Dec 22, 2009, 11:05 AM EDT
The luxury tax is an arrangement by which teams [cough! -- the Yankees -- cough!] whose payroll exceeds a certain
figure determined each year are taxed on the excess amount. The tax is
paid to the league which then puts the money into its “industry-growth
fund.” I guess the industry as grown so it wouldn’t be appropriate to call it a slush fund or anything, but I’m not sure I’ve ever seen a breakdown of what actually happens to that dough.
Anyway, the Yankees have paid the tax every year since it was invented. In fact, they have paid $174 million of the tax’s $190 million in total collections since 2003. They are the sole team to pay it this year, getting rung up for $25.69 million. Put differently, their luxury tax is something like 70% of the Marlins total payroll.
Yet, despite the huge and disproportionate tax bill, they continue to prosper and don’t scream about tyranny and socialism and all of that. Not that I’m making a political statement or anything. That would be outside the scope of this blog, and I’d never ever go off on a non-baseball tangent, no sir.
- It certainly looks like Barry Bonds’ criminal conviction is going to be overturned 2
- VIDEO: Derek Jeter hits first home run at Yankee Stadium this season 4
- Ron Washington claims he resigned because he cheated on his wife 83
- No, baseball does not need to “announce a domestic violence policy ASAP” 51
- And That Happened: Wednesday’s scores and highlights 48
- Video: Rusney Castillo notches his first major league hit 7
- Michael Wacha cleared to return Saturday vs. Reds 2
- Marlins officially shut down Giancarlo Stanton for the season 6
- Chris Davis suspended 25 games for amphetamine use (92)
- Giancarlo Stanton diagnosed with multiple facial fractures and dental damage (91)
- Bud Selig can’t remember the last domestic violence incident in Major League Baseball (90)
- Ron Washington claims he resigned because he cheated on his wife (86)
- A couple of initial thoughts on the Chris Davis suspension (83)