The 2023 competitive balance tax (CBT) figures have been revealed, and the New York Mets are making history with a staggering $100.8 million CBT bill, setting a new record, according to the Associated Press. This surpasses the previous record of $43.6 million paid by the Los Angeles Dodgers in 2015. The Mets’ substantial tax bill is based on their record-setting $374.4 million CBT payroll, as calculated by MLB.
The Mets managed to reduce their salary obligations by approximately $18 million through deadline trades involving players like Mark Canha, Max Scherzer, and Justin Verlander, which also saved them $8.4 million in CBT payments. Notably, a total of eight teams have paid CBT this season, marking a new record. The previous record was held by six CBT payers in 2016 and 2022. Here’s a breakdown of the 2023 CBT bills:
| 1 | New York Mets | $100.8 million |
| 2 | San Diego Padres | $39.7 million |
| 3 | New York Yankees | $32.4 million |
| 4 | Los Angeles Dodgers | $19.4 million |
| 5 | Philadelphia Phillies | $7.0 million |
| 6 | Toronto Blue Jays | $5.5 million |
| 7 | Atlanta Braves | $3.2 million |
| 8 | Texas Rangers | $1.8 million |
In the 2023 season, the Mets, Padres, and Yankees failed to secure playoff berths. However, the other five teams reached the postseason, with the Phillies advancing to the Championship Series and the Rangers ultimately clinching the World Series title. Together, these eight clubs have accumulated a collective CBT bill of $209.8 million, shattering the previous record set last year at $75.8 million.
Thanks to their late-season efforts to shed salary, the Los Angeles Angels narrowly remained below the $233 million CBT threshold, with a difference of only $28,654. This amount is roughly equivalent to eight days’ worth of the minimum salary. Staying under the CBT threshold grants the Angels a compensation draft pick before the third round, rather than after the fourth round, for losing Shohei Ohtani to free agency—a significant 70-pick difference.
CBT payrolls are determined by calculating the average annual value of player contracts, along with additional expenses such as each team’s contributions to player benefits and the pre-arbitration bonus pool. Deferred payments, like Ohtani’s, are adjusted to their present-day value for CBT calculations. Looking ahead, the 2024 CBT threshold is set to rise to $237 million.
CBT payments are required to be submitted to the commissioner’s office by January 21. Of the total CBT pool, the first $3.5 million is allocated to player benefits, with 50% of the remaining funds directed towards player pensions. The remaining 50% is redistributed to non-CBT paying clubs that meet specific local revenue criteria.