Tuesday, December 25, 2007

Yankees Shell Out $23 Million for Luxury Tax

The headline speaks for itself. It's $23.88 million to be exact. The way that the luxury tax is computed is:
  • The average salary for every player on the 40-man roster is added up
  • Any amount above $148 million (the value changes every year) is taxed at 40%
The Red Sox were the only other team taxed, owing $6.06 million. That's almost as much as Roger Clemens alone, who cost us $6.98 million. Thanks, Roger.