Yankees projected to pay 31 million just in luxury tax...

[RLA68]

http://sports.espn.go.com/mlb/news/story?id=2042246

NEW YORK -- The struggling New York Yankees will be hit with a record luxury tax this year.

Initial projections by the commissioner's office based on Opening-Day rosters have the Yankees owing $30,637,531, according to information obtained this week by The Associated Press.

The only other team projected to owe a tax is the World Series champion Boston Red Sox, who would pay $969,177.

Going into Wednesday night, the Yankees were just 5-9, tied with Tampa Bay for last place in the American League East.

For the luxury tax, payrolls are based on the average annual values of contracts for all players on the 40-man roster and include benefits. Under that formula, the Yankees opened with a payroll of $204.6 million, followed by Boston ($131.2 million), the New York Mets ($116.4 million), the Los Angeles Angels ($111.2 million) and Seattle ($109.3 million).

Teams with payrolls above $128 million owe tax this year. The Yankees pay at a rate of 40 percent for the amount they are over because they will be exceeding the threshold for the third time under the labor contract that began in 2003. The Red Sox, projected to be over for the second time, pay at a 30 percent rate.

Baseball will send the bills in late December based on end-of-season figures.

Last year, the Yankees paid a tax of $25,964,060 based on a final payroll of $207,046,868, according to the commissioner's office. Figures were adjusted slightly after the initial bill was sent in December, with New York's tax rising by $937,708.

Boston paid $3,148,962, a decrease of $6,272 from the December bill, and the Angels paid $938,309, an increase of $11,250.

In the adjusted 2004 luxury tax payroll figures, the Yankees led at $207 million, followed by the Red Sox at $134.5 million and the Angels at $124.7 million.

[RockSports17]

With this horrible play so far, if we keep this up. Hopefully, some of that payroll will be cut off. I've been saying for awhile, that I would not mind at all if the Yankees were to start rebuilding, and try to get a good farm system in place. I know, the chances of that happening with Steinbrenner still in control are zero. But when Steinbrenner is not the owner anymore, I wouldn't doubt if the new owners cut payroll a lot.