Competitive Balance Tax

The Competitive Balance Tax (CBT) threshold will be $230M in 2022, $233M in 2023, $237M in 2024, $241M in 2025, and $244M in 2026. 

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 32% on the portion of the club's payroll in excess of $20M over the threshold the first time, an additional surcharge of 42% if a club exceeds the CBT threshold by more than 20% two consecutive seasons, and an additional surcharge of 62% if a club exceeds the CBT threshold three consecutive seasons.

A club whose payroll from the just-concluded MLB season exceeds the CBT threshold by more than $40M will pay an additional surcharge of 62.5% on the amount of the payroll in excess of $40M over the CBT threshold, an additional surcharge of 75% on the amount of the payroll in excess of $40M over the CBT threshold if a club exceeds the CBT threshold by more than $40M for two consecutive seasons, and a 95% surcharge on the amount of payroll in excess of $40M over the CBT threshold if a club exceeds the CBT threshold by more than $40M for three consecutive seasons. 

A club whose payroll from the just-concluded MLB season exceeds the MLB CBT threshold by more than $60M will pay an additional surcharge of 80% on the amount of payroll in excess of $60M over the CBT threshold, an additional surcharge of 90% on the amount of payroll in excess of $60M over the CBT threshold if a club's payroll is more than $60M over the CBT threshold for two consecutive seasons, and a 105% surcharge on the amount of payroll in excess of $60M over the CBT threshoild if a club's payroll is more than $60M over the CBT threshold for three consecutive seasons.

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  • crunch 6 hours 20 min ago (view)

    https://twitter.com/MLBastian/status/1576683740822065152

    Jordan Bastian @MLBastian
    After the Cubs came out to salute the fans, Willson Contreras remained on the field for several minutes to soak it in and wave to the crowd.

     

  • crunch 10 hours 35 min ago (view)

    pinch runner for contreras in the 8th...leaves to a standing O.

     

  • crunch 12 hours 43 min ago (view)

    chase anderson makes it 0.1ip, leaves with the bases loaded and cubs up by 3.

    some lazy fundamentals on defense and lack of making plays are to blame as much as anderson's poor control (3 walks, 1hbp).

     

  • crunch 12 hours 50 min ago (view)

    my god, the reds should be embarrased they exist.  we've seen them play a lot of terrible baseball this year vs the cubs.

    their owner has already hinted next year will not have any notable investment, too. fans are really sour on their ownership group.

     

  • crunch 13 hours 23 sec ago (view)

    ...and a HBP.  legend.

    24th of the year.

     

  • crunch 13 hours 2 min ago (view)

    huge standing O for contreras.  "might be last home game version 3.0"

     

  • George Altman 1 day 4 hours ago (view)

    If you run these projected FA salaries:

    Bogaerts or Turner -- $33-35m

    Josh Bell -- $18-20m

    Rodon  -- $25m

    Senga  -- $18-20m

    With Gomes, Hoerner, Madrigal, Happ, B. Davis, Suzuki, Mervis (DH) -- Stroman, Steele, K. Thompson, Wesneski, this team would fit under the CBT and compete for the Division. 

    That's absorbing Heyward, Hendricks, Bote salaries (if they can't trade Hendricks).

    If I was Hoyer, that's what I would do. By end of 2023 or early 2024, they could have PCA, Amaya, Wicks and Brown ready for MLB Roles.

     

  • crunch 1 day 5 hours ago (view)

    100% true, verified, and certified.

     

  • crunch 1 day 8 hours ago (view)

    thanks for filling in that info.

     

  • Arizona Phil 1 day 10 hours ago (view)

    CRUNCH: Both Nick Hull and Grant Kipp are polished college seniors and should be more than ready for South Bend in 2023. Whether their stuff will be good enough to get AA hitters out once they get there is another matter entirely (TBD). 

    Both Hull and Kipp throw a high percentage of strikes (both over 75%). Hull FB 90-93, SL 82-85, and CV 78. Kipp FB  88-92, CH 80-81, SL 81-82,  CV 77-79.

     

  • Jackstraw 1 day 10 hours ago (view)

    Things more common than discussions about Cubs excess competent SPs:

    Loch Ness Monster sightings

    Bulls dominant Centers

    Yeti footprints

    Great Bears QBs

    Verifiable Bigfoot on crutches photos.

     

    Things as common as discussions about Cubs excess competent SPs:

    Great White Sox managers

     

  • Jackstraw 1 day 10 hours ago (view)

    In my limited viewing/keeping track via ESPN Gamecast my take is all of Assad, Thompson, and Sampson have all pitched like young players with potential....when they are "on" and have good stuff working they look very competitive but struggle mightily and flat out suck when they don't.  I think Thompson is a step ahead of the other two in that regard, with Steele a level better...either he has bad stuff more rarely or has figured out how to compete with B or C game better.  Don't know about Wesneski since I don't know if he's had a bad start yet.  Next step is how do they all adjust to the a

     

  • crunch 1 day 12 hours ago (view)

    NO

    MOREL

    NO

    VELAZQUEZ

    ONLY

    FRANMIL

    AREA

     

  • crunch 1 day 13 hours ago (view)

    hoyer in the booth in the 4th inning for interview...saturday game.

     

  • crunch 1 day 13 hours ago (view)

    given the dumpster fire we've been watching the past 2 years, i'm glad this coversation about excess SP can even happen.

    the bats situation should be interesting.  some upgrade opportunities would displace in-house talent.  that could lead to trade opportunities.  it's hard to tell where the team will go in that direction.

    for those that aim for the moon, aaron judge turned down a 7y/210m+ extension from the yanks before the season began...before...