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Scratch that: Yankees luxury tax goes up nearly $400,000

Posted by: Chad Jennings - Posted in Misc on Dec 18, 2012 Print This Post Print This Post | Email This Post Email This Post

From the AP…

NEW YORK (AP) — The New York Yankees’ luxury tax bill for this year has gone up by nearly $400,000.

Major League Baseball sent a revised accounting to the team Tuesday, raising New York’s payment to $19,311,642 from $18,917,994. The change reflected how one player’s salary was accounted for.

New York is the only team to pay the luxury tax this year. The Yankees’ final payroll for luxury tax purposes climbed from $222.5 million to $223.4 million.

The Yankees pay at a 42.5 percent rate on the amount over the $178 million threshold. The luxury tax uses average annual values of contracts and includes benefits.

New York’s regular payroll — 2012 salaries, earned bonuses and prorated shares of signing bonuses — increased from $223.3 million to a record $224.2 million.

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172 Responses to “Scratch that: Yankees luxury tax goes up nearly $400,000”

  1. Jerkface December 18th, 2012 at 5:35 pm

    The Yankees, if they kept this payroll level, would save 2 million in luxury tax in 2014.

  2. chicken little December 18th, 2012 at 5:43 pm

    I bet Hal now lowers Cash’s budget for 2013 by $400,000. Then again, that may be better than what George would do — fire an intern and blame Bud’s money crunchers for a conspiracy.

  3. austinmac December 18th, 2012 at 6:08 pm

    Bowden also criticized the Mets for only getting a draft pick for Reyes. Any related situations on the Yankees? Hmmm.

  4. austinmac December 18th, 2012 at 6:18 pm

    The Yankees have spent money to win this year. I give them that credit despite not agreeing with some of it. What they are unwilling to do to win this year is impact 2014 and beyond. The Martin money was not out of line with the market, and I bet the Yankees could have gotten him a little cheaper.

    The catching position is being downgraded significantly. Stewart would have led the world in passed balls if he played enough. Plus, he is about the worse looking hitter I have seen in the majors. Cervelli wasn’t considered good enough to help a team presumably trying to win last year. Now, he is the starter? His back and bat, major questions to go with his inexperience. Wilson? His stats at the plate are simply awful.

    Without Swisher, they need some offense. They are running out of chances to add to it.

  5. austinmac December 18th, 2012 at 6:19 pm

    Romine’s back and bat

  6. mick December 18th, 2012 at 6:23 pm

    anybody seen the Hobbit?

  7. PacoDooley December 18th, 2012 at 6:36 pm

    mick December 18th, 2012 at 6:23 pm
    anybody seen the Hobbit?
    ——————————-

    I assume you aren’t referring to some player I am not aware of – if you mean the movie – I would like someone to tell me whether I can take my 7 year old (who read the book, but the rating suggests he may be too young)…

  8. Spudz December 18th, 2012 at 6:38 pm

    Hobbit should be fine for a 7 year old. There is a little bit of violence, nothing more than Lord of the Rings.

  9. J. Alfred Prufrock December 18th, 2012 at 6:40 pm

    Joe Willie White Shoes for Jets OC!

  10. J. Alfred Prufrock December 18th, 2012 at 6:43 pm

    “They’re running passing routes like they’re in high school.”
    -Namath

    LOL

  11. mick December 18th, 2012 at 6:46 pm

    things have been much easier since my divorce from the jets.

  12. Shame Spencer December 18th, 2012 at 6:53 pm

    The only way to keep Cano is to give him an insane number of years.. starting to think they go this route.

  13. mick December 18th, 2012 at 6:57 pm

    why would cano not take the same money elsewhere, then go FA again ?

  14. Barry December 18th, 2012 at 7:00 pm

    It seems clear from the previous thread that we are all going to miss Swisher. Failing Hamilton he was the play.

  15. PacoDooley December 18th, 2012 at 7:00 pm

    Shame Spencer December 18th, 2012 at 6:53 pm
    The only way to keep Cano is to give him an insane number of years.. starting to think they go this route.
    —————————————
    Like 12/$240m? (or perhaps $200m) Average value ‘only’ $20m, but it’s basically like paying him $25 a year. Or perhaps they could get away with a bit less. I wonder if MLB would let them get away with it.

    They could heavily front-load that deal as well, so they pay $35m in 2014 when their austerity payroll is low and the $35m doesn’t matter so much. By the end they can be paying $10m per season. I know it is the annualized value that matters for luxury taxes, but you still have to actually cut the checks and so a front-loaded deal can help in the regard (like A-Rods deal, where he is quietly going to drop out of the top 10 highest paid players pretty soon).

