Yankees owe $29 million luxury tax

The Sports Xchange
The SportsXchange

The New York Yankees have to pay a record $29.1 million luxury tax bill after the season, according to USA Today.
The figure is based on the Yankees' $236.2 million payroll. The team is taxed 50 percent on every dollar over the $178 million luxury tax threshold.
The tax is calculated based on the team's payroll at the end of the season, so the Yankees' tax amount could slightly change, depending on any transactions they make in the next few weeks.
Next year, the luxury tax threshold increases to $189 million. The Yankees are trying to get under that number to avoid paying the tax in the future and to benefit from revenue sharing.
The Los Angeles Dodgers are the only other team projected to pay the luxury tax. Despite having a current $234.5 million payroll, they will only be charged with a $9.9 million bill because first-time offenders are only taxed 17.5 percent for every dollar over the threshold.
Since the luxury tax was implemented in 2003, the Yankees have paid about $253 million towards it. Every other team in Major League Baseball has combined to pay about $32 million. The Boston Red Sox, Detroit Tigers and Los Angeles Angels are the only other teams to ever pay the tax.
In 2009, the Yankees reportedly paid the previous record of $25.7 million.

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