For the tenth consecutive year the New York Yankees will be hit with a luxury tax and this one is pretty steep. Read more after the jump.
The Yanks were hit with an $18.9 million luxury tax by Major League Baseball. The team finished with a $222.5 million payroll for purposes of the tax, according to figures sent to teams Thursday and obtained by The Associated Press.
Figures include average annual values of contracts for players on 40-man rosters, earned bonuses and escalators, adjustments for cash in trades and $10.8 million per team in benefits. New York has run up a luxury tax bill of $224.2 million over the past decade, with the fee increasing from $13.9 million last year. The Yankees’ tax rate rose from 40 percent to 42.5 percent this year and figures to climb to 50 percent next season. But they hope to get under the threshold in 2014, when it rises to $189 million. Dropping under the threshold would lower their potential tax rate in 2015 to 17.5 percent.
One of the leagues most successful franchise’s is also the biggest spender. This is the 14th consecutive year they finished with the highest payroll. The Yankees finished at a record $223.3 million topping their previous mark of $222.5 million in 2008.
“You don’t get a trophy for having the highest payroll,” general manager Brian Cashman said. “I’m not going to feel weird either way, if we’re the highest or we’re not the highest. That’s not the issue. Just want to be the best.”
