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 7 min ago (view)

    K-DUB: For the first time ever the AZL (now the ACL) is being operated / supervised from outside Arizona, and so there has been some confusion on the ground. A lot of last-minute planning. Lots of TBA / TBD, both within the individual organizations and within the league itself. 

     

  • Arizona Phil 1 hour 13 min ago (view)

    K-DUB: It's just a procedural move to open up slots on the 180-man Domestic Reserve List.

    Any player who was placed on the 60-day IL on Minor League Opening Day (5/3) or placed on the 7-day IL on Minor League Opening Day (5/3) and then subsequently was transferred to the 60-day IL is eligible to be reinstated a week from tomorrow (7/2).

    As for the type of injuries sustained by the guys who are on the 60-day IL, I would rather not say. I will leave it to the individual player and/or to the Cubs to divulge specific injury information as it relates to a particulart player.

     

  • K Dub 4 hours 26 min ago (view)

    Can't wait for ACL games to get started on the 28th! (Really wish they'd change the name of the league, though. Bad injury vibes...)

     

  • K Dub 4 hours 28 min ago (view)

    PHIL: Are you able to provide any clarifying info on the nature of Kohl Franklin's injury/rehab? I saw you moved him from the 7-day to the 60-day IL. Was that just a procedural move because enough time has passed or is that a sign that he's out for the season? Also, of the guys on the 60-day IL, can you clarify who is definitely out for the season/having surgery and those who might return?

    Thanks!

     

  • Eric S 10 hours 3 min ago (view)

    Great stuff, Charlie - Thanks!

     

  • Arizona Phil 1 day 3 hours ago (view)

    The Cubs have purchased the contract of 25-year old 6'5 260 RHP Adam Heidenfelder from Gary (American Association) and he has been assigned to the ACL Cubs.  

     

  • Hagsag 1 day 13 hours ago (view)

    Does anyone know what type of injury Amaya has?

     

  • Hagsag 1 day 13 hours ago (view)

    I can not believe what a good 3b he has been playing.

     

  • Wrigley Rat 1 day 19 hours ago (view)

    Robert Stock was claimed off waivers by the Mets.

     

  • crunch 1 day 21 hours ago (view)

    HR in the 8th.  dope.

     

  • crunch 1 day 23 hours ago (view)

    he's back out in the field in the top 3rd...must be okay, but he sure doesn't look confidently healthy.  *shrug*  off-day tomorrow...

     

  • crunch 1 day 23 hours ago (view)

    p.wisdom seems to have injured his right leg/knee swinging a bat...

     

  • crunch 2 days 7 min ago (view)

    “It did not feel good to take Javy out of the game,” Ross said. “I never feel comfortable doing that at all. That's a pit in my stomach and it was in my stomach the entire game.”

    ...

    “I blame it on myself. I lost the count of the outs,” Báez said. “We talked about it. We're on the same page. I'll be there tomorrow to help the team.”

     

  • First.Pitch.120 2 days 1 hour ago (view)

    The thing that gets me is that she cheated with the guy providing religous-based pre-marital counseling. Hmmm... this guy is abusing his (quasi-)professional couseling position to pursue an intimate relationship; forgot the parts of the Bible about lying, cheating, & doing dirty by the 2016 WS MVP; and clearly has very conflicted feelings on the marriage construct... yep, I'm blowing up multiple people's lives to ride-or-die with THAT guy. 

     

  • Hagsag 2 days 2 hours ago (view)

    I am with my hero Zo.

     

  • crunch 2 days 4 hours ago (view)

    whole zobrist thing got fleshed out (no pun) in public now...

    https://www.nbcsports.com/chicago/cubs/cubs-ben-zo...