Yankees' luxury tax: $13.9 million
Hal Steinbrenner says the Yankees want Derek Jeter and Mariano Rivera back, but reminded fans that deals will only get done if they benefit both sides. Credit: Getty Images
The Yankees have to pay a luxury tax of $13.9 million, according to The Associated Press. It's the club's lowest tax figure since 2003.
The Yankees' tax for being over the payroll ceiling has gone down since they paid $25.7 million in the championship season of 2009. The Yankees paid $18 million last year.
The Red Sox have to pay $3.4 million, up from last year's $1.5 million. Boston is the only other team that has to pay a tax.
The taxes must be paid to the commissioner's office by Jan. 31.
The Yankees have paid the tax in all nine years since it began, $206 million of the $227 million raised under the penalty for high payrolls. The only other teams to pay have been the Red Sox (a total of $18.8 million), Detroit ($1.3 million) and the Los Angeles Angels ($927,000).
The Yankees pay at a 40 percent rate on the amount of their payroll over $178 million, a figure that includes the average annual values of contracts plus benefits.
Boston pays at a 30 percent rate. For purposes of the tax, the Yankees' final payroll was $212.7 million and Boston's was $189.4 million.
Under the new labor contract, the Yankees' rate would increase to 42.5 percent next year and 50 percent in 2013 if they continue to exceed the threshold, and Boston's rate would go up to 40 percent next season.
But if in any year a team goes under the threshold, its rate decreases to 17.5 percent the next time it pays the tax.
As an added incentive for the high spenders to decrease payroll, if they get under the threshold, they will become eligible to get back some of the money they contribute in revenue sharing.
The tax threshold stays at $178 million through 2013, then goes to $189 million in each of the next three years.
Anthony Rieber with AP
More Yankees headlines
