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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  • he played 2nd (not that well) when he first came up when maddon wasn't busy trying to make lineup space for jonathan herrera.

    it's one of those things where baez is more talented, but that talent allows him to play 2nd as well as SS while russell excells at SS compared to his play at 2nd.

    that said, if they decide baez is in a groove they might shift russell to 2nd anyway... *shrug*

    crunch 15 min 43 sec ago view
  • n.hoerner took one off the wrist and was removed from the smokies game.  boo.

    also, cory abbott had another good outing.

    crunch 31 min 31 sec ago view
  • I was thinking the same thing.  Has Addy taken any reps at 2nd? 

    Sonicwind75 33 min 5 sec ago view
  • No way in hell should they move Baez off of shortstop when Russell in back.

    Hagsag 46 min 56 sec ago view
  • rizzo did a good baseball thing.  hopefully more of that will follow.  HR #195 career.

    maeda kinda sucks tonight.  he picked a great night for it.

    crunch 1 hour 8 min ago view
  • Thanks PHIL!

    A killer ASS.

    Jake Stinnett on the Cubs radar anymore?

    The E-Man 1 hour 29 min ago view
  • crowd is heavily sparce for a LAD/CHC night game except for the bleachers...even if it is a cold april night.

    crunch 1 hour 54 min ago view
  • David Bote to the Paternity Leave List and LHP Randy Rosario is recalled from Iowa, so the Cubs will apparently go with a nine-man bullpen and a three-man bench while Bote is absent. 

    Arizona Phil 2 hours 17 min ago view
  • Crying poor is more acceptable than honesty, if honesty would note a "gentleman's agreement" between the Yankees, Dodgers, Cubs, and Red Sox to not go over the spending limits.

    In the highly unlikely case that's in play.

    tim815 8 hours 49 min ago view
  • I agree that for only 3 games, taking into consideration option years and 40-man roster makes complete sense.  Guess I'm still a little peeved about the Ricketts crying poor when they more than likely have a lamp not being used that costs more than $25k. 

    Sonicwind75 9 hours 43 min ago view
  • VA PHIL: It's not better to be a cheetah if you end up with a suspension that keeps you off the savannah for 80 games.  

    Arizona Phil 11 hours 28 min ago view
  • Rob Richardson 11 hours 57 min ago view
  • As long as you're one of the faster gazelles, it's probably ok!

    Charlie 12 hours 7 min ago view
  • "Best comp is a juvenile Thomson's Gazelle on the African savannah."

    It's better to be the cheetah in that scenario.

    VirginiaPhil 12 hours 26 min ago view
  • Thanks, Phil.

    K Dub 16 hours 35 min ago view
  • Hey Phil, I saw where the Cubs recently traded for some additional international pool money. Have they made any recent signings of note?

    azbobbop 23 hours 7 min ago view