Main League Baseball finalized its luxurious tax calculations for 2024. ESPN’s Jesse Rogers was first to report the record of payors, whereas Ronald Blum of the Related Press stories the main points. A report 9 groups surpassed the $237MM aggressive steadiness tax threshold. In a separate publish, The Related Press lists the finalized CBT numbers for all 30 groups.
The funds are as follows:
- Dodgers: $103MM
- Mets: $97.1MM
- Yankees: $62.5MM
- Phillies: $14.4MM
- Braves: $14MM
- Rangers: $10.8MM
- Astros: $6.5MM
- Giants: $2.4MM
- Cubs: $570K
Groups pay escalating penalties for exceeding the brink in consecutive seasons. The Dodgers, Mets, Yankees, and Phillies have all paid the tax in at the very least three straight years — subjecting them to the best escalator charges. Texas and Atlanta are second-time payors. Houston, San Francisco, and the Cubs didn’t exceed the brink in 2023 and are marked as first-time payors.
The Dodgers ($353MM), Mets ($348MM), and Yankees ($316MM) all had CBT numbers above $277MM, which marked the third tax bracket. All three groups will see their first-round decide within the 2025 draft dropped by 10 spots. Contemplating they every superior at the very least so far as the LCS and the Dodgers gained the World Collection, these golf equipment gained’t have any regrets about that penalty. Atlanta narrowly stayed under the $277MM threshold to keep away from any influence on their draft.
Groups that paid the CBT are entitled to the bottom degree of compensation for shedding free brokers who declined a qualifying provide. They obtain a draft alternative after the fourth spherical for every certified free agent who walks. They’re charged the heaviest penalty — their second- and fifth-highest picks in 2025 and $1MM from their ’26 worldwide bonus pool — for signing a certified free agent from one other staff.
The Mets (Juan Soto), Yankees (Max Fried), Giants (Willy Adames), and Astros (Christian Walker) have already signed or agreed to phrases with certified free brokers. The Mets (Luis Severino), Yankees (Soto), and Braves (Fried) have misplaced certified free brokers. Houston is more likely to see Alex Bregman stroll. The Mets (Pete Alonso, Sean Manaea) and Dodgers (Teoscar Hernández) nonetheless have unsigned certified free brokers of their very own.
The highest eight luxurious payors have been all clearly above the bottom threshold, whereas the three largest spenders blew past each surcharge marker. The one supply of CBT intrigue late within the season involved the Cubs and Blue Jays, each of whom have been hovering proper across the tax line.
When it grew to become clear that neither staff would make the playoffs, they every tried to dip under $237MM by shedding cash by way of waivers. The Cubs have been unsuccessful and landed round $239.9MM; Toronto dropped just under $234MM. The tax influence for the Cubs is negligible — a $570K invoice is lower than the price of one participant on a league minimal wage — however it locations a better penalty for signing certified free brokers and will incentivize them to remain below the brink in 2025 to reset their standing. Six of the 9 payors made the postseason. Texas, San Francisco, and Chicago have been the exceptions.
Final 12 months, a then-record eight groups surpassed the CBT threshold. The Padres are the one staff that was above the road in 2023 and acquired under it this 12 months. San Diego completed with an approximate $228MM mark that ranked eleventh within the majors — behind the 9 payors and the Blue Jays. The Purple Sox, Diamondbacks, Cardinals, and Angels have been the opposite groups above the median in payroll. On the opposite aspect of the equation, the 5 backside spenders have been as follows: Athletics ($84MM), Rays ($107MM), Tigers ($110MM), Marlins ($122MM), and Pirates ($123MM).
The groups that exceeded the brink have till January 21 to pay MLB. The primary $3.5MM shall be used to fund participant advantages. Half the remaining cash goes to gamers’ retirement accounts, whereas the opposite half is used for income sharing distribution from MLB to groups. Subsequent 12 months’s base threshold climbs to $241MM.
