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mlb luxury tax

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mlb luxury tax

Postby kickureface » Wed Jul 15, 2009 4:59 am

i just googled this and got conflicting results. how does this work, and whos paying tax this year?
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Re: mlb luxury tax

Postby Pogotheostrich » Wed Jul 15, 2009 9:27 am

I'm not sure what the threshold for 2009 is but it was $155 million in 2009. Right now I think only the Yankees are going to have to pay the luxury tax this year. Their opening day payroll was over $200 million with the Mets being the next closest team with just under $150 million opening day payroll.
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Re: mlb luxury tax

Postby jake_twothousandfive » Wed Jul 15, 2009 10:27 am

I just Googled it myself. Here's what I found:

The cap on spending before the luxury tax (officially called the Competitive Balance Tax) kicks in changes during each season of the current collective bargaining agreement. The amounts for the next several seasons are:

2007 - $148m
2008 - $155m
2009 - $162m
2010 - $170m
2011 - $178m

A team that goes over the luxury tax cap for the first time would pay a penalty of 17.5% of the amount they were over that cap. Second-time violators would pay 30%, and those doing it beyond a second time would be taxed at 40%.

And here's a list of the 2009 MLB Payrolls.
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