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The Yankees to pay $29 million in luxury tax

Sep 11, 2013, 8:54 AM EDT

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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.

  1. proudlycanadian - Sep 11, 2013 at 9:17 AM

    Personally, I am looking forward to watching the Yankees in 2014. Who will be on the team? A-Rod? Jeter? Cano? Not Mo! It will be a very interesting transition year.

  2. kcrobert10 - Sep 11, 2013 at 10:04 AM

    They are paying for the extremely bad idea of giving guys in the 30’s long term highly lucrative deals. I’m not goingto feel bad for them and there ungodly amount of world championships.

  3. aceshigh11 - Sep 11, 2013 at 10:40 AM

    Losing in the lap of luxury.

  4. sabathiawouldbegoodattheeighthtoo - Sep 11, 2013 at 11:37 AM

    The first paragraph says it all: punish the organization that uses its absolute best efforts to create a winning team while rewarding owners who use their teams like a piggy bank with a gaggle of minor-league-quality players. Nicely done, MLB.

    • jwbiii - Sep 11, 2013 at 3:57 PM

      Are you suggesting that MLB is something different than team owners?

      • sabathiawouldbegoodattheeighthtoo - Sep 11, 2013 at 4:08 PM

        It certainly isn’t all owners equally

  5. kevinbnyc - Sep 11, 2013 at 1:11 PM

    “But it’ll make the years beyond that a bit easier for Brian Cashman.”

    Assuming he’s there for the years beyond. Or, in the words of kcrobert10, assuming he’s their.

  6. TheMorningStar - Sep 11, 2013 at 2:04 PM

    Of course, the Yankees are trying to get under the threshold without having to make ANY sacrifices, i.e., by conspiring with Selig and MLB to suspend ARod next season, even though he never failed a drug test.

    But hey, its the NY Yankees…when they say jump, MLB says “how high”.

    Hopefully ARod twarts the collusion in Fed court.

  7. theskinsman - Sep 11, 2013 at 6:56 PM

    What’s an extra 29 million…for a 4th place finish?

  8. thebigcaptain2011 - Sep 11, 2013 at 7:14 PM

    Congratulations to the teams that routinely spend nothing year in and year out, complain about the system, the collect luxury tax money from teams who actually try to put a respectable product on the field. Here’s your luxury tax money.

  9. drelms - Sep 12, 2013 at 1:08 AM

    Don’t worry folks the Yankees organization will be okay, with the YES Network and the money they get from companies using their trademarks the money is rolling in.

    Heck, half of that payroll probably went to players that have spent little time on the field, feel sorry for their insurance company

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