  16. PacoDooley December 18th, 2012 at 7:02 pm

    mick December 18th, 2012 at 6:57 pm
    why would cano not take the same money elsewhere, then go FA again ?
    ————————

    really depends on the numbers. Perhaps the Yankees total offer is similar, but he prefers to stay in NY. Front-loading a deal can also make a player happier since they get cash in hand sooner (as opposed to the small market approach of deferred payments, or the Marlins approach of backloading, which really helps when you dump players later!).

  17. Shame Spencer December 18th, 2012 at 7:05 pm

    I go 12/200, front-load the deal to pay out $160-170 in the first 8 years and pay the other $30-40 over the final 4 years. I don’t think there are any CBA rules that could stop them from doing that. It’s manipulating the numbers but not to a crazy extent. He’d still be making between $7.5-10 million per year in those final four years.

    I think this is how they’re going to approach it.

    If he wants or can get closer to $250 million dollars overall, then there is simply no hope lol.

  18. mick December 18th, 2012 at 7:06 pm

    i’m sure cano would go for the front load if got an opt out with it after 4-5 years…

  19. Shame Spencer December 18th, 2012 at 7:07 pm

    mick December 18th, 2012 at 6:57 pm

    why would cano not take the same money elsewhere, then go FA again ?

    ————–

    You really think he’ll get a better deal as a 38 year old??

    Give him a ridiculously long deal for $200 million and give him some sort of no-trade so he isn’t afraid of being moved after 6 years or something when a lot of the real dollar money is paid out.

  20. mick December 18th, 2012 at 7:07 pm

    He’d still be making between $7.5-10 million per year in those final four years.
    =============================
    not if he goes elsewhere for a 4-5 year deal then gets another contract equal or better than that at age 35.

  21. Shame Spencer December 18th, 2012 at 7:08 pm

    mick December 18th, 2012 at 7:06 pm

    i’m sure cano would go for the front load if got an opt out with it after 4-5 years…

    ————–

    Why do you think he’d have a problem with the front loading of the deal?

    If that’s the case then set it up to be more of a bell curve in how the real dollars pay out.

  22. mick December 18th, 2012 at 7:10 pm

    i didnt say he would.

  23. jmills December 18th, 2012 at 7:10 pm

    Hello smart ones and I see the well meaning Proof is around! Great to greet Dickey. Let’s have lots of shining kids at the dome and less of the profane crowd.

    Mick, thanks for all the music.

    Best from lil’ narcissistic moi.

  24. Shame Spencer December 18th, 2012 at 7:10 pm

    mick December 18th, 2012 at 7:07 pm

    He’d still be making between $7.5-10 million per year in those final four years.
    =============================
    not if he goes elsewhere for a 4-5 year deal then gets another contract equal or better than that at age 35.

    —————–

    There’s no opt-out in my deal. And I don’t think he’ll get more than $17ish million AAV at 35. Who would pay that much for the back end of the good-Cano years?

    No no no, I already know.. the Dodgers.

  25. Shame Spencer December 18th, 2012 at 7:12 pm

    mick December 18th, 2012 at 7:10 pm

    i didnt say he would.

    —————

    …then stop putting an opt out clause in my deal!

  26. mick December 18th, 2012 at 7:12 pm

    There’s no opt-out in my deal.
    =================
    Then, as is the case with most top echelon Boras clients, there is no deal.

  27. Shame Spencer December 18th, 2012 at 7:16 pm

    mick December 18th, 2012 at 7:12 pm

    There’s no opt-out in my deal.
    =================
    Then, as is the case with most top echelon Boras clients, there is no deal.

    —————-

    That’s crazy talk, Cano could end up losing $100 million dollars if he gets injured or starts trending downward rapidly. You make it sound like he’s in his mid twenties.

  28. mick December 18th, 2012 at 7:16 pm

    jmills…did you know that tom trauberts blues was waltzing matilda?

  29. Shame Spencer December 18th, 2012 at 7:17 pm

    :arrow:

    Ugh..

  30. mick December 18th, 2012 at 7:18 pm

    shame….say he gets 200m wherever he goes or stays.
    why would he take the same money here over a longer period of time when he can get it elsewhere in say 1/2 the time then go for another contract?

  31. jmills December 18th, 2012 at 7:19 pm

    Mick, no I didn’t – that video was the ony one of yours I couldn’t play.

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