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Volume 25 No. 87
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Red Sox, Nationals Set To Pay Luxury Tax Fee; Yankees Avoid It

The Yankees before this season had paid the tax 15 straight years, for a total of $341M
Photo: GETTY IMAGES

The Red Sox and Nationals "remain the only teams on track" to pay the luxury tax this season, while the Yankees, with a payroll of $192.1M, are "set to finish below" this year's $197M threshold for the first time since the luxury tax was adopted, according to Ronald Blum of the AP. The Yankees have "paid the tax 15 straight years" for a total of $341M. The Red Sox' luxury tax payroll was at $238.4M on Aug. 31, up from $233.9M on Opening Day. The Nationals' luxury tax payroll was second at $203.9M on Aug. 31, an increase from $201.1M on Opening Day. Both figures still "might go up because of earned bonuses and call-ups." The Giants had to "cut luxury tax payroll slightly" from $196.7M to $195.3M since Opening Day. The Red Sox' base tax rate was 30% in '16, but reset to 20% because the team "dropped under the threshold last year." Under the surtax in the CBA that began last year, the rate for the Red Sox rises to 32% on the amount above $217M this year and to 62.5% on the amount above $237M. Because the Nationals "paid the tax last year," their base rate is 30% (AP, 9/12).