Oct 11, 2023; Philadelphia, Pennsylvania, USA; A view of the Phillies logo painted on the field before game three of the NLDS for the 2023 MLB playoffs between the Philadelphia Phillies and the Atlanta Braves at Citizens Bank Park. Mandatory Credit: Bill Streicher-USA TODAY Sports
Phillies to pay $10 million penalty regarding the MLB luxury tax
Phillies to pay $7 million penalty as one of eight teams over MLB luxury tax originally appeared on NBC Sports Philadelphia
The Phillies officially owe $6.98 million for exceeding MLB’s Competitive Balance Tax in 2023, according to the Associated Press.
Eight teams will have to pay the CBT, often referred to as the luxury tax.
The stiffest penalty ever went to the Mets, who have to pay a shade under $101 million, shattering the previous record of $43.6 million by the 2015 Dodgers.
Eight teams, the most ever, surpassed the initial $233 million tax threshold:
• Mets: $100.8M over
• Padres: $39.7M
• Yankees: $32.4M
• Dodgers: $19.4M
• Phillies: $6.98M
• Blue Jays: $5.5M
• Braves: $3.2M
• Rangers: $1.8M
As you can see, a few of the financial penalties are far unlike the others. This is because there are four tiers of penalties (over $233M, over $253M, over $273M and over $293M) and they stiffen for repeat taxpayers. The Phillies finished around $256 million.
It was the second straight year over the tax for the Phillies, Mets and Yankees, who pay 30% on their overages rather than the 20% paid by the first-timers — the Blue Jays, Braves and Rangers.
Like Texas, Atlanta and Toronto, the Phillies had a relatively low tax bill of less than $7 million. The four teams paid between $1.8M and $6.98M, essentially the cost of a decent veteran reliever.
A year ago, the Phils’ tax was just under $2.9 million.
The Mets were hit hardest after exceeding the highest tax threshold of $293 million, finishing with a final CBT payroll of $374.7 million. For finishing more than $60 million above, they also pay a surcharge of 60% of every dollar between $293 million and that $374.M figure.
Additionally, the Mets’ first-round pick in the 2024 draft will be moved back 10 spots.
In total, MLB collected just under $210 million from its eight luxury tax payers, money that will be used to fund player benefits and individual player retirement accounts with the other half being distributed to eligible revenue-sharing teams.
The luxury tax threshold increases during each year of the current Collective Bargaining Agreement, which expires after 2026. It is $237 million in 2024, $241 million in 2025 and $244 million in 2026.
The Phillies as presently constructed are right at the luxury tax threshold for 2024, though the exact figures are calculated at season’s end. They still figure to add at least one more reliever and a fourth outfielder this winter and could take on more money at the trade deadline if they’re in a promising position.
The Dodgers, Mets and Yankees each have projected payrolls $40-50 million higher than the Phillies.
Eastern Michigan defensive back Korey Hernandez started a brawl after he ran up and sucker punched South Alabama defensive back Jamarrien Burt in the head.
The incident occurred after the Jaguars completed their 59-10 rout of the Eagles in the 68 Ventures Bowl on Saturday. As South Alabama was singing its alma mater in front of its home fans and the band at Hancock Whitney Stadium, Hernandez ran in from out of the frame and hit Burt from behind.
On Sunday, Eastern Michigan athletic director Scott Wetherbee addressed the situation in a statement.
