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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  • bradsbeard 1 hour 38 min ago (view)

    On the position player side, Amaya if he's healthy. Chase Strumpf makes a lot of sense (missed some time early and late, missed all of last year). Nelson Velazquez maybe as a Rule 5 guy if they're on the fence. Cam Balego and Andy Weber are two other candidates if healthy. Luis Vazquez could also use more upper level PAs and would make sense.

    Lots of potential pitchers. Ideally Marquez but not sure they'll let him pitch this year. McAvene is probably another one. Would be awesome if Kohl Franklin could participate. 

     

  • First.Pitch.120 2 hours 55 min ago (view)

    Thanks!

     

  • Arizona Phil 7 hours 28 min ago (view)

    Cubs select contract of RHRP Jason Adam from AAA Iowa and he will be the "29th man" in today's DH with STL. Also,.C Robinson Chirinos to 10-day IL with oblique strain, and OF Greg Deichmann has been recalled from Iowa.  

     

  • Arizona Phil 8 hours 38 min ago (view)

    FP120: The Cubs have been working on pick-off plays, baserunning including rundown ("pickle") drills, amd bunt defense in pre-game and Camp Day instructional work, so it's kind of a "Point of Emphasis." Apparently it's still a work-in-progress for a lot of the guys.And it's not just pick-off plays, either. At least two or three guys have been picked-off in the first three games and there have been a couple of other baserunning gaffes as well. But that's what instructs is for, right?

     

  • First.Pitch.120 21 hours 32 min ago (view)

    So what's the deal with 5 pick off attempt errors in 3 games?

     

  • Arizona Phil 22 hours 29 min ago (view)

    Because the Cubs play only the Angels, A's, and Rockies in Instructs this year, I would not be surprised if the Cubs make a trade or two with one or more of those clubs, most especially the Angels, who might be interested in acquiring Kyle Hendricks (since they certainly can't do a rebuild with Trout, Ohtani, and Rendon on the roster). 

     

  • Arizona Phil 22 hours 31 min ago (view)

    The pitching-starved Angels established an MLB (and probably Ripley's Believe It or Not) record by selecting - ONLY - pitchers in the 2021 draft. That's twenty pitchers. No position players. They signed 19 of the twenty, and five of them pitched in today's game (2021 15th round pick Glenn Albanese Jr started the game, followed by 18th round pick Nick Mondak, 7th round pick Ryan Costeiu, 8th round pick Nick Jones, and 16th round pick Nick Dufault). 

     

  • Arizona Phil 22 hours 31 min ago (view)

    Cubs 2020 4rh round draft pick 6'8 220+ LHSP Luke Little threw mainly a 93-97 FB with an occasional CV and CH mixed-in but pitched mostly from behind in the count, issuing two walks, hitting a batter, and throwing a WP (and surrendering a towering three-run HR) in 2.1 IP of work, LHP Angel Rodriguez was able to throw strikes with a 90-91 MPH FB, CH, and CV mix, but was pounded to the tune of five singles, a double, and a triple in just 2.2 IP, Cubs 2021 14th round draft pick RHRP Frankie Scalzo featured a 93-95 MPH FB but sometimes hung his SL and was hit hard and allowed a HR and five sing

     

  • crunch 1 day 57 min ago (view)

    chris clarke could use the work.

    brennen davis...bryce ball and casey opitz, maybe.  *shrug*

    i'd like to see ethan roberts in the mix.

     

  • ggross 1 day 8 hours ago (view)

    Phil (or anyone else),

    Who are your guesses for Cubs in the Fall League this year?  When will the announcements be made?  Thanks!

     

  • Dolorous Jon Lester 1 day 9 hours ago (view)

    My guess is another reliever. Already have Romine around to back up Willson, wins don't matter, might as well use his worthless ass.

     

     

  • tim815 1 day 19 hours ago (view)

    So, Erick Castillo for Robinson Chirinos?

     

  • Childersb3 1 day 21 hours ago (view)

    Phil, is that the one of the best Cubs AZIL team games you've seen in a while? It reads like it!!!!

     

  • Arizona Phil 1 day 22 hours ago (view)

    BOB: They play mostly in the afternoon, sometimes in the morning, some teams are playing night games.  Fan attendance varies from place to place. 

     

  • Arizona Phil 1 day 23 hours ago (view)

    The Cubs have added Bryan Serra to their Instructs roster. Serra was signed as a 19-year old infielder out of Venezuela in August 2020, and began the catcher conversion program at Minor League Camp this past April. He will be continuing the process at Instructs.   

     

  • crunch 1 day 23 hours ago (view)

    hendricks...

    i miss good hendricks.