Yankees Hit With a $28M Luxury Tax Bill

The 2013 Yankees payroll of $237,018,889 has resulted in a luxury tax bill of $28 million:

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 following 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 12.5 percent for 2015 and get the Yankees some revenue-sharing refunds.

But following agreements Tuesday on a $2 million, one-year deal with second baseman Brian Roberts and a $7 million, two-year contract with left-hander Matt Thornton, the Yankees are at $177.7 million for 15 players next year, when benefits are likely to total between $11 million and $12 million. Their only hope to get below the threshold appears to be if an arbitrator upholds most of Alex Rodriguez’s 211-game suspension, relieving the team of a large percentage of the third baseman’s $25 million salary.

More here.

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