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Nine Teams Exceeded Luxury Tax Threshold In 2025

Major League Baseball has finalized its calculations of teams’ competitive balance tax payrolls for the 2025 season. As first reported by The Associated Press, nine teams surpassed the $241MM base threshold. In a separate post, The AP lists the finalized CBT numbers for all 30 teams.

The payments are as follows:

  • Dodgers: $169.4MM
  • Mets: $91.6MM
  • Yankees: $61.8MM
  • Phillies: $56.1MM
  • Blue Jays: $13.6MM
  • Padres: $7MM
  • Astros: $1.5MM
  • Red Sox: $1.5MM
  • Rangers: $190K

Teams pay escalating penalties for exceeding the threshold in consecutive seasons. The Dodgers, Mets, Yankees, Phillies and Rangers have all paid the tax in at least three straight years — subjecting them to the highest escalator fees. The Astros went over the line for the second straight season. The Blue Jays, Padres and Red Sox had gotten below in 2024 and are categorized as first-time payors.

This is the second straight year in which nine teams paid the CBT. The Braves, Giants and Cubs had gone over the line in ’24 but dipped below this year, which resets their status going into 2026. Atlanta’s active offseason puts them in position to go back into tax territory next year, when the base threshold climbs to $244MM. San Francisco and Chicago each have projected CBT numbers more than $40MM below that right now.

While public estimates from RosterResource and Cot’s Baseball Contracts offer an excellent approximation of teams’ payroll commitments, the official numbers are not available during the season. It’s not uncommon for rounding errors in those calculations to vary by a few million dollars. That generally isn’t a big deal but can matter for teams that are hovering very close to the tax line. Each of the Red Sox ($249MM payroll), Astros ($246MM) and Rangers ($241.38MM) were believed to have gone narrowly beyond the $241MM cutoff, but that wasn’t 100% established until this evening — particularly in the case of Texas.

The Dodgers ($417MM), Mets ($347MM), Yankees ($320MM), Phillies ($314MM) and Blue Jays ($286MM) all had payrolls above $281MM. That was the third tier of penalization and marked the point at which a team’s top draft pick is dropped by 10 spots. The Mets were the only of those five that didn’t make the playoffs. Their top pick drops from 17th to 27th. The Yankees, Philadelphia, Toronto and L.A. all have their first-round pick dropped to between 35th and 40th.

Teams that paid the CBT are entitled to the lowest level of compensation for losing free agents who declined a qualifying offer. They receive a draft choice after the fourth round for each qualified free agent who walks. They’re charged the heaviest penalty — their second- and fifth-highest picks in 2026 and $1MM from their ’27 international bonus pool — for signing a qualified free agent from another team.

San Diego and the Mets receive a pick after the fourth round for losing Dylan Cease and Edwin Díaz, respectively. Toronto (Bo Bichette), Houston (Framber Valdez) and Philadelphia (Ranger Suárez) would receive the same if their free agents sign elsewhere. The Dodgers surrendered their second- and fifth-round selections for Díaz. Toronto is slated to do the same for Cease, but if Bichette walks, they’d give up that compensatory pick instead and get their fifth-rounder back.

The Dodgers’ combined payroll and tax bill for the 2025 season lands north of $586MM. The two-time defending champions’ tax hit alone is higher than the payrolls of the bottom 12 teams in the league. There were 14 clubs that had a CBT number above $200MM. The Braves, Cubs, Giants, Angels, Diamondbacks and Mariners were the other six teams above the median. All but Seattle spent more than $200MM.

On the other end, the Marlins ($87MM) and White Sox ($92MM) were the two teams with payrolls below $100MM. The Rays ($103MM), Pirates ($109MM) and Athletics ($118MM) rounded out the bottom five — followed by the Guardians, Nationals, Twins, Brewers and Reds.

Overall, the league will collect just under $403MM in taxes. Teams must make the payments by January 21. The first $3.5MM will be used to fund player benefits. Half the remaining money goes to players’ retirement accounts, while the other half is used for revenue sharing distribution from MLB to teams.

