Author Topic: Competitive Balance Tax  (Read 2417 times)

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Offline Natsinpwc

  • Posts: 11490
Re: Competitive Balance Tax
« Reply #50: March 05, 2018, 10:16:14 AM »
But it won't factor into the CBA's luxury tax threshold. The luxury tax is based off of AAV of deals and player benefits. I think it won't be hard for the team to get under the threshold next season (especially since it jumps up 9 Million to 206 Million) and re-set the penalties.
Not sure you understand. Any additional luxury "tax" they pay to MLB rescues their income (or increase a loss). If they can write that loss off against other businesses they save some federal and state taxes. Also any of their other profitable business will be paying less in federal taxes this year and in the future because of the new tax law. So they can absorb a few million more in MLB competitive balance tax if they really want to.