In fact, their significant financial burdens demonstrate the importance of local revenues in Major League Baseball. This is based on the notion the $3 billion loss in revenues is split evenly across the 30 major league ball clubs. Current financial constraints, which include Competitive Balance Tax penalties, will likely prohibit the Yankees from successfully achieving each of these lofty objectives. Major League Baseball’s collective bargaining agreement outlines strict penalties for violations of the Competitive Balance Tax. $210 million is the Yankees’ magic number this offseason, which also happens to be the 2021 Base Tax Threshold.

Source: Forbes November 23, 2020 12:00 UTC