Source: https://www.mlbtraderumors.com/2025/12/nine-teams-exceeded-luxury-tax-threshold-in-2025.html
 
Blue Jays Interested In Alex Bregman

Add the Blue Jays to the list of potential suitors for free agent Alex Bregman. Toronto officials have been in contact with Scott Boras, the third baseman’s agent, reports Ken Rosenthal of The Athletic. The Red Sox, Cubs, and Diamondbacks have also been connected to Bregman.

Toronto has already been a major player in free agency this offseason, though the additions have come on the pitching side. The club snagged one of the top starters on the market in right-hander Dylan Cease. They locked down reliever Tyler Rogers on a three-year deal. In a year with several intriguing arms arriving from overseas, the Blue Jays landed one of the highest-upside options in Cody Ponce. Toronto has been tied to some of the biggest bats on the market, including Kyle Tucker, Cody Bellinger, and Bo Bichette. Bregman now joins that esteemed group.

Boston is reportedly pushing for a Bregman reunion. The third baseman opted out of a three-year, $120MM deal with the club after one season. He had a strong campaign with the Red Sox, providing middle-of-the-order thump to go with steady glove work. Chicago is back in the mix after coming up short last year. The Cubs reportedly offered Bregman a four-year deal this past offseason, though the total value fell short of his agreement with the Red Sox. The Diamondbacks recently joined the race for Bregman. Arizona seems like a long shot to land the stud free agent, but the club does have a vacancy after trading Eugenio Suárez at the deadline.

Toronto’s current plan at third base seems to be a combination of Addison Barger, Ernie Clement, and Davis Schneider. Clement will be penciled in at second base with Bichette hitting the market. Barger is the top option for third base duties, at least against righties. Schneider could pick up second base reps against lefties, with Clement sliding to third. Infielders JoJo Parker and Arjun Nimmala are among Toronto’s top prospects, though they’re unlikely to contribute at the big-league level for a few more years.

The Blue Jays’ third basemen ranked 10th in OPS last season. Clement and Barger split the role fairly evenly, with Will Wagner and Isiah Kiner-Falefa occasionally mixing in. Barger emerged as a crucial cog in the middle of the lineup, launching 21 home runs in his first extended stint at the highest level. Clement bounced around the infield, seeing time at all four spots. He played in a career-high 157 games, providing league-average numbers at the plate. Clement also set a postseason record with 30 hits. Third base isn’t a position that seems like a glaring weakness, but a longer-term view of the roster makes Bregman a more sensible fit. George Springer and Daulton Varsho are both free agents after 2026. Their potential departures would open up outfield and DH opportunities for Barger, Schneider, and company.

While Clement and Barger are solid players, Toronto would have no issue reshuffling the lineup to make room for an addition like Bregman. The 31-year-old has a career 133 wRC+. After three straight seasons with at least 23 home runs, Bregman hit 18 in 114 games in his lone season in Boston. A quad strain cost him a month and a half, but he was on track to maintain his standard power numbers. Bregman was worth +3 Outs Above Average this past year. He’s now at +18 over the last five seasons.

The additions of Cease and Rogers, among others, pushed Toronto’s estimated payroll to roughly $272MM, per RosterResource. That’s already $14MM above the club’s 2025 mark. It’s well beyond the Blue Jays’ $217MM payroll from 2024. It’s a new level of spending for a squad that fell just short of bringing home a title this past year.

Photo courtesy of Brad Penner, Imagn Images

Source: https://www.mlbtraderumors.com/2025/12/blue-jays-interested-in-alex-bregman.html
 
Several Teams Interested In Yoán Moncada

Infielder Yoán Moncada is currently a free agent after playing out a one year, $5MM deal with the Angels. He was an above-average hitter in 84 games in 2025 but missed time due to right thumb and right knee injuries. According to Francys Romero of Beisbol FR, several teams have expressed early interest in signing Moncada, including the Angels, Pirates, White Sox, and Blue Jays.

