Sox and Yankees only teams to pay Luxury tax

[Beckett95]

NEW YORK -- The New York Yankees and Boston Red Sox got extra bills Wednesday.

 

The Yankees were hit with a $34 million luxury tax and the Red Sox were told they owe $4 million to the commissioner's office.

 

Baseball's biggest rivals, both eliminated in the first round of the postseason, were the only teams to exceed the payroll threshold established in baseball's labor contract, according to figures sent to teams by the commissioner's office.

 

The Yankees owe $34,053,787 following tax payments of $25,964,060 last year and $3,148,962 in 2003.

 

Boston must pay $4,156,476, up from $3,148,962 last year.

 

Because they exceeded the payroll threshold for the third time under the labor contract that began after the 2002 season, the Yankees were taxed at a 40 percent rate on the amount above $128 million. Boston, which topped the threshold for the second time, was taxed at a 30 percent rate.

 

Checks for the competitive-balance tax, as it is formally known, are due at the commissioner's office by Jan. 31.

 

Under the labor contract, the Yankees and Red Sox will be the only teams subject to the luxury tax next year and both will pay at a 40 percent rate on the amount over the threshold, which rises to $136.5 million. The collective bargaining agreement expires next December, meaning the sides could negotiate new rules for 2007 and beyond.

 

Using 40-man rosters, the average annual values of contracts and including benefits, the Yankees' payroll finished at $213.1 million, followed by Boston at $141.9 million, the New York Mets at $119.2 million, the Los Angeles Angels at $115.9 million and Seattle at $111.9 million.

 

Also Wednesday, the Major League Baseball Players Association said salaries resumed their climb this year after a rare one-season drop.

 

The average salary rose 7.2 percent to $2,479,125, according to the union's annual study. The increase was the steepest since a 7.3 percent rise in 2002 and followed a 2.5 percent decrease last year -- only the third drop since the union began tracking salaries in 1967.

 

The Yankees had the highest average salary for the seventh straight season, setting a record at $7,391,168. For the second year in a row, Pittsburgh was the only team with an average below $1 million, finishing at $963,674.

 

In its first season in Washington, the Nationals averaged $1.91 million, up from $1.23 million in the team's final season as the Montreal Expos. The Florida Marlins dropped their average from $2.12 million to $1.87 million and are likely to have the lowest average next year after shedding nearly all of their veteran players since the end of the season.

 

The union study was based on the 904 players on Aug. 31 rosters and disabled lists.

 

Third basemen were the highest-paid players at an average of $5.7 million, followed by outfielders ($4.7 million), first basemen ($4.3 million), designated hitter ($3.9 million), starting pitchers ($3.8 million), catchers ($4.1 million), shortstops ($3.5 million), second basemen ($2.9 million) and relief pitchers ($1.3 million).

http://sports.espn.go.com/mlb/news/story?id=2268025

[jimmycarter05]

Why can't we just have a salary cap? 100 million sounds alright to me.

[stocker323]

100 million dollar salary cap? That would be ridiculous. You'd see scrubs getting like 3-5 million a year.

[Optimist]

Why can't we just have a salary cap? 100 million sounds alright to me.

 

Salary caps? :thumbdown

[yankeessuck013]

Salary caps? :thumbdown

 

surprising this comes from a yankee fan

 

[jimmycarter05]

Salary caps? :thumbdown

 

 

Yeah, salary caps, its what the NBA and the NFL have.

[yankeessuck013]

Yeah, salary caps, its what the NBA and the NFL have.

 

and nhl

[Optimist]

surprising this comes from a yankee fan

 

 

This isn't from a Yankee fan, it's from a baseball fan.

 

There's no reason for salary caps in baseball.

[jsinger121]

baseball needs a cap. player salaries are out of control. it would bring competitive balance as well. if MLB had a salary cap like the NFL you would see more parity which would be good. it would give all teams a chance to compete.

