Major League Baseball’s luxury tax system includes a pretty substantial cliff. Teams pay 20% on each marginal dollar above the luxury tax threshold on their first year, 30% on their second year and 50% on their third year and beyond. As a result, there are strong financial incentives for a team to dip below the […]
Tag: payroll
Breaking Down the Yankees Payroll: Infield
*Brian McCann, $15M vesting option if he totals 1,000 PAs from 2017-18, catches 90 games in 2018 and is not on the disabled list at the end of the 2018 season *Brendan Ryan, $1M player option *Alex Rodriguez, $6M bonus at 763 HR and 764 HR *Brett Gardner, $12.5M Team Option, $2M Buyout *Jacoby Ellsbury, […]