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Yankees hit with $18.9 million luxury tax bill

Dec 14, 2012, 8:19 PM EDT

stack of money

According to the Associated Press, the Yankees will pay a luxury tax to MLB for the 10th consecutive year.

The Yankees finished with a $222.5 million payroll for the purposes of the tax, well above the $178 million threshold. They were charged at 42.5 percent of the overage, so they’ll owe $18.9 million to MLB. No other team will pay a luxury tax for their 2012 payroll.

This year’s fee is up from the $13.9 million tax paid by the Yankees last year. The club has racked up a luxury tax bill of $224.2 million over the past decade, but the streak may not continue for much longer. The Yankees are currently trying to get their payroll under the new $189 million luxury tax threshold beginning in 2014, which is a big reason why general manager Brian Cashman has tried to hand out one-year deals this offseason. Ichiro Suzuki‘s new two-year, $13 million deal is an exception, though they only went there because he received multi-year offers elsewhere.

The Red Sox paid the luxury tax in 2010 and 2011, but they fell just $47,177 short of the threshold this year. August’s mega-trade with the Dodgers gave them just enough breathing room.

  1. cur68 - Dec 14, 2012 at 8:21 PM

    For once I feel a smidgen of sympathy for The Empire. Some of that dough will go to Jeff Loria. That sucks donkey ballz.

  2. proudlycanadian - Dec 14, 2012 at 8:55 PM

    The Yankees are behaving a lot like a small market team this off season. They have a too much money tied up in Arod and Tex. The Red Sox also seem to have got luxury tax religion. Following the salary dump, they are spending money, but are not going beyond 3 years.

  3. paul621 - Dec 14, 2012 at 9:04 PM

    Can you explain why a one-year deal would be better for the luxury tax issue? Isn’t it a year-by-year thing?

    • proudlycanadian - Dec 14, 2012 at 9:16 PM

      They want to get below the tax level in 2014. Thus the 1 year deals. Expect to see several low cost prospects make the team in 2014.

      • paul621 - Dec 14, 2012 at 10:26 PM

        Ah yes, it does say 2014, doesn’t it? Reading comprehension is overrated anyway. (And thanks!)

  4. phillyphannn83 - Dec 14, 2012 at 10:02 PM

    Pales in comparison to what the Dodgers will pay for 2013

  5. BigBeachBall - Dec 14, 2012 at 10:04 PM

    Easy money.


  6. granted42 - Dec 16, 2012 at 12:21 AM

    In other news, I drop a penny the other day. Didn’t feel the need to pick it up.

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