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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  • George Altman 15 min 45 sec ago (view)

    If this post had a 'like' button, I would press it.

     

  • Arizona Phil 48 min 32 sec ago (view)

    Infielders Ed Howard IV, Fabian Pertuz, Ryan Reynolds, and Yeison Santana, 1B Grayson Byrd, and OF Darius Hill  have been moved down to the Myrtle Beach (Lo-A) squad from the South Bend (Hi-A) squad at Minor League Camp. 

     

  • Jackstraw 1 hour 38 min ago (view)

    I think somebody finally found and turned off the SUCK mode on their Cubs game controller. 

    It's important we ALL do that, every day.

     

  • crunch 4 hours 57 min ago (view)

    i think the cubs can risk losing shelby miller.

     

  • Dolorous Jon Lester 5 hours 43 min ago (view)

    Contreras is amazing. It's why I've been so adamant that its completely nuts how often he's popped up in trade rumors. 

     

  • Sonicwind75 5 hours 45 min ago (view)

    And the baseball gods smite us with great vengeance. 

     

  • crunch 6 hours 33 min ago (view)

    in a world of bryzzo and baez, contreras deserves his props for his all-around game.

    he protected lester's shortcomings for years.  good luck with that 40% caught stealing rate and less people attempting it in WAS with aged alex avila and yan gomes, guy.

     

  • crunch 6 hours 51 min ago (view)

    cubs are scoring runs early and have a lead.

    i'm not prepared for this.  deep down inside i'm nearly positive this is a good thing, but i'm going to do some research and try to make sure this is a good thing.

    okay, i just checked with my friend that's a dodgers fan and this is a good thing.  go cubs.

    game 14...only the 2nd time with multiple extra base hits in an inning for the cubs this year according to boog.

     

  • Dolorous Jon Lester 8 hours 6 min ago (view)

    Winkler and Workman return today, Steele and Strop head to alternate site.  Yay

     

  • Charlie 9 hours 50 min ago (view)

    No numbers really needed to show that this offense is terrible right now, but I decided to peruse team stats today to see exactly where the Cubs have struggled the most. I was unsurprised to find they have the third highest pull %, the second lowest line drive %, and the highest K% in the majors right now. BABIP is also the lowest in the majors, whih is to be expected when the team is making poor contact and doing so in the teeth of the shift.

    That's not fun baseball to watch.

     

  • Dolorous Jon Lester 11 hours 15 min ago (view)

    Don't worry, Joc is DEFINITELY an upgrade.

     

  • CTSteve 12 hours 17 min ago (view)

    And off of a lefty. 

    Neat.

     

  • Arizona Phil 16 hours 31 min ago (view)

    Most players get only three minor league options, but a player who has accrued less than five "full seasons" is eligible for a 4th minor league option.

     

  • Charlie 20 hours 1 min ago (view)

    I agree that Contreras really sticks that front elbow (and shoulder and to some extent his head) pretty close to the zone. Plus he likes to reach toward the outer half to pull the ball and sometimes to lunge a little at the outside corner, so pitchers will want to work him inside frequently. He should get a thicker elbow guard.

     

  • bradsbeard 21 hours 5 min ago (view)

    Sounds like Steele will be in line for a 4th option year FWIW. 

     

  • crunch 22 hours 12 min ago (view)

    limited capacity (and it's a "thunderstick" giveaway night), but LAD @ SD is practically a playoff level atmosphere here in april.

    this one could be hot for years.