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.
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- David Ortiz is more likely to be boned in Hall of Fame voting for being a DH than for PED stuff 124
- And That Happened: Wednesday’s scores and highlights 73
- The Marlins are going to change everything except their biggest problem this offseason 53
- Drooling over Miguel Sano’s incredible numbers through 50 career games 35
- Matt Williams puts up another strong performance in his quest to get himself fired 105
- Settling the Scores: Tuesday’s results 81
- Yankees reveal Mark Teixeira’s shin injury is “more than we thought” 16
- Sarah Palin sticks up for Curt Schilling, tells ESPN to “stick to sports” (266)
- David Ortiz is more likely to be boned in Hall of Fame voting for being a DH than for PED stuff (125)
- Matt Williams puts up another strong performance in his quest to get himself fired (105)
- Why Mike Mussina keeps getting hosed in the Hall of Fame voting (89)
- And That Happened: Thursday’s scores and highlights (87)