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River Ave. Blues ยป Update: The 2012 luxury tax bill: $18.9M $19.3M

Update: The 2012 luxury tax bill: $18.9M $19.3M

December 18, 2012 by Mike 71 Comments

Tuesday Night Open Thread
Thoughts on a random Wednesday

Tuesday: According to Chad Jennings, MLB screwed up the luxury tax calculation and sent the Yankees a revised bill today. The bill increased by $393,648, so the Yankees now owe $19,311,642. The team’s end of season payroll was revised up to $223,302,212.

Saturday: Major League Baseball has slapped the Yankees with an $18,917,994 luxury tax bill for the 2012 season according to Maury Brown. They were the lone team to pay the tax this season — the Red Sox fell short of the threshold by less than $50k — and their end-of-season payroll for luxury tax purposes was $222,512,928. Payment is due sometime in January.

The Yankees have paid $13.9M, $18M, and $25.69M in luxury tax in the three previous seasons. Since the tax was implemented in 2003, New York has paid over $224M in penalties compared to $22M for the rest of baseball combined. The Yankees will be taxed 50% for every dollar spent over $178M in 2013, but the threshold jumps to $189M in 2014. As you know, the team is going to great lengths to trim payroll and avoid that penalty, which would also trigger some revenue sharing rebates.

Tuesday Night Open Thread
Thoughts on a random Wednesday

Filed Under: Asides Tagged With: Luxury Tax

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