answersLogoWhite

0

There is no salary cap in MLB. There is something called a 'luxary tax'. This is a 'tax' on the amount of salary over a threshold as decided by the labor agreement between the players and management. For 2008, this threshold is $155,000,000. Any team whose total salaries exceed this threshold will have to pay a 'tax' on the amount over the threshold. This tax is 22.5% for teams that have gone over the threshold for the first time, 30% for teams that have gone over the threshold for the second time, and 40% for teams that are over for the third time or more. The money accumulated from luxary taxes is placed in a fund and divided among small market teams.

User Avatar

Wiki User

16y ago

Still curious? Ask our experts.

Chat with our AI personalities

MaxineMaxine
I respect you enough to keep it real.
Chat with Maxine
BeauBeau
You're doing better than you think!
Chat with Beau
CoachCoach
Success isn't just about winning—it's about vision, patience, and playing the long game.
Chat with Coach

Add your answer:

Earn +20 pts
Q: What is the Major League Baseball salary cap for 2008?
Write your answer...
Submit
Still have questions?
magnify glass
imp