An increase to the luxury tax could make a huge difference for a team like the Phillies, who have said they'd exceed it for the right opportunity at the right point of their winning curve but have never done so.
Obviously, the sides are far apart. That's an average difference of $27.4 million per year between the proposals. The MLBPA feels that teams are using the luxury tax as a salary cap, which is hard to argue in most cases.
Penalties increase for repeat offenders, and had the Yankees exceeded it last season, they'd have paid 50 percent on every dollar over the CBT compared to 20 percent for a team exceeding it for the first time. By staying under in 2021, they reset that process and would be considered a first-time offender again in 2022.
An increase to the luxury tax could make a huge difference for a team like the Phillies, who have said they'd exceed it for the right opportunity at the right point of their winning curve but have never done so. Even the $10 million increase the league proposed, to $220 million, would make a sizable difference for the Phils. It would allow them to spend about $10-15 million more on their bullpen if they go the veteran route. With so few legitimate free-agent center field options, they could fill that spot via trade. The top two names -- Pittsburgh's Bryan Reynolds and Baltimore's Cedric Mullins -- are at the beginning of their careers and not earning huge salaries yet.
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