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The Yankees get a hefty luxury tax bill

Dec 22, 2009, 11:05 AM EST

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. 

  1. Rudy Guilliani - Dec 22, 2009 at 11:12 AM

    When your stadium is subsidized with 1.2 BILLION in taxpayer money, it does free up the payroll just a tad.

  2. aleskel - Dec 22, 2009 at 11:15 AM

    can’t we just call it the Yankee Tax now?

  3. yankeefaned - Dec 22, 2009 at 11:16 AM

    You yankee haters kill me.
    Long live the old convict and his two idiot sons!

  4. John_Michael - Dec 22, 2009 at 11:19 AM

    Yea, this is outrageous! They shouldn’t pay players fair market value while other teams can’t afford the same level of talent. It’s not fair! The owners should demonstrate more financial restraint and cut payroll. That saved money can go to the owners. They’re the victims in all of this. Without a salary cap, they have to pay all of these astronomical salaries.

  5. jim44XX - Dec 22, 2009 at 11:23 AM

    Hey craig,
    You’re a lawyer, why don’t you tell the boys and girls about Mr. Steinbrenner and how he was convicted of multiple felonies for illegal campaign donations to President Nixon?
    And then, maybe you can tell the tale of how President Reagan slipped in a pardon for George?
    And then, all the boys and girls can not only believe in THE AMERICAN JUSTICE SYSTEM, but we can all have a Merry Xmas as well.
    Thanks…

  6. aleskel - Dec 22, 2009 at 11:29 AM

    You know, Ollie North is currently walking the earth a free man. And he committed treason. Really, actual treason!

  7. GimmeSomeSteel - Dec 22, 2009 at 11:33 AM

    The younger Steinbrenners may not be the sharpest tools in the shed, but they did have the sense to shut up and let Cashman do his job last year. Hank wasn’t nearly the time bomb everyone expected.

  8. bexleybay - Dec 22, 2009 at 12:26 PM

    The Golden Rule:
    He who has the gold makes the playoffs. The Yankee buy playoffs.

  9. EaglesFan05 - Dec 22, 2009 at 12:49 PM

    A more right leaning blogger on NBC. You now have an edge over Mike Florio.

  10. Craig Calcaterra - Dec 22, 2009 at 12:58 PM

    You may have misread my tone, EaglesFan. I’m not aligned with any political party (no group of people has a monopoly on wisdom) but I tend to lean left when it comes to taxation issues. Not that I have a monopoly on wisdom when it comes to such things either . . .

  11. Dug - Dec 22, 2009 at 1:26 PM

    You do know that Mr. North did what a soldier is expected to do. He fell on a sword for his president. In actual real world terms and principles…..yes, I know that is hard for some to understand…. he was hero. He stood up in public and took it like a man. He (here is the sports reference to comply with blog)did not run off to hide like the little bitch Tiger Woods. Oliver North also publicly invited the most notorious terrorist, Abu Nidal. He said in a Senate hearing:
    I WOULD BE GLAD TO MEET ABU NIDAL ON
    EQUAL TERMS ANYWHERE IN THE WORLD BUT I AM
    UNWILLING TO HAVE HIM OR HIS OPERATIVES MEET MY
    WIFE AND CHILDREN ON HIS TERMS.
    Not too many of us would be willing to that. Some of us (another sports reference)can’t even stand up admit steroid use, eve when the proof is so visible, and pretend everyone is stupid by using terms such as….Flax seed oil, not going to talk about the past, my English is so not too good, the cream…..
    And this post comes to you from a proud liberal Democrat. Try to wrap your brain around that. I just defended a conservative.

  12. Dug - Dec 22, 2009 at 1:33 PM

    above post:
    I sometimes type way too fast and leave out words. In order the sentences should read…
    He was A hero.
    …..invited the most notorious terrorist, Abu Nidal, TO MEET HIM LIKE A MAN…..
    …..can’t even stand up AND admit steroid use…….
    …..eveN when the proof is so visible……
    My apologies for the typos and left out words.

  13. smokehouse - Dec 22, 2009 at 1:37 PM

    I guess Jim4XX forgot the corrupt Clinton pardons and the dropping by the Obama Attorney General of the Philadelphia gangsters at a Philly polling building. Moron!

  14. TigerS Boy ToY - Dec 22, 2009 at 1:43 PM

    YOU NEED A ATTITUDE ADJUSTMENT, AS A YANKEE FAN I WILL GLADLY HELP TUNE YOU UP UNTIL YOU COME ON BOARD

  15. TigerS Boy ToY - Dec 22, 2009 at 1:47 PM

    DID YOU TAKE YOUR MEDICATION THIS MORNING, IF NOT, YOU SHOULD.
    THIS FELLA HAS LOST A FEW SCREWS…….

  16. TigerS Boy ToY - Dec 22, 2009 at 1:49 PM

    THAT IS THE LEAST OF YOU WORRIES MY FRIEND,,,,,,,,

  17. TigerS Boy ToY - Dec 22, 2009 at 1:57 PM

    YEAH AND SO WHAT…….
    WE WON THE WORLD SERIES AND NOW WE WILL PAY THE BILL.
    I WILL NOT APOLOGIZE FOR THIS, SORRY.
    IF YOU WANT TO CRY CALL THE TEAM YOU ROOT FOR, PITTSBURG
    AND ASK THEM WHATS UP WITHH THE POOR MANAGEMENT OF THE TEAM
    AND ALSO ASK HOW MUCH MONEY THE OWNER POCKETED, START WITH THAT
    AND I WILL HAVE A FEW MORE FOLLOW UP QUESTIONS BECAUSE YOU PROBABLY
    MIS-REMEMBER – YOU LIKE THAT WORD HUH –
    IT SHOULD BE REQUIRED YOU STATE THE TEAM YOU ROOT FOR WHEN POSTING, THIS WAY WE WILL KNOW WHO THE FRAUDS ARE.

  18. Dug - Dec 22, 2009 at 3:40 PM

    I fail to see where your argument about my screws being missing addresses a single point I made. Ad hominem attacks are usually full of air, as is the case in this one. Your moniker says all I need to know about you.

  19. TimberLee - Dec 22, 2009 at 3:54 PM

    Why do you call the tax “disproportional”? Isn’t it determined by the amount of the payroll? It’s a proportion of the amount spent, like most sales taxes; this one just has a bigger basic exemption than most.

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