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Yankees hit with $19 million luxury tax bill

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05:01 PM ET 12.18 | There has been plenty of hand-wringing over the financial plan of the New York Yankees this year. Instead of flexing their financial muscle and sweeping up every player they want, as they have in years past, the Yankees have been spurned by the likes of Eric Chavez, Russell Martin and Jeff Keppinger. Reports have been rampant that the Yankees are very serious about getting under the $189 million luxury tax threshold for 2014 and while many have been skeptical, Maury Brown has a new piece up today that sheds some light on why the Steinbrenners may be leaning that direction. But, today, after accounting adjustments, that player payroll figure that accounts for the 40-man roster and other costs, increased to $223,302,212 and with it, so increased their Luxury Tax bill to $19,311,642. All told, the Yankees have paid $224,558,161 or 91.44 percent of the total $245,568,176 paid since 2003. The Yankees have paid almost a quarter of a billion dollars in luxury taxes over the past decade.

Call to the Pen

Steinbrenner family, Getty Images Steinbrenner family, Getty Images
December 19, 2012  01:06 AM ET

Well...the Dodgers will pick up some of that slack.

December 19, 2012  06:36 AM ET

The small market teams must bang their heads on the wall when they look at those numbers.

December 19, 2012  07:54 AM ET

The luxury cap still does not enable small market teams to have hall of fame players play for them while the players are in their prime.

December 19, 2012  08:03 AM ET

I take issue with the second sentence of this article. I do not believe that the Yankees were so much spurned by the three players mentioned in that sentence, as much as, that the players were never made a real and serious offer by the Yankees that any of the three were willing to accept and that they went elsewhere to better deals.
The simple fact, according to Maury Brown and the featured article, is that the Yankees have paid over $225 million in luxury tax and maybe there comes a time when even multimillionaires get tired of throwing money around like it was confetti. Especially when some of the receivers of that tax money do not spend it as is directed by MLB rule... improving the product on the field.
What makes me laugh is that some people who mocked and derided the Yankees for spending in a so-called reckless manner now mock and deride the Yankees for not spending their money to get some of the talent available in this year's free agent market. Simply put, this year's free agent market is a weak market and none of the players signed are worth what they received. Further, this market is not really worth investing in outside of the types of contracts the Yankees have been making available.
(I stipulate that I do not agree with the signing of Youklis and I do not think he is worth $12 million. However, the deal is for one year and maybe they can get a rebound year out of him or ARod will decide not to retire.)
It remains to be seen what the Yankees do going forward but personally I agree with the belt tightening and hope they go back to the Gene Michael version of the Yankee front office that was in power when George was banned from MLB.

December 19, 2012  08:06 AM ET

This is one of the reasons the Jays were able to make the moves they did. The Yanks won't be investing in major free agents for a couple of years so the time is now!

December 19, 2012  08:08 AM ET
QUOTE(#5):

This is one of the reasons the Jays were able to make the moves they did. The Yanks won't be investing in major free agents for a couple of years so the time is now!

That is, probably, a part of that equation.

December 19, 2012  08:11 AM ET
QUOTE(#4):

I take issue with the second sentence of this article. I do not believe that the Yankees were so much spurned by the three players mentioned in that sentence, as much as, that the players were never made a real and serious offer by the Yankees that any of the three were willing to accept and that they went elsewhere to better deals.The simple fact, according to Maury Brown and the featured article, is that the Yankees have paid over $225 million in luxury tax and maybe there comes a time when even multimillionaires get tired of throwing money around like it was confetti. Especially when some of the receivers of that tax money do not spend it as is directed by MLB rule... improving the product on the field. What makes me laugh is that some people who mocked and derided the Yankees for spending in a so-called reckless manner now mock and deride the Yankees for not spending their money to get some of the talent available in this year's free agent market. Simply put, this year's free agent market is a weak market and none of the players signed are worth what they received. Further, this market is not really worth investing in outside of the types of contracts the Yankees have been making available. (I stipulate that I do not agree with the signing of Youklis and I do not think he is worth $12 million. However, the deal is for one year and maybe they can get a rebound year out of him or ARod will decide not to retire.) It remains to be seen what the Yankees do going forward but personally I agree with the belt tightening and hope they go back to the Gene Michael version of the Yankee front office that was in power when George was banned from MLB.

ummmm.. "Arod will decide to retire" and not "ARod will decide not to retire

December 19, 2012  08:16 AM ET
QUOTE(#1):

Well...the Dodgers will pick up some of that slack.

