Meb Faber is speaking at Basis Northwest
This should be fun
Basis Northwest registration is open.
Discounts available for wealth managers. Just reply to this message.
⚾️ 🔱 Post-conf (evening of May 29, 2026) Mariners game? Fill out this form
FYI: The Tax-Aware Long/Short Working Group will meet on Day 2 of Basis Northwest.
I’m pleased to say that Meb Faber will speak at Basis Northwest.
Wes Gray and I were recently on The Meb Faber Show.
MLB tax
Meb’s business is based in Los Angeles, so you’d think he’s a Dodgers fan.
I can’t remember how I know this, but he’s actually a Rockies fan.
That’s admirable.
The MLB has a thing called the Competitive Balance Tax (“luxury tax”) that’s sort of interesting. Here’s how it works:
Each year, clubs that exceed a predetermined payroll threshold are taxed on each dollar above it ($244 million for 2026).
A team’s CBT figure uses the average annual value of each player’s contract on the 40-man roster, plus player benefits.
The rates escalate based on consecutive years over the threshold:
1st year over: 20%
2nd consecutive year: 30%
3rd+ consecutive years: 50%
There’s an additional surcharge for teams that blow past the CBT:
Above $40-$60 million: 42.5% surcharge in the first year and 45% in subsequent years, and their highest draft selection moved back 10 spots.
My Mariners and Meb’s Rockies are nowhere near paying the CBT, but Meb’s other team, LAD, is paying the max since they’ve broken through 3+ times.
If you’re curious, the money goes to cover internal costs, partly funds player retirement accounts, and then gets distributed to teams that did not exceed the threshold.
There are many details, but that’s the gist.
Glad to have Meb on board for Basis Northwest 2026.
⚾️ 🔱 Post-conf (evening of May 29, 2026) Mariners game? Fill out this form
See you in Seattle in May (no promises… but average temp is 68 F)
Happy Thurs.