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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  • Arizona Phil 8 hours 17 min ago (view)

    RHP Kelvin Abreu (April 2019 IFA - Venezuela) had his contract voided and he has been released. He spent his entire pro career (four months) on the Restricted List.  

     

  • Charlie 12 hours 27 min ago (view)

    I didn't watch the game, but I see that Lester got knocked around despite a significant headwind from CF. That's a rare feat.

     

  • Arizona Phil 14 hours 41 sec ago (view)

    I think it's becoming increasingly likely that the Cubs will not exercise Lester's 2021 $25M option after next season (paying the $10M buy-out instead and direct the remaining $15M elsewhere). The 2021 $25M option automatically vests if Lester throws at least 400 IP over the course of 2019-20, but that isn't going to happen.

     

  • Arizona Phil 14 hours 21 min ago (view)

    It's the Polar Bear in an Arctic Snowstorm all white uniforms. Burn 'em! Bring back the unis from the Little League Classic. They actually looked sharp.  

     

  • Eric S 14 hours 26 min ago (view)

    Thru seven innings, Cubs have one hit (by Nick C, of course) - this after somehow winning yesterday’s game with a total of two hits. Clearly it’s time to fire Chili Davis again

     

  • Eric S 15 hours 13 min ago (view)

    Feel bad for the patrons at Wrigley this afternoon - seeing Strop in the fifth inning is a bad sign. At least the weather is nice

     

  • JustSayin' 17 hours 3 min ago (view)

    The buzz on Riley Thompson is that he did what many pitchers do, just way too blatantly.  The opposing manager asked the umpire to check Thompson's glove because he was "going there every time" and the ball was "snapping" when it came out of his hand.  It was a ten-day suspension.  That is supposed to cost you two starts but South Bend uses a six-man rotation so Thompson only missed one.  Kudos to Buddy Bailey and the SB staff for navigating Thompson's absence effectively, with a lot of pitchers being asked to change or expand their roles over these two weeks.

     

  • Arizona Phil 1 day 8 hours ago (view)

    South Bend RHSP Riley Thompson has been reinstated from his suspension. 

     

  • Arizona Phil 1 day 8 hours ago (view)

    The Cubs have released DSL Cubs #2 RHRPs Keiber Arredondo and Kleiber Carreno (both IFA signed post-2016 DSL season out of Venezuela). 

     

  • crunch 1 day 14 hours ago (view)

    cubs sweep!

     

  • Eric S 2 days 7 hours ago (view)

    Woo Hoo!!! Cubs win a crazy one!  KB with another late inning, game winning homer - good stuff!

     

  • crunch 2 days 7 hours ago (view)

    schwarb set the cubs team record for fastest to 100 by a cub a bit less than a week ago.  bryant would have won a couple MVP awards in a row the past couple years.

     

  • Eric S 2 days 7 hours ago (view)

    That was a good send by the butterman - great throw by Yaz Jr

    Try as he might, Eddie Vedder can’t find da butterman

    Thanks. I’ll show myself out now

     

  • Eric S 2 days 7 hours ago (view)

    200th home run of the season by KB probably would have set some kind of record too

     

  • crunch 2 days 7 hours ago (view)

    the inital graphic was KB #200, but i was like...hold on...

    it was technically true in the loosest sense of the phrase.

     

  • Eric S 2 days 7 hours ago (view)

    That would have been pretty cool if it had been KB’s 200th home run in less than five full seasons!