According to reports, the Phillies will officially pay $6.98 million in 2023 for exceeding MLB’s competitive balance tax. Associated Press.
Eight teams will have to pay CBT, also known as luxury tax.
The most severe fine to date was imposed on the Mets, who had to pay less than $101 million in fines, breaking the $43.6 million record set by the Dodgers in 2015.
A record eight teams exceeded the original tax threshold of $233 million.
• Mets: Over $100 million
• Padres: $39.7 million.
• Yankees: $32.4 million
• Dodgers: $19.4 million
• Phillies: $6.98 million
• Blue Jays: $5.5 million.
• Braves: $3.2 million
• Rangers: $1.8 million
As you can see, some financial penalties are very different from others. This is because there are four levels of penalties (more than $233 million, more than $253 million, more than $273 million, and more than $293 million), which are enhanced for repeat taxpayers. is. The Phillies earned about $256 million.
This is the second year in a row of tax overruns for the Phillies, Mets and Yankees, who pay 30% on overage fees instead of the 20% paid by debutant teams such as the Blue Jays, Braves and Rangers.
Like Texas, Atlanta, and Toronto, the Phillies’ tax bill was relatively low at less than $7 million. The four teams paid between $1.8 million and $6.98 million, which is essentially the cost of a decent veteran reliever.
A year ago, the Phil family’s tax bill was just under $2.9 million.
The Mets took the biggest hit above the $293 million tax threshold, resulting in a final CBT salary of $374.7 million. For amounts above his $60 million above, from $293 million he will also be paid a 60% surcharge on amounts up to $374 million.
In addition, the Mets’ 2024 first-round draft pick will be moved back 10 spots.
MLB will collect a total of just under $210 million from eight luxury taxpayers, with the money going to player benefits and individual player retirement accounts, with the other half distributed to eligible revenue-sharing teams.
The luxury tax threshold will increase annually during the term of the current collective bargaining agreement, which expires after 2026, by $237 million in 2024, $241 million in 2025, and $241 million in 2026. will be $244 million.
As currently constructed, the Phillies are just hitting the 2024 luxury tax threshold, although the exact numbers will be calculated at the end of the season. They are expected to add at least one more relief pitcher and a fourth outfielder this winter, and could receive even more money at the trade deadline if they have a promising position.
The Dodgers, Mets and Yankees are each projected to have payroll costs between $40 million and $50 million more than the Phillies.