[jimmycarter05]

baseball needs a cap. player salaries are out of control. it would bring competitive balance as well. if MLB had a salary cap like the NFL you would see more parity which would be good. it would give all teams a chance to compete.

 

 

Amen.

[Optimist]

it would give all teams a chance to compete.

 

I thought this was Major League Baseball...not Little League.

 

Hey, while we're making the game 'fair' for everyone, why not just suspend the World Series and send everyone home with a ring?

[Sox Fan on Cape]

baseball needs a cap. player salaries are out of control. it would bring competitive balance as well. if MLB had a salary cap like the NFL you would see more parity which would be good. it would give all teams a chance to compete.

 

The NFL system would never be accepted by the Players Union of MLB. An example : A-Rod has a bad season, and NY releases him, thus saving remaing funds on contract and salary cap relief. This is how the NFL works ( with exception of bonus money ), the Players Union of MLB has already demonstrated that they aren't willing to compromise from there current contract ( real example A-Rod to the Sox trade ).

[jsinger121]

i know the players union will never do that because they are powerful but it would be for the best if MLB had a cap

[jimmycarter05]

The NFL system would never be accepted by the Players Union of MLB. An example : A-Rod has a bad season, and NY releases him, thus saving remaing funds on contract and salary cap relief. This is how the NFL works ( with exception of bonus money ), the Players Union of MLB has already demonstrated that they aren't willing to compromise from there current contract ( real example A-Rod to the Sox trade ).

 

No no I definately don't agree with the NFL salary cap system, cut a guy a there goes his salary, I believe you must pay the player whatever amount of money you sign him for, and I believe there should be a salary cap in MLB to prevent teams like the Yankees to keep from monoplozing the sport. I say this because the Yankees have commited 122 million dollars to 3 players; Damon, Farnsworth, Matsui and the Red Sox payroll has decreased from 121 million to 97 million. Teams shouldn't be able to buy all the great players. Having a payroll would help players choose their loyalty and really separate the GMs and Managers from the ones that win because of their team and the ones that win because they are great managers and GMs.

[RedSoxRooter]

This isn't from a Yankee fan, it's from a baseball fan.

 

There's no reason for salary caps in baseball.

 

"The Yankees had the highest average salary for the seventh straight season, setting a record at $7,391,168."

 

Ummm. Yeah. <_>

[Optimist]

"The Yankees had the highest average salary for the seventh straight season, setting a record at $7,391,168."

 

Ummm. Yeah. <_>

 

Your point?

[vegassoxfan]

the point is at some point the league will start dropping in popularity. even i (a sox fan) am sick of all the same teams every single year. let me guess the playoffs next year. sox, yanks, sox, (angels, a's, twins revolving door with those three. but thats pretty much the american league barring any major injuries. the blue jays and maybe Guardians will make some noise but i dont think they are there yet. same old s*** just another year. the only way to make a move is to spend money like the mets. at least in football and basketball you have to make intelligent signings and not just the most and ormost expensive.

[jimmycarter05]

the point is at some point the league will start dropping in popularity. even i (a sox fan) am sick of all the same teams every single year. let me guess the playoffs next year. sox, yanks, sox, (angels, a's, twins revolving door with those three. but thats pretty much the american league barring any major injuries. the blue jays and maybe Guardians will make some noise but i dont think they are there yet. same old s*** just another year. the only way to make a move is to spend money like the mets. at least in football and basketball you have to make intelligent signings and not just the most and ormost expensive.

 

Amen, when's the last time the Pirates did any good? Or the Royals? What about the Brewers? What's their payroll? 40 million? 50 million? If it was 50 million, then the 3 top salaries on the Yankees are 13 million more than that. 3 players for 65 million dollars as compared to 25(at the least) making 50 million. With Mike Sweeny out of the picture, the Royals have 24 players making 25 million dollars. Something isn't right there. The bottom line is that there should be a salary cap in Major League Baseball to control the domination of the teams and because there is not is another reason Bud Selig should be fired as MLB commisioner.

