Home MLB News After Adjustments, Yankees 2012 Luxury Tax Bill Exceeds $19.3 Million

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After Adjustments, Yankees 2012 Luxury Tax Bill Exceeds $19.3 Million PDF Print E-mail
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Written by Maury Brown   
Tuesday, 18 December 2012 15:21

Adjusted numbers released today for the New York Yankees end of year payrolls just made their wallet hurt that much more. Late last week the Yankees were said to have been hit with a Luxury Tax bill of $18,917,994 on an end of year player payroll of $222,512,928.


But, today, after accounting adjustments, that player payroll figure that accounts for the 40-man roster and other costs, increased to $223,302,212 and with it, so increased their Luxury Tax bill to $19,311,642. All told, the Yankees have paid $224,558,161 or 91.44% of the total $245,568,176 paid since 2003.

The $224,558,161 end of year payroll for the Yankees is the highest since 2009 when it was $226,222,933. It is the second-highest in the last decade.

The Bronx Bombers paid $13,896,069 in Luxury Tax payments last year on EOY player payroll of $212,740,172. The reason that the penalty is higher this year in comparison to the player payroll is a higher tax rate of 42.5 percent for breaking the Luxury Tax threshold consecutively. Since this Luxury Tax system was put in place in 2002, the Yankees have broken the ceiling every year it’s been in place. Below is a breakdown:





Tax Rate













































Data by way of The Associated Press. Figures based on payrolls for the 40-man rosters and include averages of multiyear contracts plus a 1-30th of Major League Baseball's costs of health and pension benefits; clubs medical costs; insurance; workman's compensation, payroll, unemployment and Social Security taxes; spring training allowances; meal and tip money; All-Star game expenses; travel and moving expenses; postseason pay; and college scholarships.

Maury BrownMaury 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 writes for Baseball Prospectus and is a contributor to Forbes. He 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 (select his name in the dropdown provided).

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