The Associated Press reported a record six teams
are paying baseball's luxury tax this season, led by the Los Angeles
Dodgers at $31.8 million and the New York Yankees at $27.4 million, the 14th straight year New York has had to pay the tax.
Other taxed clubs include Boston ($4.5 million), Detroit ($4
million), San Francisco ($3.4 million) and the World Series champion
Chicago Cubs ($2.96 million).
Los Angeles owes for the fourth
consecutive year and like New York pays at a 50 percent rate on the
amount above the $189 million threshold. The Dodgers paid a record $43
million for 2015, and their four-year total is $113 million.
Boston and San Francisco pay at a 30
percent rate as offenders for the second straight year, and Detroit and
the Cubs - a first-time payer - are at 17.5 percent.
The purpose of the
luxury tax in an effort to slow spending by large-market clubs and
combined with revenue sharing has helped increase the competitive of
small-market teams and those in the middle.
The threshold increases to $195
million next year under the new labor contract, and tax rates go up,
too. There will be additional surtaxes, raising the rate to as much as
95 percent for the amount above $235 million, with the increase to be
phased in for 2017 at the midpoint between the old and new rules.
Los Angeles lowered its payroll from a
record $291 million last year to just under $255 million, which topped
the major leagues for the third straight year. For purposes of the tax,
which uses average annual values and includes benefits, the Dodgers'
payroll was nearly $253 million.
Luxury tax payrolls figure to
increase slightly across the major leagues next year because of a
provision in the labor contract calling for the inclusion of salaries of
players sent outright to the minors starting this Dec. 1.
The Yankees' regular payroll was
second at $224.5 million, up slightly from last year's $223.6 million,
followed by Boston ($200.6 million), Detroit ($199 million), the Cubs
($182 million), San Francisco ($181 million) and the Los Angeles Angels
($173 million).
Milwaukee had the lowest payroll at
$65.5 million, down from $98 million last year. Tampa Bay was at $67
million, down from $77 million.
The AP report said that spending on 40-man major league payrolls totaled nearly $4.1 billion, an increase of $200 million.
There is an old saying that a team cannot "buy" a championship. But last year, the majority of big spending teams did well.
The Cubs got 103 wins, Boston 93, Dodgers 91, Giants 87, Detroit 86 and the Yankees 84. That is 544 total team wins by the luxury tax group or a winning percentage of .560 (about 91 wins).
There is an old saying that a team cannot "buy" a championship. But last year, the majority of big spending teams did well.
The Cubs got 103 wins, Boston 93, Dodgers 91, Giants 87, Detroit 86 and the Yankees 84. That is 544 total team wins by the luxury tax group or a winning percentage of .560 (about 91 wins).