The 30-year-old originally signed with the Red Sox out of Cuba for a $31.5MM bonus in February 2015. He made his debut late in 2016 before being traded to the White Sox as their key return for Chris Sale. Moncada had a 105 wRC+ in 231 plate appearances in 2017 but fell below average in his first full season in 2018. He broke out in 2019 with a .315/.367/.548 batting line in 559 PA, along with 25 home runs. Granted, the ball was juiced that year, but Moncada’s output was still 39% better than average by wRC+. The White Sox were confident enough to give him a five-year, $70MM extension in March 2020, which covered the 2020-24 seasons and contained a club option for 2025.

Moncada slumped during the COVID-shortened 2020 season, posting a 94 wRC+ while seeing a drop in power and spending two weeks on the injured list. He rebounded in 2021 with a line of .263/.375/.412 and a 120 wRC+. The power wasn’t quite back to his 2019 levels, though he looked like a more mature hitter overall, dropping his strikeout rate to 25.5% while posting a career-best 13.6% walk rate.

Unfortunately, Moncada has struggled with injuries and inconsistency ever since. From 2022-24, he batted .236/.291/.387 with an 88 wRC+ while playing in just 206 out of 486 possible games. In 2024, he spent most of the season on the 60-day IL with a left abductor strain, making just 45 plate appearances with a 118 wRC+. After the season, the club declined their $25MM club option on Moncada in lieu of a $5MM buyout, making him a free agent.

This year with the Angels, he had a 117 wRC+ in 289 PA over 84 games. His strikeout rate of 26.0% was high, while his 11.1% walk rate was better than average. His .214 ISO was his highest since his 2019 breakout season, as was his .448 slugging percentage. Although he is nominally a switch-hitter, most of his damage came as a lefty facing right-handed pitching. He posted 125 wRC+ in 262 PA against righties, but just a 37 wRC+ in 27 PA against southpaws. Meanwhile, both Defensive Runs Saved and Outs Above Average saw Moncada as a liability at third base. His -13 OAA was worst in the league among third baseman with at least 300 defensive innings.

Altogether, Moncada showed above average offense but was weighed down by injuries and newfound defensive struggles. As a free agent, he is more or less in the same position as last offseason, with a one-year deal being his most likely outcome. The current market has Alex Bregman and Eugenio Suarez as the top options at third base. Kazuma Okamoto is still available, with his posting window closing on January 4. The next-best options after that are utility players, so teams needing an everyday third baseman could look to Moncada as a low-cost flier.

Among the clubs with reported interest, the Angels might be the best fit. Anthony Rendon is expected to retire after an injury-riddled tenure in Los Angeles. After Moncada, Luis Rengifo got the most time at the hot corner in 2025, though he is a now a free agent. The club acquired infielder Vaughn Grissom from the Red Sox earlier this month, and he has not played third base in his big-league career. Another one-year deal with Moncada would fill the third-base vacancy and set Grissom up to compete for second base time, where the incumbent Christian Moore was unimpressive offensively in 2025.

Looking at the Pirates, the team traded Ke’Bryan Hayes to the Reds in July and saw Isiah Kiner-Falefa claimed by the Blue Jays in August. Jared Triolo played 260 1/3 innings at the hot corner, but he is more of a multi-positional player and did not hit as well as Moncada. The club is interested in signing Okamoto, but Moncada could be a fallback option for them.

The White Sox recently signed Munetaka Murakami to play first base and have Miguel Vargas as the projected starter at third. Moncada would be an offensive upgrade over Vargas if the club limits his exposure to left-handed pitching. Meanwhile, the Blue Jays are known to be interested in signing Bregman. Ernie Clement and Addison Barger are already on the roster if he signs elsewhere. Both are average hitters, while Clement is an excellent defender at third (11 DRS in 2025), so they are a more curious fit for Moncada.

Photo courtesy of Steven Bisig, Imagn Images

Source: https://www.mlbtraderumors.com/2025/12/several-teams-interested-in-yoan-moncada.html
 
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