[DC 86]

Per Cot’s Baseball Contracts, The Padres are currently at $228,985,000 v. a CBT of $230,000,000.  That is why they are trying to deal Eric Hosmer.  They need some wiggle room to allow them to pursue trade options during the season.  

Note:  the calculation for the CBT includes player benefits and a variety of other charges.


Note2: Since SD exceeded the CBT in 2021, they will pay a repeater penalty if they go over this year.

Thanks, Giants. I had taken OF's $214 million figure at face value. Besides the benefits that you mentioned the CBT also calculates a player's salary for tax purposes differently than actual salary, which is why a player's CBT tax is re-calculated when he's traded, i.e. AAV on remaining contract changes the tax number even though his actual contract is unchanged.

Interestingly, Sportrac states that the Padres luxury tax payroll is $266 million in their "Luxury Tax Tracker", well over the threshold. Cot's refers to "projected CB tax" payroll so perhaps that accounts for the discrepancy.

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Eddie D. had the luxury of operating without a salary cap all through the Montana years.

MLB doesn't have a salary cap either. However the owners have employed a brilliant public relations campaign to convince fans that going over the CBT threshold is a terrible thing and that they should cheer their billionaire owners for treating the CBT line as a de facto cap.

[DC 86]

Per Cot’s Baseball Contracts, The Padres are currently at $228,985,000 v. a CBT of $230,000,000.  That is why they are trying to deal Eric Hosmer.  They need some wiggle room to allow them to pursue trade options during the season.  

Note:  the calculation for the CBT includes player benefits and a variety of other charges.


Note2: Since SD exceeded the CBT in 2021, they will pay a repeater penalty if they go over this year.

Thanks, Giants. I had taken OF's $214 million figure at face value. Besides the benefits that you mentioned the CBT also calculates a player's salary for tax purposes differently than actual salary, which is why a player's CBT tax is re-calculated when he's traded, i.e. AAV on remaining contract changes the tax number even though his actual contract is unchanged.

Interestingly, Sportrac states that the Padres luxury tax payroll is $266 million in their "Luxury Tax Tracker", well over the threshold. Cot's refers to "projected CB tax" payroll so perhaps that accounts for the discrepancy.

---

Eddie D. had the luxury of operating without a salary cap all through the Montana years.

MLB doesn't have a salary cap either. However the owners have employed a brilliant public relations campaign to convince fans that going over the CBT threshold is a terrible thing and that they should cheer their billionaire owners for treating the CBT line as a de facto cap.