The New York Yankees will have to pay a “luxury tax” of nearly $25.69 million because their payroll exceeded the average annual values of teams’ contracts for players on 40-man rosters plus benefits, according to a Dec. 21st Associated Press (AP) story.
The Yankees are the only team to pay this tax for 2009 and have spent more than the threshold in all seven years since the luxury tax was instituted. The collection of teams’ luxury taxes is then used to pay “revenue sharing” funds back to all the other teams – with the idea of promoting at least a limited degree of parity.
Think about this: Since 2003, the Yankees have been billed $174 of the $190 million total in luxury taxes that have been applied to all teams in Major League Baseball. Only three other teams have paid luxury taxes: The Red Sox paid $13.9 million for 2004 – 07; the Tigers paid $1.3 million for 2008, and the Angels paid $927,059 for 2004, the AP reported.
The Yankees’ payroll for luxury tax purposes was $226.2 million, but its regular 2009 payroll was $2.5 million less than its 2008 payroll. Yet, the Yankees’ 2009 payroll was still “$77.8 million higher than any other team – a gap larger than the payrolls of the bottom 11 clubs…”
OK, I admit it, I’m re-stating this AP story because it documents the gap between the Yankees and the Red Sox and puts the Yanks’ overall gap with other teams in perspective. I’m sick of people trying to argue that the Red Sox are in the same league as the Yankees. They are up there, but, they’re still not as close to the Evil Empire as people think.
While I’m poking fun at the Bombers, I believe they’ll be hurt substantially by the loss of Hideki Matsui, and, particularly, Johnny Damon, who appears unlikely to re-sign with the Yanks now. Both provided unique skills and clutch hitting ability that will be missed, forcing a heavier hitting burden onto Derek Jeter, Mark Teixeira, and Alex Rodriguez.
Meanwhile, I just read a NY Daily News article speculating that the Cubs might want to talk to the Yanks about getting either Yanks centerfielder Melky Cabrera or Brett Gardner, another outfielder. I wonder what Big Mike thinks about that possibility. I’ve always thought Melky Cabrera was a bit under-rated and might thrive on another ballclub in another city, where he might play a more central role on the team.