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Writer's pictureKyle Wolf

MLB Announces Record Breaking Luxury Tax Bill

Photo by Getty Images

Major League Baseball announced yesterday that they have finalized the luxury tax calculations for the 2023 baseball season. After calculations, their are eight ball clubs who are over the Competitive Balance Tax threshold and will owe their respective cost. The biggest difference between this year and others? Well, this season comes in at a record breaking $209.8 million total bill, per Ronald Blum of the Associated Press.

 

List of the eight teams and their respective bill for surpassing at least the $233MM base CBT threshold:


  • Mets: $100,781,932

  • Padres: $39.7MM

  • Yankees: $32.4MM

  • Dodgers: $19.4MM

  • Phillies: $6.98MM

  • Blue Jays: $5.5MM

  • Braves: $3.2MM

  • Rangers: $1.8MM

 

The (x) amount of money spent mentioned above, totaling to $209.8 million, will now be distributed between funding player benefits ($3.5M), funding individual player retirement accounts ($103.15M), and distribution to the teams who are among them who have grown their (non-media) local revenue over a pre-determined number of years ($103.15M). Stating that the lower market teams will receive their share of the $103.15 million.


This comes at no shock as Major League Baseball is seeing an increase in player contracts. Teams are spending more and more as the years go on, something that we have already seen jump this offseason. Many fans are upset with the spending of bigger market teams, calling for a salary cap, however, seeing the amount going to smaller market teams is putting pressure on their owners to spend more as they will start 2024 already profitable.

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