For the second year in a row, the New York Mets have the highest projected payroll in MLB, according to Cot’s Baseball Contracts. As of March 30, the Mets are expected to spend over $340 million on their 40-man roster and associated CB Tax this season, which is only about $37 million less than their record-breaking payroll in 2023 ($377.08 million).
The Los Angeles Dodgers, who were known for their excessive spending in free agency this winter, are close behind the Mets, with their $325.40 million payroll resulting in a projected $72.64 million CB Tax bill. After spending over a billion dollars this offseason, the Dodgers were only saved by the huge deferrals included in superstar Shohei Ohtani‘s 10-year, $700 million contract, where Ohtani will only receive $2 million per year for the duration of his deal. The Dodgers will pay Ohtani the remaining $680 million owed on his contract from 2034 to 2043.
On the other hand, the Oakland Athletics have the lowest projected 40-man payroll this season at $81.47 million. This means that the Mets will pay more in CB Tax this season than the entire payroll of the Athletics' team.
Projected 40-man CB Tax Payrolls in 2024
All figures according to Cot’s Baseball Contracts as of March 30.
Nine MLB Teams Are Projected to Pay Competitive Balance Tax on Their 2024 Payrolls
The CBT threshold for 2024 is $237 million, as per the collective bargaining agreement between MLB and the MLB Players Association. Teams need to keep their annual payroll under that amount or be taxed on every dollar they go over, with penalties dependent on how many consecutive years each club has exceeded the threshold and by how much.
Teams pay a 20% tax on all overages in the first year, 30% in the second year, and 50% for three or more consecutive years. They are also charged an additional 12% for going $20-40 million over the threshold, 42.5% 0r 45% (depending on consecutive penalty years) for $40-60 million over, and 60% for more than $60 million over.
As of March 30, Cot’s Baseball Contracts projects nine MLB teams to owe CB Tax on their 40-man payrolls this season — the Mets, Dodgers, New York Yankees, Atlanta Braves, Houston Astros, Philadelphia Phillies, San Francisco Giants, Toronto Blue Jays, and Texas Rangers.
Because the Mets, Dodgers, and Yankees have spent more than $60 million in excess of the threshold, they will each be charged the highest 60% penalty on their overages in addition to the increased tax for having gone over the limit in consecutive years.
