The LoHud Yankees Blog

A New York Yankees blog by Chad Jennings and the staff of The Journal News

When a $1 is really $1.40

Posted by: Peter Abraham - Posted in Misc on Dec 23, 2008 Print This Post Print This Post | Email This Post Email This Post

Think you’ll have bills to pay in January? The Yankees owe MLB a $26.9 million in payroll luxury tax by the end of next month according to the Associated Press.

The threshold in 2008 was $155 million. The Yankees had a 40-man roster payroll of $222.2 million and had to pay 40 percent on the $67.2 million they were over.

The threshold for 2009 is $162 million. The Yankees are already at roughly $164 million for 15 players, so any dollar they spend from now on is really $1.40.

Andy Pettitte, Xavier Nady and Brian Bruney will cost roughly $16 million. Then the Yankees will have seven 0-3 service time players to sign. That’ll cost another $3-4 million.

So while it’s easy to say, “Go get Manny or Tex,” the reality is that a $150 million deal for Mark Teixeira is really a $210 million deal.

At some point, that’s actual money.




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