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[polo007]

Is approximately 5 million what each Non-tax paying team gets from taxpaying teams? What determines that exact amount that each team would get under the CBT? I would appreciate it if someone can clarify this for me. Thanks in advance.

Competitive Balance Tax | Glossary | MLB.com

Competitive Balance Tax

Definition

Each year, clubs that exceed a predetermined payroll threshold are subject to a Competitive Balance Tax -- which is commonly referred to as a "luxury tax." Those who carry payrolls above that threshold are taxed on each dollar above the threshold, with the tax rate increasing based on the number of consecutive years a club has exceeded the threshold.

A team's Competitive Balance Tax figure is determined using the average annual value of each player's contract on the 40-man roster, plus any additional player benefits. Every team's final CBT figure is calculated at the end of each season. (Note: If a player signs a contract extension that doesn't kick in until a later season, his AAV for the purposes of the CBT doesn't change until the new deal begins.)

The following thresholds were put in place per the 2022-26 collective bargaining agreement:

2022: $230 million

2023: $233 million

2024: $237 million

2025: $241 million

2026: $244 million

A club that exceeds the Competitive Balance Tax threshold is subject to an increasing tax rate depending on how many consecutive years it has done so.

First year: 20 percent tax on all overages

Second consecutive year: 30 percent

Third consecutive year or more: 50 percent

If a club dips below the luxury tax threshold for a season, the penalty level is reset. So, a club that exceeds the threshold for two straight seasons but then drops below that level would be back at 20 percent the next time it exceeds the threshold.

There’s also a surcharge threshold for clubs that exceed the base threshold by $20 million or more.

$20 million to $40 million: 12 percent surcharge

$40 million to $60 million: 42.5 percent surcharge for first year; 45 percent for each consecutive year after that

$60 million or more: 60 percent surcharge

Clubs that are $40 million or more above the threshold shall have their highest selection in the next Rule 4 Draft moved back 10 places unless the pick falls in the top six. In that case, the team will have its second-highest selection moved back 10 places instead.

[polo007]

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[dagger]

So what is Vlad worth?

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[SharoneWright]

Drinks are on Devers!

[Schad]

So what is Vlad worth?

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Depends entirely when it's signed. 12 years, $330m (kicking in next year) wouldn't actually be a bad deal. You'd be buying out 9 years of free agency at an AAV around $30m, and it would cover his ages 24-35 seasons.

Entering his final season prior to FA? A lot more downside risk because you're trading two in-prime seasons on the deal for two where he's likely to be well past his best.

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[Duffman100]

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Damn was actually hoping for that to be a low key good signing for us.

[Parataxis]

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Am I having one of those Mandela effect things? Didn't Mattingly just sign on with the Jays?

[Duffman100]

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Am I having one of those Mandela effect things? Didn't Mattingly just sign on with the Jays?

https://www.sportsnet.ca/mlb/article/report-blue-jays-coach-mattingly-to-serve-as-adviser-for-nashville-group-pursuing-mlb-team/

Nightengale writes Mattingly will stay in his role with the Blue Jays while acting as an adviser for the Nashville Stars.

[polo007]

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[Cyrus]

So Correa back to twins pending a phyiscal:

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6 year 200 mill, with vesting options for 4 more years and 70 mill... 270 over 10 years... That's less than Devers got 330 mill or his deal with the giants/mets...

[dagger]

Trevor Story out 4-5 months with elbow surgery. Modified UCL. Sox hold on AL East basement solidified


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[polo007]

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Boston deferring $75M to Rafael Devers, paying through 2043 - The Associated Press

BOSTON (AP) — Rafael Devers has $75 million in deferred salaries in his new contract with the Boston Red Sox, who committed $331 million over 11 seasons to the third baseman but will not fully pay the money until 2043.

Boston on Wednesday finalized a 10-year contract worth $313.5 million that covers 2024-33 and follows a $17.5 million, one-year agreement reached on Jan. 3.

Devers’ long-term deal includes a $20 million signing bonus, of which $5 million is payable each February from 2023-26.

He gets salaries of $27.5 million a year from 2024-26, $31 million annually from 2027-30 and $29 million per season from 2031-33.

In each season of the long-term deal, $7.5 million will be deferred. The money will be payable 10 years after the season in which is is earned, half on Feb. 1 and half on Nov. 30.

Devers would receive a $2 million assignment bonus if traded, payable by the receiving team.

Devers was the AL’s starting All-Star third baseman each of the past two years. In 141 games last season, he batted .295 with 42 doubles, 27 home runs and 88 RBIs.

Boston hopes to bounce back after finishing last in the AL East at 78-84. The Red Sox won 92 games in 2021 and reached the AL Championship Series.