Goshen News, Goshen, IN

December 18, 2013

Yankees hit with $28 million luxury tax


Goshen News

---- — NEW YORK — The New York Yankees were hit with a $28 million luxury tax bill, pushing their total past the $250 million mark since the penalty began in 2003.

According to Major League Baseball calculations sent to teams Tuesday, the Los Angeles Dodgers were the only other team that exceeded the tax threshold this year and must pay $11.4 million. Boston finished just under for the second straight year, coming in $225,666 shy of the $178 million mark.

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.

Because the Yankees have been over the tax threshold at least four consecutive times, they pay at a 50 percent rate on the overage, and their $28,113,945 bill was second only to their $34.1 million payment after the 2005 season. The Yankees are responsible for $252.7 million of the $285.1 million in tax paid by all clubs over the past 11 years.

Yankees owner Hal Steinbrenner said he hopes to get under the threshold next year, when it rises to $189 million. That would reset the team’s tax rate to 17.5 percent for 2015 and get the Yankees some revenue-sharing refunds.