SponsorUS Water Systems
LA Dodger Talk

CBT Threshold and Team Salaries

One day until the Winter Meetings, and I was trying to come up with something clever to say that has not already been speculated and discussed 100 times already. Since there has been a lot of speculation that the Dodgers have unlimited funds, I thought that I would look to see where all of the teams are in relationship to the CBT threshold of $206MM. This is a dynamic chart

By Jeff Dominique5 min readJump to 82 comments

One day until the Winter Meetings, and I was trying to come up with something clever to say that has not already been speculated and discussed 100 times already.  Since there has been a lot of speculation that the Dodgers have unlimited funds, I thought that I would look to see where all of the teams are in relationship to the CBT threshold of $206MM.  This is a dynamic chart and it will change hourly.  This chart is as of 12/6/18.

 CBT Salary
 Division  Team  Team  Division
 NL West  Dodgers  $       190,400,000
 Colorado  $       143,279,166
 Arizona  $       118,491,666
 San Francisco  $       164,252,523
 San Diego  $         84,703,333  $       701,126,688
 NL East  Atlanta  $       114,580,000
 Washington  $       188,572,709
 Philadelphia  $       129,575,000
 Mets  $       148,610,739
 Miami  $         81,179,762  $       662,518,210
 NL Central  Milwaukee  $       114,152,162
 Cubs  $       224,957,143
 St. Louis  $       153,668,483
 Pittsburgh  $         82,316,667
 Cincinnati  $       106,570,237  $       681,664,692
 AL East  Boston  $       239,996,667
 Yankees  $       177,825,000
 Tampa Bay  $         53,961,667
 Toronto  $       116,060,714
 Baltimore  $         93,600,000  $       681,444,048
 AL Central  Cleveland  $       119,758,333
 Minnesota  $         85,241,667
 Detroit  $         95,200,000
 Chicago  $         75,341,667
 Kansas City  $         91,908,333  $       467,450,000
 AL West  Houston  $       154,396,429
 Oakland  $         78,283,333
 Seattle  $       134,360,714
 Angels  $       139,477,381
 Texas  $       111,154,762  $       617,672,619
 $   3,811,876,257

59inarow is correct about the gargantuan amount of money in MLB.  Currently the estimated 2019 AAV salaries in MLB will exceed $3.8 Billion.  But it is all relative, and each team will spend what they feel is appropriate.  The current CBA does not limit the floor or ceiling for the salaries.  The only punitive action is for those teams that exceed the threshold.  There are no consequences for those teams that do not spend what the players union believes should be a minimum expended.  Currently there are two teams already in excess of the threshold; Boston at nearly $240MM and the Cubs at nearly $225MM.  Neither team is in a position to reduce their payroll below the threshold. There are three teams that are approaching the threshold; LAD at $190.4MM, Washington at $188.6MM, and NYY at $177.8MM.

 

All three teams do have some options if they want to take on a significant contract.  For the sake of this exercise, let’s assume that the contract is for Bryce Harper for an AAV of $32MM.  The Yankees are in the best position as they plan on trading Sonny Gray and his $9.1MM.  It will be for prospects as they would not be in a position to take on Harper’s salary and stay under the threshold without eliminating Gray.  There is no possible way that any team would be willing to pay $12.4MM for Didi Gregorius for half a season in his walk year.  So the best NYY can do is to trade Gray and reduce the obligation $168.7MM.  They would then be in a position to sign Harper or Machado and stay under the threshold.  But that would preclude them from signing replacements for J A Happ, Zach Britton, David Robertson, Neil Walker, and Lance Lynn.  Does NYY go after more pitching or Harper.  I am going with more pitching and staying under the CBT threshold.

