'Cause I'm The Taxman: Yankees Facing Record $29.1M In MLB Luxury Tax
The Yankees are "facing a record" MLB luxury tax penalty of $29.1M, according to Bob Nightengale of USA TODAY. That figure is "about equal" to the entire Astros payroll. The Yankees currently have a $236.2M payroll "for purposes of the luxury tax, and must pay a 50% tax" over the $178M threshold as a "repeat violator." The Dodgers also will be "required to pay a luxury tax this year," but their penalty "will be much less of a financial hit than the Yankees since it's their first offense." The Dodgers "will be taxed at 17.5%, paying a tax of about" $9.9M to MLB's central fund. Dodgers President & CEO Stan Kasten said, "We understand the impact it will be this year and in the future. But I think over time, we will become a team that doesn't pay tax." Nightengale notes once a team "averts the luxury tax for one year, it resets the team's future tax rate." The Yankees are "adamant that their payroll will plummet, and are hopeful of reducing" it below the $189M luxury tax figure beginning in '14. Kasten said, "The luxury tax is a good thing. It's been a good thing for our industry, and I'm fully supportive of it. It's made a difference" (USA TODAY, 9/11).