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SF Giants reset luxury tax penalties, dip under CBT threshold in 2025

While the SF Giants missed the playoffs this year, they did achieve one goal. They came in below the $241 million Competitive Balance Tax (CBT) threshold for 2025, thereby resetting the penalties.

SF Giants reset luxury tax penalties, dip under CBT threshold in 2025

The Giants had conveyed a desire to dip under the CBT threshold this season after crossing it last year. According to Cot's, they committed $250.8 million against the luxury tax last year, surpassing the CBT threshold of $237 million.

The penalties for surpassing the CBT threshold vary depending on the number of consecutive years doing it, and the amount by which they surpass that threshold.