Although trade season got off to an early start this year, we typically view July 1 as the unofficial kickoff to the player swap meet. Trade rumors will be swirling for the next month. Regardless of who the Cubs may target in trade, they will try to avoid going over the luxury tax cap. This provides an upper limit on the average annual value (AAV) of players the Cubs will look to acquire.
As of today that limit is $23 million. By the trade deadline, however, it will rise to $32.7 million.
The luxury tax, technically called the Competitive Balance Tax (CBT), levies monetary penalties for exceeding a specific payroll limit.