The 1 Factor That Could Limit Diamondbacks' Options at Trade Deadline

The MLB Trade Deadline is rapidly approaching, just a mere days away on August 3. The Arizona Diamondbacks are one of the many teams who do not have an extremely evident Deadline approach, though GM Mike Hazen has stated his preference to buy, if possible.

Arizona has never shied away from making big moves when possible. Owner Ken Kendrick has regularly invested — when pertinent — high dollar amounts in bolstering the roster. The Diamondbacks' 2026 payroll is the highest it's ever been.

And in that reality lies a bit of a challenge for Hazen this Deadline. The challenge, by name, is the Competitve Balance Tax, or "Luxury" Tax.

What is the Competitive Balance Tax?

Oct 27, 2025; Los Angeles, California, USA; Major League Baseball commissioner Rob Manfred before game three of the 2025 MLB World Series between the Toronto Blue Jays and Los Angeles Dodgers at Dodger Stadium. Mandatory Credit: Kirby Lee-Imagn Images | IMAGN IMAGES via Reuters Connect

The Competitive Balance Tax presents a payroll threshold determined ahead of each season. This year's CBT threshold is $244 million. The Diamondbacks are around $6-7 million under that number this year with a franchise-record payroll.

Teams pay a 20% tax on all dollars exceeding that threshold number. That increases to 30% and then 50% should said team remain over the threshold for two and three consecutive seasons.

If a team goes $20-40 million over, they pay an additional 12.5%. $40-60 million ups that to 42.5% and penalizes their draft selection by 10 spots. $60-plus million over turns into 60%, all of this goes on top of the 20% or more overage charges for simply passing the $244 million by a single dollar.

According to Arizona Sports 98.7 insider John Gambadoro, the Diamondbacks will not go over the threshold this year. Which, of course, changes the way the club can approach the Deadline to a degree.

"...because of a record payroll the Diamondbacks are only 6-7 million UNDER the penalty! The Diamondbacks, like the Suns not going into the second apron, will absolutely not go over the luxury tax. It would cost them somewhere around $30 million to go over and not qualify for the money the 8-9 luxury tax teams are paying with redistribution," Gambadoro wrote in his post on X/Twitter.

Ok let's cut to the chase. If you are expecting the Diamondbacks to be big buyers at the deadline and go get a bat, starting pitcher and closer you will be extremely disappointed. They will absolutely rely more on the quality players coming back from injury like Justin Martinez,…
— John Gambadoro (@Gambo987) July 29, 2026

Naturally, this report was met with some concern by Diamondbacks fans. But this limitation doesn't stop the Diamondbacks from being buyers, nor will it in any way prevent them from improving their roster in a concrete manner. Here's why:

Why CBT limit won't prevent Diamondbacks from buying

Arizona Diamondbacks general manager Mike Hazen during spring training workouts at Salt River Fields at Talking Stick near Scottsdale on Feb. 19, 2024. | USA TODAY Network via Reuters Connect

It's valid to be somewhat nervous at the prospect of relying entirely on players returning from injury to provide a boost to a Diamondbacks club that needs both offensive and pitching help. But that isn't the entire picture.

Hazen, when possible, prefers to trade for players who are young and controllable in the first place. That means players who are in pre-arb or arbitration, and making much less than an established veteran star. There are times where those types of stars or expensive veteran rentals can be a wise move, but they aren't the only way to add talent to the roster.

For example, the Diamondbacks desperately needed relief help in 2024. Instead of targeting a big-name closer, they opted to trade for left-hander A.J. Puk, who was making just $1.8 million that season, and less than half of that post-Deadline.

It's also important to note that teams are only responsible for paying the remainder of a player's salary, and the total year's contract number does not count against the CBT — only the amount for which the acquiring team is responsible.

There's also the possibility of Hazen finding ways to dump salary from the current roster, or getting an opposing club to eat some of a player's salary prior to a deal — for an upped prospect cost, of course.

The point is, the Diamondbacks having only about $6-7 million to add in payroll is not the limitation it might seem. What it will do is force the D-backs to look for controllable players without household names, or get creative with their current salary committments. It does not, in any way, mean the Diamondbacks do not plan to add at the Deadline, as Gambadoro also noted.

Yes. I expect they will add! Just not big name high salaried players. Will have to be cost effective as to not go over the luxury tax.
— John Gambadoro (@Gambo987) July 30, 2026

The Diamondbacks are not likely to stand pat and refuse to add players simply because of this threshold. Just don't expect a player like Tarik Skubal to wear a Diamondbacks jersey this season. Low-cost, high-upside additions are very much still on the table.

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