The original news story that the Phillies will be one of eight MLB teams to pay a $7 million fine due to the luxury tax ran on NBC Sports Philadelphia.
The Associated Press reports that the Phillies’ 2023 Competitive Balance Tax overpayment was $6.98 million.
Frequently known as the luxury tax, the CBT will be payable by eight teams.
The 2015 Dodgers set the previous record with a penalty of $43.6 million; the Mets will pay just about $101 million, the harshest punishment ever.
For the first time ever, eight teams were able to cross the $233 million tax threshold:
Over $100 million
Price tag: $39.7 million
The Yankees have $32.4 million.
- Dozers: $19.4 million
Salary for Phillies: $6.98 million
- The Blue Jays: $5.5 million
To the Braves: $3.2 million
- $1.8 million for the Rockies
Some of the monetary fines are really different from the others, as you can see. For taxpayers who have paid their fair share four times, the penalties are progressively harsher: over $233 million, over $253 million, over $273 million, and over $293 million. Nearly $256 million was the final tally for the Phillies.
The Phillies, Mets, and Yankees pay 30% on their overages instead of the 20% paid by the Blue Jays, Braves, and Rangers, who are first-timers, for the second year in a row.
Less than $7 million was the Phillies’ tax burden, which was lower than that of Atlanta, Toronto, and Texas. The price tag for a respectable veteran reliever ranged from $1.8 million to $6.98 million, and all four clubs chipped in.
Just around $2.9 million was the Phils’ tax a year ago.
With a final CBT payroll of $374.7 million, the Mets were the team that took the biggest financial blow after surpassing the maximum tax threshold of $293 million. Additionally, they are subject to a surcharge of 60% of each dollar between $293 million and that $374 million, for finishing more than $60 million above.
Furthermore, ten positions will be repositioned in the 2024 draft to affect the Mets’ first-round selection.
The eight luxury tax payers contributed slightly under $210 million to MLB, which will go into player benefits and retirement accounts, with half of the money going to revenue-sharing teams who qualify.
The present Collective Bargaining Agreement raises the luxury tax threshold annually until its expiration in 2026. The amounts for 2024, 2025, and 2026 are $237 million, $241 million, and $244 million, respectively.
Although the precise numbers are determined at the end of the season, the Phillies, in their current form, are poised to cross the luxury tax threshold for 2024. Despite this, they intend to add a fourth outfielder and another reliever this winter, and they may be able to borrow money during the trade deadline if their situation improves.
The Phillies’ expected payroll is $40–$50 million lower than the Mets’, Yankees’, and Dodgers’.
Wayne Probert is a senior reporter at Zobuz, covering state and national politics, and he is a grantee with the Pulitzer Center on Crisis Reporting. Before joining Zobuz, he worked as a freelance journalist in Kentucky, having been published by dozens of outlets including NPR, the Center for Media.
