Main League Baseball finalized its luxurious tax calculations for 2024. ESPN’s Jesse Rogers was first to report the checklist of payors, whereas Ronald Blum of the Related Press reviews the main points. A report 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 edge in consecutive seasons. The Dodgers, Mets, Yankees, and Phillies have all paid the tax in at the 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 edge 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 at the least so far as the LCS and the Dodgers received the World Sequence, these golf equipment received’t have any regrets about that penalty. Atlanta narrowly stayed under the $277MM threshold to keep away from any impression on their draft.
Groups that paid the CBT are entitled to the bottom stage of compensation for dropping free brokers who declined a qualifying supply. 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 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 have 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 have been hovering proper across the tax line.
When it grew to become clear that neither crew would make the playoffs, they every tried to dip under $237MM by shedding cash through waivers. The Cubs have been unsuccessful and landed round $239.9MM; Toronto dropped just under $234MM. The tax impression 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 edge in 2025 to reset their standing. Six of the 9 payors made the postseason. Texas, San Francisco, and Chicago have 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 Purple Sox, Diamondbacks, Cardinals, and Angels have been the opposite groups above the median in payroll. On the opposite facet 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 edge 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 yr’s base threshold climbs to $241MM.
