Yankees Hit With A $18.9M Luxury Tax Bill
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NEW YORK (CBSNewYork/AP) — The New York Yankees have been hit with an $18.9 million luxury tax by Major League Baseball, the 10th consecutive year they will pay a penalty for their spending.
The Yankees 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.
Following its payroll-shedding trade with the Los Angeles Dodgers last summer, Boston finished just $47,177 under the $178 million threshold. The Los Angeles Angels wound up at $176.7 million and Philadelphia at $174.5 million.
Figures include average annual values of contracts for players on 40-man rosters, adjustments for cash in trades and $10.8 million per team in benefits.
Yankees managing general partner Hal Steinbrenner says it’s his goal to lower the team’s payroll to $189 million over the next few years.
“I’m a finance geek,” Steinbrenner said Thursday. “I just feel that if you do well on the player development side, and you have a good farm system, you don’t need a $220 million payroll. You don’t. You can field every bit as good a team with young talent.”
Under baseball’s new labor contract, the luxury tax threshold will be at $189 million after the 2013 season.
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