 

The Nationals can try to trade Tanner Roark (estimated at $9.8MM) or Ryan Zimmerman ($16.67MM).  I have eliminated any thought that they would be willing to trade Anthony Rendon and his estimated salary of $17.6MM.  I also doubt that they would trade Roark since they still need another pitcher, and if they traded Roark they would need two.  They need another pitcher more than they need to sign Harper.  Right now, that #5 is Erick Fedde, and I do not think they are totally comfortable with that.  Even Lerner has said that they are saying good-bye to Harper.  I think the Corbin signing did that.  The Nats are quite comfortable going into the season with Soto, Eaton, Robles and Taylor as their OF.  They will find an inexpensive #5.

 

The Dodgers can move Puig, and one of Wood or Hill, and they could be in a position to sign Harper.  But they would not be able to acquire Kluber, and probably not Realmuto.  We have gone around and around as to what the Dodgers can do AND stay under the CBT threshold.  We can continue to disagree amongst ourselves whether we believe the Dodgers will exceed the CBT threshold.  It is irrelevant what we believe. Only the Dodgers know what they are willing to do.  Both LAD and NYY have said that they have no intentions of exceeding the threshold.  Will they?  We will learn in a few months.

 

Many teams look at the threshold as a salary cap.  It cannot be referred to as such as that would be in violation of the CBA.  But what should rankle the union more is the number of teams that are not spending.  Per the chart, there are 10 teams that have projected salaries of less than $100MM, with the Rays the least at around $54MM.  That makes a difference of about $186MM between the two extremes (Boston and Tampa Bay).  They both happen to be in the same division.  The Red Sox are now tapped without Kimbrel and Kelly.  The Union wants to know what these teams are doing with their revenue sharing.  Instead of going after teams that are reluctant to exceed the threshold and screaming collusion, maybe the Union should draw the line at the next CBA and require a salary floor.  If they do not exceed the floor, teams will lose draft picks as well as revenue sharing funds.

 

A couple of other interesting factoids about the CBT salaries.  If salaries dictated the WS winners as some seem to believe, then the NL is spending a lot of money for no reason.  They have a projected salary nearly $300MM more than the AL.  The NL West spends more on salaries than any other division, and the weak AL Central not surprisingly spends the least.

 

Yes, there is a lot of monopoly money in baseball, and some teams can afford more in salaries than others.  Houston has gone from being one of the bottom salaried teams to now being #4 with approximately $154.3MM projected with St. Louis right behind at $153.7MM.

 

There is still a lot of money to be spent, at least $600MM.  Who is going to spend it?  Is Bryce Harper going to get $300MM?  Who is going to spend it?  How much will Machado get and who is going to pay it.  Philly looks to get one of them, with Harper the favorite.  Machado says he will pay 3B for NYY.  But with his projected salary seemingly decreasing, there may be a few more teams in play.  Will he be willing to play 3B for other teams to get more teams bidding?  Are the Reds going to pony up for Keuchel?  Now that St. Louis has traded for Paul Goldschmidt, are they now going to go all in?  Will a team go three years for Happ or six for Kimbrel?  With the number of changes that have taken place thus far, I am guessing that next week should be fun.

 

Discussion (82)

Disagree, not disagreeable

Be civil — moderation is real. Links may need a moment of review.

  1. dodgerdennyDecember 10, 2018

    AC, your analysis of the situation gave me much to consider since my knowledge is driven more by the public sector and not for profits. Baseball is certainly neither of these although deeply involved with both.

    One of the ways that I feel that MLB could help grow the game for the future would be to pay considerably more in salaries and expenses to all of the players, coaches, staff and operating professionals at the minor league levels under the auspices of the organization. Better pay at the entry levels would, hopefully; encourage the better multi-sport athletes in high school or college to pursue baseball professionally rather than other options. This would be a real positive use of the revenue sharing $$$, IMO.

  2. Singing The BlueDecember 10, 2018

    AC, I’m new to this site so am asking who your son is, or is that something your prefer not to divulge?

  3. Always CompeteDecember 10, 2018

    It looks like Jose Leclerc just might be available for the right price. Texas has not said it had to be waaaaay above market. They are going to need quality soon to be MLB ready players, or players with loads of team control.

