MLB salaries dropped four percent compared to the last full season of baseball, 2019. In reading the article, it seems like the top tier teams scaled back while the teams that were rebuilding didn’t pick up the slack. I also found this bit really interesting:

Checks for the competitive balance tax, as it is formally known, go to the commissioner’s office and are due by Jan. 21. The first $13 million of tax money is used to fund player benefits and 50% of the remainder will be used to fund player Individual Retirement Accounts. The other 50% of the remainder will be given to teams not over the tax threshold: $373,990 per club.

ESPN.com

It’s tough to see how this tax can make teams competitive when the distribution won’t cover the league minimum salary.

This makes me wonder if MLB might be correct in wanting a lower tax threshold of $180 million. They might collect a lot more tax money, which might make these payments to teams more meaningful. If teams see the level as a cap, that should help distribute talent more evenly between teams, even if it drives salaries down a bit.