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The Yankees haven’t won the World Series since
2000…
The Yankees haven’t won the World Series since 2000
but got the bill Friday for another disappointing
season, when they were slapped with a $26 million
luxury tax by the commissioner's office, raising New
York's total to $97.75 million over the past four
years.
Boston, which missed the playoffs, was the only
other team over the tax threshold and will pay
$497,549.
New York was knocked out in the first round of the
playoffs for the second straight year. The Yankees
paid tax in all four seasons of the just-expired
collective-bargaining agreement: $11.8 million in
2003, $26 million in 2004 and $34 million for last
year. Although the Yankees' spending on players may
have decreased because of the tax, the team says any
dip was slight.
"I would say it has an effect," Yankees president
Randy Levine said. "But at the end of the day, it's
always been George Steinbrenner's philosophy to win.
If a difference-maker is attainable, the Boss goes
and gets him."
At the center of labor negotiations in 2002, the
luxury tax was paid by only three teams over the
four seasons, with the Red Sox owing $7.8 million
and the Anaheim/Los Angeles Angels $927,057.
Payments are due at the commissioner's office by Jan.
31. Commissioner Bud Selig concluded the tax
achieved the result management wanted.
New York's bill decreased this year because its
payroll, as calculated for the tax, declined from
$212.9 million to $201.5 million and the threshold
for where the tax began increased from $128 million
to $136.5 million. Under the new labor contract, the
threshold for the tax rises to $148 million next
year.
For luxury tax purposes, the average annual values
of contracts are used and benefits are included. "The
luxury tax is not the something the players are in
love with because its purpose is to cause people to
have an extra cost when they sign a player," union
head Donald Fehr said. "Obviously, we were prepared
to live with it during the term of the last
agreement and we got what we expect will be
appropriate modifications this time.
Using the regular method of accounting, the Yankees
finished with a $207.5 million payroll for their 40-man
roster, according to final figures released Friday
by the commissioner's office, up from $206.6 million
in 2005.
Boston was a distant second this year at $137.5
million, followed by the New York Mets ($116.6
million), Houston ($107.7 million), the Los Angeles
Dodgers ($107.2 million) and the Los Angeles Angels
($104 million).
The World Series champion St. Louis Cardinals were
10th at $96.1 million, and the AL champion Detroit
Tigers were 14th at $89.8 million.
Florida, last at $21.1 million, had less than half
the payroll of Pittsburgh, 28th at $43.4 million.
Tampa Bay was in between them at $36.4 million.
Management calculated the average salary at
$2,642,915. The players' association, whose
calculation method differs slightly, had the average
at $2,699,292 in its annual report this week.
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