he was on the restricted list.

     

  • K Dub 3 days 6 hours ago (view)

    PHIL: Did the Cubs release Saul Vazquez?

     

  • Sonicwind75 6 days 23 hours ago (view)

    The 2021 guaranteed amount is $7 + $3 million mutual option buyout. 10>8.  Most media reports summarizes it as a $10 million deal. 

     

  • CubbyBlue 1 week 18 min ago (view)

    Thanks Eric. After I put it up I thought.. damn I'm old. I wonder if people even remember back that far. I still think about that day. Uggh. Sorry. 

     

  • Charlie 1 week 31 min ago (view)

    I'm always confused by this. They also could have tendered him and then boosted his value by trading him with a million or two in cash considerations. Obviously, that's a million or two more expensive than simply non-tendering--but couldn't you at least get an interesting prospect in return from one of these teams? They obviosuly thought it was worth their return to toss in a few million in the Darvish trade.

     

  • tim815 1 week 1 hour ago (view)

    The 2021 amount is 7.

    The buyout is 3.

    8>7