New York is the only team to pay a tax for this season and has crossed the threshold in all seven years since the tax started. According to the collective bargaining agreement, the Yankees must send a check to the commissioner's office by Jan. 31.
New York Yankees: $25,700,000
1) New York Yankees:
$201,449,289
2) New York Mets: $135,773,988
3) Chicago Cubs: $135,050,000
4) Boston Red Sox: $122,696,000
5) Detroit Tigers: $115,085,145
The Yankees were assessed a $26.9 million tax by the commissioner’s office on Monday, 12/22/08, up from $23.9 million last year and their biggest bill since paying nearly $34 million for 2005. The Detroit Tigers, who also failed to qualify for the postseason, are the only other team that must pay tax and owe $1.3 million to the commissioner’s office. While the Yankees pay at a 40 percent rate for the amount over $155 million, the Tigers pay at a 22.5 percent rate because they exceeded the specified threshold for the first time.
New York’s final payroll was $222.2 million and Detroit was second at $160.8 million for the purpose of the luxury tax. To compute it, Major League Baseball uses the average annual values of contracts for players on 40-man rosters and adds benefits. The threshold rose from $148 million last year to $155 million this season. It goes up to $162 million next year and rises by $8 million in each of the following two seasons.
NY Yankees: $26.9 million
Detroit Tigers: $1.3 million
1) New York Yankees:
$209,081,577
2) New York Mets: $137,793,376
3) Detroit Tigers: $137,685,196
4) Boston Red Sox: $133,390,035
5) Chicago White Sox: $121,189,332
2007
Luxury Tax
Checks for the
competitive-balance tax, as it is formally known, are due at the commissioner's
office by Jan. 31. NY's payroll was $207.7 mil. &
Boston was second at $163.1 mil. for luxury tax purposes, which uses the average
annual values of contracts for 40-man rosters and adds benefits. Both teams pay
at a 40 % rate for the amount over the tax threshold, which rises from $148 mil.
this year to $155 mil. next season.
NY Yankees: $23.88 million
Boston Red Sox: $6.06 million
The agreement started with the 2002 season and ran through Dec. 19, 2006.
NY Yankees: $26,000,000
Boston Red Sox: $497,549
NY Yankees: $34,053,787
Boston Red Sox: $4,156,476
Checks for the competitive-balance tax, as it is formally known, are due at the commissioner's office by Jan. 31. Because they exceeded the payroll threshold for the third time under the labor contract that began after the 2002 season, the Yankees were taxed at a 40 percent rate on the amount above $128 million. Boston, which topped the threshold for the second time, was taxed at a 30 percent rate.
NY Yankees: $25,026,352 -
revised to $30,637,531 (4/05)
Boston Red Sox: $3,155,234
LA Angles of Anaheim: $927,059
Amounts are due in the commissioners office by 1/31/2004. In 2003, the first year of the luxury tax, the Yankees were the only team to pay. Because they exceeded the threshold a second time, the Yankees were taxed at a rate of 30 percent for the amount they were over. Boston and Anaheim were taxed at a 22.5 percent rate. If the Yankees go over the 2005 threshold of $128 million they would be taxed at a 40 percent rate.
NY Yankees: $11,798,357.
The luxury tax provisions agreed to in 2002 by baseball owners and players. The tax will be levied on the portion of a team's payroll above a threshold, and the tax rate for a team would vary depending on the number of times it exceeded the threshold. Figures for thresholds are in millions of dollars. Figures for rates are in percent.
Threshold (millions of dollars)
2003 - 117.0
2004 - 120.5
2005 - 128.0
2006 - 136.5
| Tax Rate (%) | ||||
|---|---|---|---|---|
| 1st time | 2nd time | 3rd time | 4th time | |
| 2003 | 17.5 | |||
| 2004 | 22.5 | 30 | ||
| 2005 | 22.5 | 30 | 40 | |
| 2006 | 0 | 40 | 40 | 40 |
Note: Payrolls calculated using average annual values of contracts of players on 40-man rosters, earned bonuses and $9 million per team for benefits.
Money paid by teams under baseball's original luxury tax, which began for the 1997 season and ended with the 1999 season.
| Team | 1999 | 1998 | 1997 | Totals |
| Baltimore | $3,475,048 | $3,138,621 | $4,030,228 | $10,643,897 |
| NY Yankees | 4,804,081 | 684,390 | 4,431,180 | 9,919,651 |
| LA Dodgers | 2,663,079 | 49,593 | 0 | 2,712,672 |
| Boston | 21,226 | 2,184,734 | 0 | 2,205,960 |
| Cleveland | 0 | 0 | 2,065,496 | 2,065,496 |
| Atlanta | 0 | 495,625 | 1,299,957 | 1,795,582 |
| NY Mets | 1,137,992 | 0 | 0 | 1,137,992 |
| Florida | 0 | 0 | 139,607 | 139,607 |
| Totals | $12,101,426 | $6,552,963 | $11,966,468 | $30,618,857 |