Posted September 10, 2013

Report: Yankees to pay record $29 million luxury tax

MLB
The Yankees will reportedly be hit with a record $29 million luxury tax bill. (Greg Fiume/Getty Images)

The New York Yankees will reportedly be hit with a record $29 million luxury tax bill. (Greg Fiume/Getty Images)

The New York Yankees are facing a record $29.1 million luxury tax penalty, according to USA Today.

The team currently has a $236.2 million payroll for luxury tax purposes and must pay a 50% tax over the $178 million threshold for being a repeat offender of tax rules.

The Houston Astros, who have the majors worst record, have a payroll of about $21.1 million.

The Los Angeles Dodgers payroll, by comparison, is $234.5 million for this season. The Boston Red Sox ($173.3 million), Philadelphia Phillies ($163.5 million) and Detroit Tigers ($152.9 million) are the only other teams with payrolls over $150 million.

The Dodgers will be taxed at 17.5%, paying a tax of about $9.9 million to MLB’s central fund.

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“We are mindful of the tax,” Dodgers president Stan Kasten said. “We understand the impact it will be this year and in the future. But I think over time, we will become a team that doesn’t pay tax.

“We had quite a significant rebuilding project in front of us, and that is what we turned our attention to. Over time, as we start developing our own homegrown players, we expect our payroll to go down.”

 


8 comments
oasis1994
oasis1994

Big Dog - soccer is a sh#t sport played by hooligans. Players flop and cry when they are fine.

Baseball is actually doing well. There is more money now then ever before because of TV contracts. The Astros payroll is that low right now because they are rebuilding. The owner had to strip the team down to nothing to build them back up. It was not that long ago that Houston had a decent payroll and fielded a great team. 

thebigdawg3
thebigdawg3

The most shocking thing in this article:  Houston Astros have a total payroll of just $21 million.  Baseball is a dying sport.  Stick a fork in MLB.  Joke sport.  Joke players.  Joke owners and union.  MLS has already surpassed NBA and NHL in just 15 years of existence.  Baseball will be passed by MLS in the next 5 - 7 years.  MLB say "bye bye".

klawkat
klawkat

What's wrong with Baseball and Bud Selig is how LITTLE a team owner is allowed to spend. MLB is a legal monopoly so Bud gets to pick and choose owners. His track record is abysmal. Think McCourt, Luria, former Walmat CEO in Kansas City, and Houston. They make baseball non-competitive. I don't advocate buying a winner like George used to do, but a city or owner shouldn't be allowed in if they can't meet a minimum payroll (50 million?) to field a watchable team. 

Dave C
Dave C

@thebigdawg3 I wish we could wager on this cuz you are so wrong it's ridiculous.    Baseball will never go away or be "passed" in your words by soccer, to much tradition.   And how has the MLS surpassed the NBA and NHL?  What are you basing this statement on?  

Nonfantasylandman
Nonfantasylandman

@thebigdawg3 hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahhahahahahahahahahaahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahah

Nonfantasylandman
Nonfantasylandman

@klawkat so waste money on players to make the team a 65-70 team now and probably stunt the growth of the team that has the potential to be pretty pretty good in a few years?  C'mon man

oasis1994
oasis1994

@klawkat 

Very, very true.

Loria should be banned from the sport. Forget the steroid users; at least they want to win!