Sep 11, 2013, 8:54 AM EST
Bob Nightengale of USA Today reports that the Yankees luxury tax bill for this year is going to be $29 million. Which is more than the Astros’ entire payroll. Which is special.
You can read his whole store for the politics and mechanics of the luxury tax. But the takeaway here is that, for as much grief as the Yankees are taking for wanting to get their payroll under $189 million next year, thereby avoiding the luxury tax, the economic incentive for them to do so is really freakin’ compelling. They’re paying a 50% tax rate every year they go over the luxury tax threshold now. Just one year beneath it and it resets to 17.5%.
That might make next year pretty ugly. But it’ll make the years beyond that a bit easier for Brian Cashman.
- Royals sign Edinson Volquez for two years, $20 million 10
- Rays, Padres, Nationals agree to 11-player trade 71
- Sergio Romo re-signs with the Giants for $15 million 13
- So, apparently we’re sweating the Matt Kemp physical now 45
- The United States will seek to normalize relations with Cuba 140
- Marlins complete Michael Morse deal: two years, $16 million 18
- Padres, Rays, Mariners discussing trade involving Wil Myers 36
- It is perfectly clear that A-Rod is the Yankees’ DH. At best. So there will be no drama, right? 37
- Baseball’s highest-ranking Hispanic woman employee sues for discrimination (163)
- The United States will seek to normalize relations with Cuba (140)
- Cubs, Red Sox, Dodgers, Padres, Rangers, and Astros interested in Phillies’ Cole Hamels (110)
- Done Deal: Yoenis Cespedes and two players traded to Detroit for Rick Porcello and a minor leaguer (105)
- Chase Headley signs a four-year deal with the Yankees worth at least $52 million. (95)