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.
- Report: Two agents rumbled in the parking lot at the Winter Meetings 30
- Mets sign 40-year-old Bartolo Colon for two years, $20 million 38
- MLB rules committee decides to eliminate collisions at home plate 63
- Mariners sign Corey Hart to incentive-laden deal 28
- David Price would not consider an extension with the Mariners if he’s traded there 35
- Robinson Cano agrees to $240 million deal with Mariners (260)
- Report: Mariners willing to offer Robinson Cano a 10-year, $240 million deal (143)
- Report: Yankees have agreed to a three-year deal with Carlos Beltran (125)
- Brett Gardner is drawing “significant” trade interest (113)
- Managers, GMs to meet today to discuss the abolition of home plate collisions (113)