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Home » Around BaseballDecember 2006 » Checks and Inbalances

Checks and Inbalances

The Yankees have until January 31 to pay their $26M luxury tax bill. Their taxable payroll was $201.5M, which was $65M more than the permitted threshold. There were a dozen teams whose payroll was less than $65M. The gap between the Yankee and Red Sox payroll was greater than $65M.

The Red Sox are the only other team to have exceeded the payroll limit this past season and must pay $497,549.



If the Yankees were 65 million over the Luxury Tax line, and More than 65 million over the Red Sox payroll, doesn't that suggest that the Red Sox must have been Below the payroll?

The Red Sox were just barely over the threshold, which is why they paid less than $1M. The discrepancy is probably because I was using CBS Sportsline, which doesn't necessarily show the payroll amount subject to the luxury tax. As you can see, the gap between the Yankees and Red Sox is almost $80M.

Sorry about the confusion.

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