The Toronto Blue Jays signed right-hander Dylan Cease to a seven-year deal worth $210 million last week in an effort to give themselves one of the deepest starting rotations in baseball.

As long as everyone is healthy, he'll pair with Kevin Gausman, Trey Yesavage, Jose Berrios and Shane Bieber in the rotation.

And while his signing is exciting and makes the Blue Jays even better in 2026, it does come with some financial penalties.

How the CBT factors in

This is a rather convoluted topic, but the basic premise is this. While it doesn't have a salary cap, Major League Baseball has tried to create competitive financial balance by making it disadvantageous to just out-spend your opponents.

The competitive balance tax threshold changes each season, and teams are penalized for going above and beyond that threshold. If you keep doing it, you are punished further.

As a result of the Cease signing, the Jays are set to cross the CBT for the second consecutive season, and they'll continue to obliterate the threshold if they sign Bo Bichette or Kyle Tucker, as they are reportedly interested in both.

Per MLBTradeRumors:

In any case, the Jays are clearly going to pay the tax in 2026, and this will push them beyond the $264MM first surcharge tier. They’re into CBT territory for a second consecutive season, meaning they’re taxed at a 30% rate for their first $20MM in overages. They’ll pay a 42% tax on spending between $264MM and $284MM, 75% for spending between $284MM and $304MM, and a 90% rate on any further spending.

Most fans don't care about the financial impact of payroll on ownership groups, they just want to see a good product on the field. That's certainly fair, but it should be noted that Jays ownership deserves to be praised for delivering that on-field product at the expense of their own profitability. Not every group does that.

What's next

It seems as if the Jays will just keep adding, with Bichette, a reliever or a marquee outfielder coming next. 

If they are looking to trade anyone away in an effort to save some dollars, Jose Berrios is the most likely candidate. He's owned $66 million over the next three years, though Toronto likely won't be able to shed the entire salary. If he's traded away, they'd still likely have to backfill his position in the rotation, taking on additional salary there.

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