Baseball for the Thinking Fan

Login | Register | Feedback

btf_logo
You are here > Home > Baseball Newsstand > Baseball Primer Newsblog > Discussion
Baseball Primer Newsblog
— The Best News Links from the Baseball Newsstand

Thursday, December 19, 2019

Red Sox, Cubs, Yankees reportedly must pay luxury tax bills for 2019

The final bills for those teams exceeding the Competitive Balance Tax (CBT)—known as the luxury tax—threshold for 2019 have arrived. According to documents obtained by the Associated Press, the Red Sox, Yankees, and Cubs are the only teams that will owe for this past season.

The AP reports that the Red Sox owe a team-record $13.4 million tax. The Cubs are next with a $7.6 million bill, and then the Yankees check-in with $6.7 million owed. The Red Sox this past season led MLB with a payroll of $228 million, but they managed just 84 wins and a third-place finish in the AL East. The Cubs also missed the postseason 2019, while the 103-win Yankees stand as the only taxed team to make the playoffs last season. The champion Nationals were tied for fourth with a luxury tax payroll of $205 million, but wound up just under the limit.

The CBT is levied on average-annual-value payrolls above a certain dollar figure—$206 million for 2019. A team over the tax for the first time has to pay a 20 percent fine on the overage. A team over the line for two years in a row must pay a 30 percent fine. And three or more years in a row entails a 50 percent tax on the overage. The CBT also includes additional surtaxes for exceeding the threshold by $20 million (12 percent); $40 million (42.5 percent); and repeating over $40 million (45 percent). A team that goes more than $40 million over also has its highest draft pick moved down 10 spots provided it isn’t picking in the top six.

Given all the discussion of how important the luxury tax has become, a review of the figures is of interest.

 

QLE Posted: December 19, 2019 at 01:12 AM | 1 comment(s) Login to Bookmark
  Tags: cubs, red sox, yankees

Reader Comments and Retorts

Go to end of page

Statements posted here are those of our readers and do not represent the BaseballThinkFactory. Names are provided by the poster and are not verified. We ask that posters follow our submission policy. Please report any inappropriate comments.

   1. Zonk Wants Justice for Carolyn Gombell Posted: December 19, 2019 at 11:08 AM (#5909872)
The Cubs would like to pay their tax using a combination of pounds of Tyler Chatwood flesh, gently used Brandon Morrow jeans, and Kris Bryant tears.

Where is the currency exchange desk?

You must be Registered and Logged In to post comments.

 

 

<< Back to main

News

All News | Prime News

Old-School Newsstand


BBTF Partner

Dynasty League Baseball

Support BBTF

donate

Thanks to
Vegas Watch
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogMLB owners sending latest plan to MLBPA that includes sliding pay scale for players
(72 - 9:36pm, May 28)
Last: Jeremy Renner App is Dead and I killed it

NewsblogEmpty Stadium Sports Will Be Really Weird
(4340 - 9:34pm, May 28)
Last: .

NewsblogBatting .400? A sub-1.00 ERA? Here are the MLB records that could be threatened in an 82-game season
(33 - 8:59pm, May 28)
Last: What did Billy Ripken have against ElRoy Face?

NewsblogHow Johnson, Pedro could have starred in same rotation
(10 - 8:55pm, May 28)
Last: What did Billy Ripken have against ElRoy Face?

NewsblogFormer Braves catcher Biff Pocoroba dies at 66
(6 - 7:47pm, May 28)
Last: Jarrod HypnerotomachiaPoliphili (TeddyF.Ballgame)

NewsblogESTEBAN LOAIZA'S WRONG TURN
(12 - 7:29pm, May 28)
Last: Tin Angel

NewsblogOT – NBA CoronaThread 2020
(3107 - 6:25pm, May 28)
Last: never forget: the pee tape is 57i66135

NewsblogInside Roy Halladay's struggle with pain, addiction
(12 - 5:28pm, May 28)
Last: Eric J can SABER all he wants to

NewsblogGriffey a Pirate? Chipper a Tiger? The MLB draft rule that changed history
(4 - 4:02pm, May 28)
Last: Bring Me the Head of Alfredo Griffin (Vlad)

NewsblogA's Tell Minor Leaguers They Won't Be Paid for the Remainder of the Season
(31 - 3:31pm, May 28)
Last: Jeremy Renner App is Dead and I killed it

NewsblogPrimer Dugout (and link of the day) 5-28-2020
(14 - 2:54pm, May 28)
Last: Mayor Blomberg

NewsblogPrimer Dugout (and link of the day) 5-27-2020
(24 - 7:13am, May 28)
Last: JJ1986

NewsblogGregg Jefferies complicated Mets’ failure looks different now
(78 - 7:37pm, May 27)
Last: Jay Z

Hall of MeritMost Meritorious Player: 1927 Ballot
(2 - 1:19pm, May 27)
Last: DL from MN

Hall of MeritMost Meritorious Player: 1927 Discussion
(7 - 1:12pm, May 27)
Last: DL from MN

-->

Page rendered in 0.2458 seconds
46 querie(s) executed