Quite a luxury: $26M tax bill

To borrow from a popular credit-card commercial, the Yankees' 97 victories (and one more in the postseason) were anything but priceless. They cost $201.5 million for the players and another $26 million for baseball's luxury tax. The luxury tax bill arrived Friday, as first reported by The Associated Press, marking the fourth straight season the Yankees have to pay a penalty for exceeding the designated payroll threshold.

The $201.5 million was $65 million over the 2006 threshold of $136.5 million. The Yankees, as repeat offenders, must pay a 40 percent tax on the excess. It is due to the commissioner's office by Jan. 31. Boston was the only other team over the tax threshold and will pay $497,549. From 2003 to 2006, the AP said, baseball charged the Yankees a total of $97.75 million for the luxury tax. In the new collective-bargaining agreement, the threshold will continue to increase, a development that greatly pleases the Yankees. Continue