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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  • Cubster 1 hour 53 min ago (view)

    MLBTR has an update on the latest owner's revision proposal. 

     

  • Cubster 4 hours 7 min ago (view)

    'we have a donald trump problem, but he may be a highly advanced and dangerous symptom rather than the actual disease.'

    Surely true, dear Crunch. Trump has emboldened the ugly fact that America's cruel underbelly is still racism and police brutality that forwards that original sin. 

    America NEEDS its HEROES.

     

  • Cubster 4 hours 17 min ago (view)

    if he does die by "suicide", I would blame Bill Barr and look into a real conspiracy.

     

  • Cubster 4 hours 19 min ago (view)

    welcome to an unwelcome June 1st.

     

  • Hagsag 5 hours 13 min ago (view)

    November 3, vote!

     

  • George Altman 12 hours 36 min ago (view)

    Yes, many players are millionaires too. However, a good percentage of MLB Owners are billionaires. If there's no MLB in 2020 that's on 30 owners, not the players no matter how the Press spins things. 

     

  • George Altman 12 hours 41 min ago (view)

    Well said, Crunch. #Resistance 

     

  • crunch 12 hours 50 min ago (view)

    i'm not a fan of this administration.  i'm not a fan of someone holding office who's rise to political prominence involved insisiting, with proof he clamed, that the current elected president at the time was not a citizen of the United States.

    we watched as state after state was slowly "won over" by promises of keeping out muslims and hispanics as the most important issue that could help elevate the state of our country.

     

  • BobbyD 14 hours 30 min ago (view)

    Crunch, I'm looking at you. You dominate this site, you never don't comment. Say something meaningful now this country is effed if our current pussy is reelected. Personally I would love tomorrow's headline to be he died an agonizing death. It's time we bring this motherfucket down. 

     

  • BobbyD 17 hours 1 min ago (view)

    So the Minneapolis cop who murdered George Floyd is on suicide watch. Gosh, I sure hope that pathetic piece of shit doesn't take his own life. How can MAGA be true if pigs like this fuck die? Think of the white people!!!

     

  • crunch 17 hours 10 min ago (view)

    "Jon Heyman of MLB Network reports that there is "no evidence of progress yet" in talks between MLB and the MLBPA and, thus, "no realistic hope" of reaching a deal by the "soft" June 1 deadline.

    Heyman adds, though, that the deadline "was soft for a reason" and the "hope remains to start (the) season (during the) July 4 weekend." In order for that to happen and for spring training 2.0 to start as hoped on June 10, June 5-9 appears to be the likeliest window for a deal to get done"

     

  • crunch 1 day 19 hours ago (view)

    don't worry, i'm sure even though he was spared from cuts there's some hardship he's being tortured with that he has to unfairly overcome.  #coreystrong #onthecross #yolo #swag #kony2012

     

  • crunch 1 day 19 hours ago (view)

    there's no way a system like that or something similar to that would work.

    "oh hi." - green bay packers

    *shoves out of way*

    like i said, there's no way that would work.

     

  • Hagsag 1 day 22 hours ago (view)

    Corey Black still has a job.

     

  • Charlie 1 day 22 hours ago (view)

    I am ready for MLB owners to give it a f***ing rest. I don't have any outrage to spare on them.

    If they can't afford this crisis, maybe they can surrender franchise rights to the players, grounds crew, concession employees, etc., and MLB teams can be employee owned.

     

  • Dolorous Jon Lester 2 days 2 hours ago (view)

    Couldn't have said it better myself, unfortunately.