In a record-setting move, nine teams exceeded the $237MM competitive balance tax threshold for 2024, highlighting the continuing impact of revenue disparities in Major League Baseball.
Teams like the Dodgers, Mets, and Yankees face severe penalties due to repeated luxury tax payments, significantly impacting their draft picks despite their playoff successes.
The penalties for exceeding the CBT significantly affect how teams approach free agency, particularly with the added costs borne from signing qualified free agents.
With only a small margin separating Atlanta from exceeding the threshold, teams are engaging in strategic spending decisions directly tied to the luxury tax implications.
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