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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  • Dolorous Jon Lester 6 hours 37 min ago (view)

    It feels like you have no time to let players you know are good figure out how to get out of slumps. It's not ideal, and feels very much like it's not baseball.

     

  • crunch 16 hours 20 min ago (view)

    at least this HOU/OAK game has been great since the DET/PIT game has ended.  sigh.

     

  • crunch 16 hours 58 min ago (view)

    at least this DET/PIT game has been great.  no cubs til tuesday at the earliest...boo.

     

  • Arizona Phil 17 hours 32 min ago (view)

    jdrnym: A player being on the Restricted List for a full season makes that season not a qualified season toward minor league free-agency, so will Mark Zagunis (who otherwise would be eligible to be a minor league 6YFA for the first time post-2020) being on the Restricted List as the result of opting-out of the 2020 season (he was assigned to the Cubs MLB Club Player Pool in July) keep him from being a minor league 6YFA post-2020? If not, then Zagunis needs to opt back in even if he is no longer assigned to the Cubs MLB Club Player Pool. 

     

  • jdrnym 18 hours 52 min ago (view)

    Baseball America confirms that 2020 will be considered a "qualified season" for the purposes of determining minor league free agency.

    https://www.baseballamerica.com/stories/2020-milb-free-agents-eligible-for-free-agency-this-fall/

     

  • crunch 18 hours 52 min ago (view)

    "Cardinals' president of baseball operations John Mozeliak announced Friday that Ryan Helsley and Austin Dean are the two players that tested positive for COVID-19."

     

  • Cubster 19 hours 53 min ago (view)

    I presume they come back to Chicago for the weekend and travel to Cleveland on Tuesday.

    Saved from an August weekend in Stl. Plus, it might eliminate any road games vs Stl. They might do makeups during the 3 game series at Wrigley Mon 8-17 to Wed 8-19 (Thursday 8-20 is a scheduled off day for the Cubs but StL plays the Reds in StL at night) or the 4 game series against the Cardinals at Wrigley Friday 9-4 through Mon 9-7.

     

  • crunch 20 hours 30 min ago (view)

    i can't even imagine what it's like playing fantasy baseball this season.

     

  • Arizona Phil 21 hours 45 min ago (view)

    So the Cubs are off until Tuesday. 

     

  • Hagsag 22 hours 22 min ago (view)

    Make the Deadbirds forfeit all three games.

     

  • crunch 1 day 42 min ago (view)

    le sigh...

     

  • Arizona Phil 1 day 1 hour ago (view)

    Based upon the way MLB handled the Marlins positive tests and the Phillies only potential exposure, I wouldn't be surprised if all three of the Cubs-Cards games this weekend will ultimately be canceled. 

     

  • Arizona Phil 1 day 1 hour ago (view)

    Tonight's Cubs-Cardinals game postponed due to an additional Cards positive CoViD-19 test.

    The additional STL player who tested positive had apparently been out in public with the others who tested positive earlier this week when they were infected, so while the new positive test is not a surprise, the lag/delay in the player testing positive is probably a bit concerning/disappointing. 

     

  • crunch 1 day 8 hours ago (view)

    ...only because ESPN no longer shows australian rules football.

     

  • Charlie 1 day 16 hours ago (view)

    This is baseball.

    This is the sport we like.

     

  • crunch 1 day 18 hours ago (view)

    top 9th, 1 out, men on 1st/2nd...alec mills steps to the plate.

    they're down by 13 runs.  i want to end this, too.