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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  • bradsbeard 57 min 56 sec ago (view)

    Since the deal isn't official, I wonder if the Cubs will wait until camp opens to finalize the deal and then put him on the 60 day IL as soon as it's available (assuming it's a major league deal). That doesn't really make sense in light of their luxury tax maneuvering though. If he's gonna miss a third of the season they'd probably only offer a minor league deal I guess. 

     

  • Arizona Phil 4 hours 1 min ago (view)

    Cory Abbott, Ben Hecht, Ryan Lawlor, and Brailyn Marquez were in a separate group on Field #3, so they may be prepping for NRIs to MLB Spring Training.   

     

  • Arizona Phil 4 hours 1 min ago (view)

    And Max Bain threw (long toss) at Instructs this morning, too. 

     

  • Arizona Phil 4 hours 1 min ago (view)

    I can positively confirm that Jerrick Suiter (1B-OF selected by Cubs from Pirates in Minor League Phase of last month';s Rule 5 Draft) is indeed being converted to a RHP. I saw him throw long-toss this morning at Instructs. 

     

  • Arizona Phil 4 hours 1 min ago (view)

    The Cubs have purchased the contract of LHP Adam Choplick from Southern Maryland (Atlantic League) and he has been assigned to AA Tennessee.

    Choplick was the 14th round draft pick of the Texas Rangers out of the U. of Oklahoma in 2015, and he was released by the Rangers at the end of Spring Training 2019 (never got higher than AA). 

    I saw Choplick throw (long-toss) at Instructs this morning and he is one huge dude (6'9 250+). 

     

  • crunch 5 hours 7 min ago (view)

    the entire cubs offseason has been "wow, this guy was good 2-3 years ago, but didn't play or sucked in recent past."

    houston finished using their trash can and the cubs are rooting around in it looking for players.

    speaking of...it's taken MLB longer to figure out bryant's service time complaint than the entire astros cheating scandal.

     

  • crunch 6 hours 44 min ago (view)

    "Chicago Cubs selected the contract of LHP Adam Choplick from Southern Maryland Blue Crabs."

    okay.  sure.  congrats and good luck.

    https://www.baseball-reference.com/register/player...

     

  • Charlie 9 hours 29 min ago (view)

    Good for Nick. Good luck to him and the Reds improving his defense. That park should very much play to his offense.

    Interest in Gennett is strange. If you are going to pick up a bench infielder at this point, shouldn't it be someone with SS chops?

     

  • crunch 10 hours 30 min ago (view)

    nick castellanos to the reds, 4/64m...opt out after 1 year.

    meanwhile, on the cubs front...

    "Bruce Levine of 670 The Score reports that the Cubs continue to have interest in free agent Scooter Gennett. "

    wtf...

     

  • Sonicwind75 14 hours 51 min ago (view)

    There seemed to be a least an tacit understanding between ownership and fans during the rebuild that we as fans should support the organization when it was intentionally underspending and tanking. When it was time to be competitive, you know when the greatest core of Cubs players in my lifetime are in their prime, ownership would make the most of that window. That doesn't appear to be the case with the team shedding around $40 million in salary. 

     

  • crunch 1 day 59 min ago (view)

    in all honesty, the team is spending a healthy amount that i only jokingly complain about...but...it was not just fans talking about the extra perks the new revenue streams and tv contract would open.  it was ownership and front office at points in the past bringing it up.

     

  • George Altman 1 day 2 hours ago (view)

    What's pretty obvious is that the Cubs 2020 salary budget is $208m AAV.  Whatever Theo/Jed can field with that number (existing players, trades, and/or signings). They could generate $100m from Marquee, concerts, Wrigleyville, etc and it's NOT going to translate into more $$$ for players.  Very sad, frustrating, and maddening. 

     

  • crunch 1 day 6 hours ago (view)

    maybe if the cubs can squeeze a 5th in-season concert at wrigley they can sign addison russell.

     

  • Charlie 1 day 6 hours ago (view)

    Morosi reporting that the Reds are favorites for Castellanos. Seems like a good direction for them if they can deal with his defense in LF. They look to have the best sarting rotation in the division (or close to it) as things stand. If they can squeeze more offense out of the OF and skate by with their bullpen, they could hang reasonably close to the Cards-Brewers-Cubs pack. I'll be curious to see how much money they throw at him if they do sign him. Being younger has to get him more money than Ozuna, right?

     

  • Charlie 1 day 10 hours ago (view)

    Sure would be nice to rehab a player and then have them stick around and help out the team. Fingers crossed for Souza.

     

  • Arizona Phil 1 day 12 hours ago (view)

    BRADSBEARD: Unfortunately the video doesn't show how his knee looked the day after the workout, whether he can run and take BP two days in a row, if he needs to take pain meds before or after he does physical activity, and/or if he has to have his knee drained every couple of weeks.