Yankees to pay 30 million in luxury tax

[Mavrik]

AP: Yankees Will Pay Record Luxury Tax

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Apr 20, 9:06 PM (ET)

By RONALD BLUM

NEW YORK (AP) - The struggling New York Yankees will be hit with a record luxury tax this year. Initial projections by the commissioner's office based on opening-day rosters have the Yankees owing $30,637,531, according to information obtained this week by The Associated Press.

The only other team projected to owe a tax is the World Series champion Boston Red Sox, who would pay $969,177.

Going into Wednesday night, the Yankees were just 5-9, tied with Tampa Bay for last place in the American League East.

For the luxury tax, payrolls are based on the average annual values of contracts for all players on the 40-man roster and include benefits. Under that formula, the Yankees opened with a payroll of $204.6 million, followed by Boston ($131.2 million), the New York Mets ($116.4 million), the Los Angeles Angels ($111.2 million) and Seattle ($109.3 million).

Teams with payrolls above $128 million owe tax this year. The Yankees pay at a rate of 40 percent for the amount they are over because they will be exceeding the threshold for the third time under the labor contract that began in 2003. The Red Sox, projected to be over for the second time, pay at a 30 percent rate.

Baseball will send the bills in late December based on end-of-season figures.

Last year, the Yankees paid a tax of $25,964,060 based on a final payroll of $207,046,868, according to the commissioner's office. Figures were adjusted slightly after the initial bill was sent in December, with New York's tax rising by $937,708.

Boston paid $3,148,962, a decrease of $6,272 from the December bill, and the Angels paid $938,309, an increase of $11,250.

In the adjusted 2004 luxury tax payroll figures, the Yankees led at $207 million, followed by the Red Sox at $134.5 million and the Angels at $124.7 million.

[TomShane]

No no no. They win because of their great scouting and home-grown talent.

[Maxman]

No no no. They win because of their great scouting and home-grown talent.

Jeter, Rivera, Williams, Posada have been there for each one.

Once they starting adding the Gimabi's, ARODs and Mussina's of the world they have 0 RINGS.

So yes, they did win because of the homegrown talent. These days...the minor leagues has SQUAT. If they win it all this year it will be because the Yankee knew Randy Johnson was something special!

[Dr. Strangelove]

Time to send some of that luxury money to the Brewers.

[TomShane]

Jeter, Rivera, Williams, Posada have been there for each one.

Once they starting adding the Gimabi's, ARODs and Mussina's of the world they have 0 RINGS.

So yes, they did win because of the homegrown talent. These days...the minor leagues has SQUAT. If they win it all this year it will be because the Yankee knew Randy Johnson was something special!

Correction: They won because they could afford to pay their home-grown talent to exhorbitant contract extensions. If Montreal, KC, or San Diego could do the same thing as the Yankees, they'd be tossing World Series Championships back and forth like a hackey sack.

[PFSIKH]

Jeter, Rivera, Williams, Posada have been there for each one.

Once they starting adding the Gimabi's, ARODs and Mussina's of the world they have 0 RINGS.

So yes, they did win because of the homegrown talent. These days...the minor leagues has SQUAT. If they win it all this year it will be because the Yankee knew Randy Johnson was something special!

The Skanks are lucky George was banned from baseball. Otherwise they would have zero titles.