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  1. #1
    Join Date
    Dec 2010
    Location
    California
    Posts
    50

    Yankees hit with $18M luxury tax, Red Sox A Far 2nd!!!

    By RONALD BLUM AP Sports Writer

    The Yankees have been hit with an $18 million luxury tax on their major league-leading payroll. It was New York’s lowest tax since 2003.

    The financial information was sent to teams Tuesday and obtained by The Associated Press.

    While the Yankees failed to repeat as World Series champions this year, they lowered their tax from nearly $26 million when they won the title last year.

    The Boston Red Sox are the only other team that will have to pay despite having failed to make the playoffs. Boston exceeded the payroll threshold for the first time since 2007 and owes almost $1.5 million.
    Last edited by bpmullen24; 12-22-2010 at 03:13 AM.

  2. #2
    Join Date
    Feb 2009
    Posts
    95
    Isn't this for the 2010 year only?, not including the moves we made this winter? I could be wrong but I think all the moves we made this offseason will go towards the 2011 luxury tax threshold.

  3. #3
    Join Date
    Jan 2006
    Posts
    10,888
    Ya, it's for 2010 not 11.
    Signature removed because **** is a dodging filter

  4. #4
    Join Date
    Jan 2008
    Posts
    2,509
    This number will skyrocket for next year. Not a huge deal though.
    World Series Champions
    1903 | 1912 | 1915 | 1916| 1918 | 2004 | 2007 | 2013

  5. #5
    Join Date
    Jan 2008
    Posts
    22,016
    Quote Originally Posted by aabar4518 View Post
    This number will skyrocket for next year. Not a huge deal though.
    Won't sky rocket due to all the contracts coming off the books, will be around the same number if not a little bit higher.

  6. #6
    Join Date
    Jan 2008
    Posts
    2,509
    Quote Originally Posted by AI4LIFE View Post
    Won't sky rocket due to all the contracts coming off the books, will be around the same number if not a little bit higher.
    I thought we currently have a higher payroll than the Yankees, who didn't lose too much off their salary thus far? Not sure, but I guess "skyrocket" was the wrong word. Let's say "increase substantially". If it goes from $1.5M to $4.5M (somewhat likely), that's a 300% increase...
    World Series Champions
    1903 | 1912 | 1915 | 1916| 1918 | 2004 | 2007 | 2013

  7. #7
    Join Date
    May 2006
    Location
    Greenville, SC
    Posts
    17,930
    Quote Originally Posted by aabar4518 View Post
    This number will skyrocket for next year. Not a huge deal though.
    Quote Originally Posted by AI4LIFE View Post
    Won't sky rocket due to all the contracts coming off the books, will be around the same number if not a little bit higher.
    Quote Originally Posted by aabar4518 View Post
    I thought we currently have a higher payroll than the Yankees, who didn't lose too much off their salary thus far? Not sure, but I guess "skyrocket" was the wrong word. Let's say "increase substantially". If it goes from $1.5M to $4.5M (somewhat likely), that's a 300% increase...
    A $1.5M tax means that they were ~$5M over the limit. The CBT increases from $170M to $178M in 2011 so they'd be under the limit if they'd kept the same players. Swapping AGon for V-Mart is actually a net savings of $1M. Similarly, swapping Beltre for Crawford+payments to players on other clubs (e.g., Lugo) is a net savings. They are at least trending back downward.

    At the start of the offseason I'd figured their "luxury tax" payroll to be around $125M to keep the players they were most likely to retain through arbitration (e.g., ~$12M for Paps, no Oki) and not including FAs. AGon, Crawford, Jenks, Wheeler, and the minor league moves push that to around $165M.

    Good news: if my calculations are correct, the Sox should be able to re-sign AG next year to his long awaited "franchise" deal without limiting the Sox based on the luxury tax. The net difference is ~17M which is less than the cap space ($13M) and Ortiz' retiring contract ($12.5M). Drew and Cameron provide another $21.5M towards the cap as well.

    In the end it appears the Sox still have wiggle room to make an in-season deal for a significant contract if something goes horribly wrong without incurring penalties.

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