How Yankees stack up with $189 million luxury tax threshold
For luxury-tax purposes, MLB uses the average annual salary of a player’s contract to determine team payroll each season. Teams who exceed the $189-million threshold are charged a fee, with multiple offenders paying more. Here’s a look at the AAV for those Yankees currently under contract:
Tanaka will give the Yankees 20 players under contract for the 2014 season. Rodriguez, however, has been suspended for the year. That leaves six open roster spots. That means at least $3 million more in salary will be added to the payroll (the MLB minimum is $500,000)
Also, teams are charged approximately $11 million for insurance and pension benefits and typically budget about $5 million for in-season minor league call-ups.
TOTAL: $210.8 million