Yanks get 2009 luxury tax bill

Open Thread: Wang avoids arbitration
Still waiting on Teixeira

This year’s damage: $26.9M. That’s up from $23.9M last year, and it’s the most they’ve owed since 2005. It also brings their total luxury tax payout to $148.3M in the six seasons it’s existed. The only other team over the $162M threshold this year are the Tigers, who owe just $1.3M. Checks are due January 31st.

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Open Thread: Wang avoids arbitration
Still waiting on Teixeira
  • Steve

    That would be the last place Tigers?

    Guess there’s more to winning than just spending money, huh?

    • JeffG

      I knew that team wasn’t going to be shit when they paid out D. Willis – never thought the pitching would hold up. Commented as much too. What did surprise me though was that the Indians blew up. Also, embarrassingly I thought the Mariners were going to at least be in the wild card race. Caboom went the last two.

  • Thomas

    Just wondering, what would happen if the Yankees don’t send the check (i.e. they refuse to pay)?

    • http://www.riveraveblues.com Mike A.

      Bud Selig adds more off days to the playoffs.

      • JeffG

        Nice one.

        It is so foul how they schedule the playoffs, including start time.

  • Ryan S.

    I’m sure fans of all the small market teams can’t wait to see their owners continue to use our money on things that will not make their teams better.

    • Steve

      Would those be the same teams that see their biggest crowds of the year when the Yanks come to town?

    • A.D.

      thats really the worst part of it, many owners pocket the money instead of spending on payroll

  • Reggie C.

    So that’s where the Manny/Tex funds are going to get allocated to…

  • D.B.H.O.F. p.k.a The Donald

    Yeah I really do not get the whole lux tax thing.

    Licensing money is split up even steven on MLB team licensing, yet the Yanks bring in the most money with their logo. The Yanks bring the best or among the best every year in gate money which gets split with the teams they play.

    The national tv contracts are largely built on the Yankees, Dodgers, Red Sox and Mets (usually in that order). Yet the Yanks still need to give money to the other greedy owners? The whole system is bogus.

    • Matt M

      then again…the FA market is so inflated that only a few teams can financially withstand the risk of throwing 161 million at CC Sabathia. 85 at AJ burnett

      also in baseball like no other sport. the best talent in the amatuer draft does not go to the teams in the most need. signability cases and teams needing to draft for probability rather than ceiling have been major factors in reinvigorating our farm system.

      we can bitch about us getting the ‘raw deal’ here…but in actuality, the luxury tax is just the price that we need to pay to be able to run wild and have our way with the league. the ownership is fine with it because it builds the yankee brand and increases overall company revenue

      • D.B.H.O.F. p.k.a The Donald

        Actually the ownership is not fine with it, they pay it because they have to. George pitched a fit about the luxury tax situation many a time.

        I would like the Yanks to send fleet upon fleet of Brinks trucks to MLB offices with bags upon bags of Susan B Anthony coins. 26.9 million and five dollars worth. The extra five would be so the Commish Buddrick could buy himself two haircuts better than the one he usually gets.

        • http://actyankee.blogspot.com Matt
          • D.B.H.O.F. p.k.a The Donald

            Sacagawea is way better looking than Susan B, and shines too much. Ole’ Used Car salesman Bud needs to get those dirty old ug mug Susan B Anthonys.

    • Quatro Jones

      Very bogus.

      Yankees should recruit 10-12 big market teams and leave MLB and start a new league.

      • Perspective5

        Now that sure is an interesting idea. Highly unlikely, but I like it.

  • JeffG

    Interesting that benefits are calculated in the figure… if health care is included (as it usually is a benefit) there is a good chance Pavano screwed us out of more money than we thought.

    • D.B.H.O.F. p.k.a The Donald

      LOL are you serious? So I guess the years Giambi and Kevin Brown had their “parasite” (read HGH / roid) problems, they got taxed for that too?

      Good thing there is not a stupid tax of we would have gotten hit big time for Igawa.

