Sep 11, 2013, 8:54 AM EDT
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.
- Kris Medlen leaves game with right forearm strain 16
- Cardinals sign Cuban middle infielder Aledmys Diaz to a four-year major league contract 48
- Cardinals and Matt Carpenter agree to a six-year, $52 million extension 10
- Jet Blue Park is absolutely incredible 59
- Gary Nolan one of many careers saved by Dr. Frank Jobe 17