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 small print. A document 9 groups surpassed the $237MM aggressive steadiness tax threshold. In a separate put up, 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 no less than 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 choose within the 2025 draft dropped by 10 spots. Contemplating they every superior no less than so far as the LCS and the Dodgers received the World Collection, these golf equipment received’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 dropping 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 professional free agent from one other crew.
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 prone 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 had been all clearly above the bottom threshold, whereas the three greatest 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 had been hovering proper across the tax line.
When it turned clear that neither crew would make the playoffs, they every tried to dip under $237MM by shedding cash by way of waivers. The Cubs had been unsuccessful and landed round $239.9MM; Toronto dropped slightly below $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 — nevertheless 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 had been the exceptions.
Final yr, a then-record eight groups surpassed the CBT threshold. The Padres are the one crew that was above the road in 2023 and received under it this yr. San Diego completed with an approximate $228MM mark that ranked eleventh within the majors — behind the 9 payors and the Blue Jays. The Crimson Sox, Diamondbacks, Cardinals, and Angels had been the opposite groups above the median in payroll. On the opposite aspect of the equation, the 5 backside spenders had 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 might 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 yr’s base threshold climbs to $241MM.