  4. Vegas DodgerDecember 10, 2018

    This might just be the offseason that Freidman puts his stamp on the team or it could be more tinkering around the edges which at this point would cause my head to throb or reach for an adult beverage.

  5. SoCalGrinchDecember 10, 2018

    Other than resigning our own free agents, recent history suggests the off season will be mostly “tinkering around the edges”.

    That is, until the front office pulls a rabbit off of the hat that none of us expected.

    For evidence of this, I offer one word – Kemp. First he was a Dodger, then he wasn’t, then he was. I dare say no one predicted either of those trades.

    All our speculation means nothing – though it provides a forum to analyze the teams strengths and weaknesses.

    Don’t get you blood pressure too high until you see the rabbit ears. I’m not sure we will see a rabbit this winter but …

  6. DodgerfanDecember 10, 2018

    You speak perfect words AC.No thank you for Bryce Harper or Manny Machado.

  7. Mark TimmonsDecember 10, 2018

    I want to thank everyone who contributes to this blog, I appreciate opinions and discenting opinions. It’s fun!

  8. DodgerfanDecember 10, 2018

    Mark May I thank you AC and DC for your contributions with your bloges. they are fun to read and think about during the off-season until the hot stove starts

  9. Vegas DodgerDecember 10, 2018

    Lee Smith and Harold Baines elected to Hall of Fame by Today’s Game Era Committee. Smith ok, he had a lot of saves but Baines?! In the Hall of Fame? The one in Cooperstown? That’s a travesty IMO.

  10. Mark TimmonsDecember 10, 2018

    So, tonight was the night we take our family to the Indianapolis Yuletide Celebration at Hilbert Circle Theater. We have dinner and then watch the show. Josh Kaufman was the MC. However, I was surprised and happy to see my Godson Max, and his parents at the same show. His father is a Major in the US Army and one of my closest friends. Two tours of duty. Thank you for your service John!

  11. Mark TimmonsDecember 10, 2018

    Dodgers Hire Jeff Kingston As Vice President And Assistant General Manager

  12. Always CompeteDecember 10, 2018

    LAD was not going to hire a new GM, but they did sign a new Vice President – Assistant GM, Jeff Kingston. Kingston was most recently from Seattle under the same position since 2009. Previously with San Diego.

More from Dodger Talk

Dodgers Food Trailer

I did this interview a couple of weeks ago with Chef Mike, who runs the Dodgers Food Trailer for the Great Lakes Loons. They are there for every home and road regular season and playoff game. They prepare three meals a day for approximately 50 people (players and coaches). Since games end late most evenings, they do not prepare breakfast. Many of their hotels have a complimentary breakfast anyway. However,…

By Mark Timmons · July 17, 202673

Meet LAD 2026 Draft Picks 1-12

3 picks were High School players (2 SS and 1 OF). There was a college OF, college catcher, college SS, and 10 college pitchers. Of all the talk for a need for a catcher, the only catcher the Dodgers selected was Luke Bard, son of LAD bullpen coach Josh Bard. Bard was a 4th year senior from Houston Christian University. He is not a prospect, so the Dodgers are still…

By Jeff Dominique · July 16, 202674

Interview with Paul Beachy – Team Bus Driver For The Great Lakes Loons (LA Dodgers Minor League Team)

It’s been a few days since I did this interview. We have evidently been working my son-in-law (the video guy) like a rented mule at US Water Systems. However, I am taking him to London with me in a few days, so maybe Watford will buy him a pint as a tip, but he’s a dang Red Sox fan, so there is that! I thought that it would be interesting…

By Mark Timmons · July 15, 202652

Thanks for Your Service: Chris Taylor

I was going to do this post when Chris announced he was retiring, then he changed his mind, but since the chances of him ever playing for the Dodgers again are slim and non-existent, I will go ahead with this post. He unretired, went on the IL, then decided to call it quits on May 24th. Taylor was born in Virginia Beach VA on August 29th, 1990. He attended Great…

By Michael "Bear" Norris · July 14, 202676