      • JeffG

        The only stupidity tax I can think of is the lottery – we actually benefit from it (NYLotto adverts). God I hate those commercials. A bit of a hypocrite as I’ll admit every now and then I buy a ticket… but advertising gambling especially when it comes from our govt. (which is supposed to promote the public good) is a real pisser.

        …Back to the benefits though, I bet A-Rod’s suites are built into that figure. Perhaps room service too, with the shush shush Playboy whores? That has got to burn Cashman’s ass.

        • D.B.H.O.F. p.k.a The Donald

          Speaking on the stupidity tax issue. There are more taxes for that than just the lottery. Cigs, Booze, and the really wealthy would say income tax (as they build their shelters)

    • A.D.

      my guess is that as a member of the players union you get health care, so that wouldn’t really matter. Furthermore, unless the Yankees self insure (doubtful), the medical benefit would be his premium, aka the same as everyone else.

      The benefits would be if guys get limos, or free flights on owners planes, flights home, extra tickets. That way teams dont look to offset salary with redic benefits, just why they use AAV instead of front or backloaded contracts

  • Perspective5

    I can see why the Luxury Tax rule was put into effect. The MLB hoped that it would cause the big market teams, like the Yankees, to stray from spending so much money every year because some unsuccessful teams-and fans of those teams- thought that spending all of this money was, as many of us have heard, ‘buying championships’. The only problem is, is that everything should even out if those teams who are struggling manage their teams the right way. The Yankees along with several other teams have the luxury of signing superstars to huge contracts, whereas teams with less success get to DRAFT future superstars. The Yankees rarely have that advantage to be able to draft young talent (although they do have a pretty good farm system). Basically, if MLB is going to try and mess with how big market teams do their business, why don’t they put a limit on how many consecutive years a team gets one of the top 5 picks in the draft?

    Oh and one more thing about the Luxury Tax… Why do they have it if it doesnt stop any team from doing anything?? yea, it gets some money away from the Yankees and other teams but…has it stopped them at all?? Why make a rule that doesnt stop what it was intended to?? And finally I’ll end with a question: How do they determine how much a team owes once it does go over the limit?

    • http://www.riveraveblues.com Mike A.

      It’s definitely a deterrent. Not every team can afford to pay out luxury tax bucks like the Yanks.

      And the tax is 40% on every dollar over the threshold. Actually, I think it’s a sliding scale. Some percentage for the first offense, a higher percentage for the second offense, even higher for the third, etc. The Yanks have been at the max for a few years now.

      • Perspective5

        So basically what your saying is, the Yankees luxury tax will go down next year so long as they keep a lower payroll, right?

        • http://www.riveraveblues.com Mike A.

          Yep. Even if they maintain the same payroll it’ll go down because the threshold increases each season.

          • JeffG

            With the same payroll we’d have a savings of 2.8 mil next year… about time to start thinking bigger.
            The scale only adjusts up about 4.5% a year and I’ll presume we’ve been blowing that away, but to think in the next couple of years there is the chance the players salaries could go down. If we could actually get some of the farm up there is potential that we would share no more. I’m not crossing my fingers though and to be honest I really don’t care.

      • Steve S

        Theyll say its a deterrent to most teams but when the fixed the initial threshold in 2002, the only team that was over the mark were the Yankees. To me, Selig can argue that the ltax and revenue sharing are meant for competitive balance but he had a primary goal, inhibit the Yankees spending and as a result curb salaries. I think Steinbrenner defied him intentionally by just ignoring it so blatantly. Look at how the Mets and Sox, who were the only teams even close when they instituted it have budgeted themselves to stay under the threshold. Most teams use that as an excuse, save for the Yankees, Red Sox or Mets, 90% of the teams would not even think about a $162M payroll, especially one that consistently stays above the threshold.

  • Perspective5

    Interesting. Thanks for the Info.

  • E-ROC

    Wow! That figure is more than the Marlins payroll.

    • A.D.

      Im pretty sure the Marlins luxury tax & revenue sharing money is more than their payroll

  • Tony S

    Other than the luxury tax & the sharing of common revenues – do the Yanks have to pay any other penalties/tax?

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