Wonder what the Dodgers want for Ethier?

Comment #9 has been removed
December 19, 2012  10:41 AM ET

It's like flushing money down the toilet....or paying A-Rod to play baseball.

December 19, 2012  10:44 AM ET
QUOTE(#10):

It's like flushing money down the toilet....or paying A-Rod to play baseball.

They wish they were only paying A Rod $19 million per.

December 19, 2012  11:17 AM ET
QUOTE(#8):

Wonder what the Dodgers want for Ethier?

Good question. And what team can absorb Ethier's contract right now?

December 19, 2012  11:25 AM ET
QUOTE(#4):

I take issue with the second sentence of this article. I do not believe that the Yankees were so much spurned by the three players mentioned in that sentence, as much as, that the players were never made a real and serious offer by the Yankees that any of the three were willing to accept and that they went elsewhere to better deals.The simple fact, according to Maury Brown and the featured article, is that the Yankees have paid over $225 million in luxury tax and maybe there comes a time when even multimillionaires get tired of throwing money around like it was confetti. Especially when some of the receivers of that tax money do not spend it as is directed by MLB rule... improving the product on the field. What makes me laugh is that some people who mocked and derided the Yankees for spending in a so-called reckless manner now mock and deride the Yankees for not spending their money to get some of the talent available in this year's free agent market. Simply put, this year's free agent market is a weak market and none of the players signed are worth what they received. Further, this market is not really worth investing in outside of the types of contracts the Yankees have been making available. (I stipulate that I do not agree with the signing of Youklis and I do not think he is worth $12 million. However, the deal is for one year and maybe they can get a rebound year out of him or ARod will decide not to retire.) It remains to be seen what the Yankees do going forward but personally I agree with the belt tightening and hope they go back to the Gene Michael version of the Yankee front office that was in power when George was banned from MLB.

Very well said!

December 19, 2012  11:27 AM ET
QUOTE(#11):

They wish they were only paying A Rod $19 million per.

I wish they were paying A Rod $0.00. Oh well.

December 19, 2012  11:35 AM ET
QUOTE(#2):

The small market teams must bang their heads on the wall when they look at those numbers.

dodgers would be replacing the yankees in that area, anyways the dodgers got money to throw away any time,,,,

December 19, 2012  11:58 AM ET

nothing new for the old yanks,,,

December 19, 2012  01:45 PM ET

Think about it, that's almost the Cost of RA Dickey's (for a lack of a better word) Extension!!!!!

December 19, 2012  04:00 PM ET
QUOTE(#2):

The small market teams must bang their heads on the wall when they look at those numbers.

How do think the small market teams survive? Answer: With their cut of the luxury tax revenue.

December 19, 2012  06:06 PM ET
QUOTE(#18):

How do think the small market teams survive? Answer: With their cut of the luxury tax revenue.

should the big teams stop over spending such big amount of money every season? wonder who would be the first to collapse financially?? the small teams could chocke with a little half glass of water,,,

 
December 19, 2012  06:10 PM ET
QUOTE(#3):

The luxury cap still does not enable small market teams to have hall of fame players play for them while the players are in their prime.

meaning, the players who are in their prime time should sign with teams WHO over spend their money, such as yankees,red sox and phillies, uhh? wait a minute the yankees aren't spending big any more/and red sox aren't thinking as they use to back in 2010/ the phillies won't spend big either, so we only have two big spenders,,,the dodgers and the halos!!!!

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