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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  • Tom is a Ted Cruz look alike.

    Hagsag 1 min 14 sec ago view
  • Bob Nightengale‏ @BNightengale

    Cubs owner Tom Ricketts on why the Cubs didn't spend more money this offseason on the free-agent market: "Pretty easy. We don’t have any more.''

    ---

    hahahaha...no.

    that said, it's a strong team...can't complain too much, though they're playing very loose and fast with the patchwork pen "fixes."

    crunch 31 min 16 sec ago view
  • let's hope it goes better than the 5th or 6th time someone has "fixed" jason heyward's swing.

    crunch 34 min ago view
  • Interesting, this appears to the year of mechanical fixes in the staff, Quintana's toe point and new confidence in his changeup, Hamel's fixes, Chatwood's double pump, wondering if other fixes are in store from the new pitching regime. 

    Bob N. 58 min 4 sec ago view
  • That I am sure is an under statement.

    Hagsag 3 hours 49 min ago view
  • I've never really thought about Theo's politics. But I assume it's not the politics of Joe Ricketts.

    Charlie 3 hours 58 min ago view
  • I only spend baseball money on MLB.tv and tickets when the Cubs come to town (away games). So, like you, there's very little way for me to cut back on spending without just changing team loyalty. I'm still irked.

    Baseball is such a silly thing to care about, though. And they keep presenting ethical roadblocks to that whimsy.

    Charlie 3 hours 59 min ago view
  • m.moosetacos returns to the brewers for 1/10m

    crunch 21 hours 46 min ago view
  • I saw in Bleacher Report that Miguel Amaya is in camp. Picture of him with the Red Baron.

    Hagsag 23 hours 49 min ago view
  • Charlie, Crunch; yep...gotta wonder how much Theo chafes working for these folks...

    Mike Wellman 1 day 3 hours ago view
  • "Montgomery has been limited to long toss early in camp due to shoulder stiffness. Cubs pitching coach Tommy Hottovy said the southpaw could resume throwing bullpens in two or three days."

    also, j.tazawa isn't expected until monday because of visa issues...

    crunch 1 day 16 hours ago view
  • add the leaked joe ricketts racist-and-xenophobic-beyond-all-hell emails to the mix and you got a hell of an off-season.  it's bigger news than the 100 nickle and dime contracts they added, anyway.

    many (most) people will overlook this, but a chunk of the ricketts family not only talks the talk of their socially immoral beliefs (imo), they put money and labor behind pushing it...and it didn't just start this offseason.

    crunch 1 day 21 hours ago view
  • With Russell's press conference and the Cubs deal with Sinclair both coming near the end of a very slow offseason, I'm having a very hard time getting excited for spring training. Curious what other's think about these issues going forward? I really would like none of my money going to Sinclari. Russell's continued non-admission of specific acts is par for the course but still undercuts his statements about being accountable. Do you all find this issues obstacles to enjoying baseball, too?

    Charlie 1 day 22 hours ago view
  • Brailyn Marquez and Yovanny Cruz were the two best Cubs pitching prospects at Extended Spring Training last year. Cruz throws a mid-90's two-seamer and a hard-slider and probably projects as a reliever at the higher levels, unless he can find a reliable off-speed pitch. 

    Arizona Phil 2 days 6 hours ago view
  • erich081: Dakota Mekkes is in a similar position as James Norwood this time last year, meaning he is Rule 5 Draft eligible after the season so adding him to the 40 could happen at any time, especially if the Cubs need a bullpen arm and Mekkes is pitching well at AAA Iowa.  

    Arizona Phil 2 days 6 hours ago view
  • PHIL: What’s your impressions of Yovanny Cruz? I’ve read his breaking ball is devastating. Also, is Luke Reynolds out your way? Do you think he has the goods to be a successful MLB player?

    The E-Man 2 days 16 hours ago view