[Optimist]

Yes, let's punish big market teams which draw alot of fans. And, let's punish owners who are willing to spend a few dollars to help their team win.

 

Salary caps are a ridiculous idea for baseball.

[vegassoxfan]

this is coming from a red sox fan. i know you will never hear a yankee fan say there should be a salary cap but as a BASEBALL and sox fan i would love to see a minimum and maximum on salarys.

[vegassoxfan]

nobody is being punished jackass. it would make mlb as a whole a much more entertaining product for all of its fans. i know you cant think outside of new york ass hole but there are baseball fans all over this country that would be even more so if the league was more competitive.

[Optimist]

nobody is being punished jackass. it would make mlb as a whole a much more entertaining product for all of its fans. i know you cant think outside of new york ass hole but there are baseball fans all over this country that would be even more so if the league was more competitive.

 

Yes, let's make teams worse...that will help baseball!

 

And just because I disagree with you (and you're apparently God's gift to baseball) doesn't make me an '*******' or 'jackass;' I'm sure you're above that, please act like it.

[vegassoxfan]

alright sir, we will leave the name calling out of it. lets see. a cap would make mabe 5 or 6 teams have to cut payroll therefore making them "worse" while the rest of the league 25 or so teams would get "better". making a more balanced competitive league. your problem is that you cant stand the thought of another team with a higher payroll than the new york spendees. (and you still havent won in 5 years with an obscene amount of more money being spent)

[empirestrikesback26]

Have the sox always had to pay this? I thought it was just the yankees.

[Optimist]

your problem is that you cant stand the thought of another team with a higher payroll than the new york spendees. (and you still havent won in 5 years with an obscene amount of more money being spent)

 

I would have no problem with other teams spending more than the Yankees; I think you're assuming I'm a fan of the Yankees having a $200 million payroll, I'm not. But I do beleive the Yankee ownership, like every other team's ownership, has the right to spend however much it wants or can; I just don't like the idea of the Comissioner dictating payrolls (call me a baseball libertarian.)

 

Whatever harm high payrolls do to baseball indirectly are repaired by the good it does directly (the boost places like Toronto and Kansas City see in ticket sales when the Yankees come to town, tv revenues, etc.)

[ksushi]

The Sox, Angels and Yankees usually have to pay it.

[natsfan]

An outsider's view of the Johnny Damon signing: awesomeinc.blogspot.com

[Optimist]

An outsider's view of the Johnny Damon signing: awesomeinc.blogspot.com

 

Spam. :thumbdown

[ORS]

Whatever harm high payrolls do to baseball indirectly are repaired by the good it does directly (the boost places like Toronto and Kansas City see in ticket sales when the Yankees come to town, tv revenues, etc.)

Now this is truly funny. Do you honestly think that Toronto's 9/10 home games against the Yankees each year will fill more seats than if the Jays were a competitive team for all 81 games? The case becomes even more unlikely when considering non-division opponents, since there are only 3/6 home games against each of the big-market clubs. This is a time tested truth, winners fill the seats.

[vegassoxfan]

I would have no problem with other teams spending more than the Yankees; I think you're assuming I'm a fan of the Yankees having a $200 million payroll, I'm not. But I do beleive the Yankee ownership, like every other team's ownership, has the right to spend however much it wants or can; I just don't like the idea of the Comissioner dictating payrolls (call me a baseball libertarian.)

 

Whatever harm high payrolls do to baseball indirectly are repaired by the good it does directly (the boost places like Toronto and Kansas City see in ticket sales when the Yankees come to town, tv revenues, etc.)

 

 

thank you optimist. at least you made me laugh to day. a couple extra thousand fans at a royals and blue jay game makes up for a 20 mil payroll and 50-112 record that those bottom feeders usually have. wow. this conversation is over.