The $26.9 million is was the most they've had to pay in a season since 2005 when they paid $34 million. Last year they paid $23.9 million, and overall they've paid $148.3 million since the luxury tax system began.
I hope these small-market teams are happy about the yearly handout. It would be nice if they put the money back into their teams.
The only other team that had to pay a luxury tax was the Detroit Tigers who had to pay just $1.3 million.
Tuesday, December 23, 2008
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I haven't said it out loud, but for all those who have been aghast that the Yanks want to cut payroll even though they are moving into a cash cow of a new stadium, THIS is the reason. The luxury tax is essentially paying for everyone els'es CC Sabathia.
Having said that, I would still sign Tex given the Yanks huge needs for offense, defense, and to get younger. He is the right player now - one who will not be avaiable next year. Plus, they get to shed a number of other big contracts next year, esp. Matsui's. I vote the wait and save then.
Here's the key fact:
"...the Yankees pay at a 40 percent rate for the amount over $155 million..."
That number goes up to $162 million next year, but unless I am remembering wrongly, the Yanks are already above that next season, even if right now their total payroll will be less than this year's was.
IOW, add a 40% surcharge on anything Tex or Manny are offered.
Again, I think it is worth it for Tex, given salary coming off the books next year. But it is really hard to make case now for Manny, imo. The only way I do Manny route is a 1 and 1 deal (where second year is option with buyout).
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