The Yankees have now paid over
$148 million in Luxury Tax bills
UPDATE: The original exact figures, provided by The Associated Press, had an error within it, that is now being adjusted. Originally, the 2008 figure for the Yankees was shown as $26,682,702. That figure was incorrect. The correct figure is $26,862,702. The corresponding table below has been updated to reflect the exact figures.
The New York Yankees blasted through MLB’s soft cap, better known as the Luxury Tax in 2008, and in doing so, wound up with a $26.9 million tax bill, the largest levied against the Yankees in three years.
The Luxury Tax, or Competitive Balance Tax, as it is called in the MLB collective bargaining agreement, has set thresholds by which teams that exceed the figure are then taxed. For 2008, that figure was $155 million. The Yankees have broken the threshold every year since the tax was instituted as part of the CBA reached in 2002 and applied in 2003. Due to an escalating rate applied to consecutive offenders of the tax, the Yankees were assessed a 40 percent rate over the $155 million.
The other club to break the Luxury Tax threshold this year was the Detroit Tigers. They must pay $1.3 million, based on 22.5 percent rate as the this is the first time the Tigers have broken the threshold.
According to The AP, the Yankees have paid $148.5 million through the Competitive Balance Tax since 2003, or 90 percent of the total.
With the addition of the Tigers this year, only four clubs have broken the threshold for the tax since 2002. They are the Yankees, Red Sox, Angels, and now, Tigers.
Below is a complete break down of the Luxury Tax figures to date, courtesy of The AP:
Luxury Tax Figures: 2003-2008
|Yanks ||$11,798,357 ||$25,964,060 ||$33,978,702 ||$26,009,039 ||$23,881,386 ||$26,862,702 ||$148,494,246 |
|R. Sox || ||$3,148,962 ||$4,148,981 ||$497,549 ||$6,064,287 || ||$13,859,779 |
|Angels || ||$927,059 || || || || ||$927,059 |
|Tigers || || || || || ||$1,305,220 ||$1,305,220 |
|Total ||$11,798,357 ||$30,040,081 ||$38,127,683 ||$26,506,587 ||$29,945,673 ||$28,167,922 ||$164,586,303 |
Maury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He is contributor to Baseball Prospectus, and is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.
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