higher thresholds should lead to more willingness about the league’s top teams to spend. In collective bargaining talks before the lockout, the MLBPA proposed a $245MM threshold that would eliminate the escalating penalties for repeat payors,
according to Gabe Lacques and Bob Nightengale of USA Today.
The league, predictably, hasn’t been as keen on increasing penalty-free spending capacity. MLB’s first core economics proposal actually called for the first tax threshold to be reduced to $180MM, as
Ken Rosenthal and Evan Drellich of the Athletic reported in August. That came attached to a $100MM salary floor designed to incentivize spending among lower-payroll clubs, but the significantly lowered CBT thresholds always looked to be a non-starter for the union.
After the MLBPA rejected the $180MM possibility, the league offered to raise the tax thresholds above the $210MM level from 2021, albeit nowhere near the MLBPA’s target area. Shortly after the beginning of the lockout,
Drellich reported the league was willing to push the first tax marker up to $214MM in the early years of a possible CBA, maxing out at $220MM by the end of the deal.