Yankees baseball blog

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

Yanks still top gun in payroll war

Baseball salaries were booming even before the free-agent escalation that began more than a month ago. The average salary shot up 9 percent this year to $2,699,292, according to final figures released yesterday by the Major League Baseball Players Association. The increase was the highest since a 12.8 percent rise in 2001 and makes it likely the $3 million mark will be broken next year or in 2008.

"The increase in the average salary is a reflection of the growth in overall industry revenues, and that while the sport still has significant economic challenges, the increased average is a reflection of the level of the talent on the field," said Bob DuPuy, baseball's chief operating officer.

Baseball salaries are soaring, with Alfonso Soriano ($136 million), Vernon Wells ($126 million) and Carlos Lee ($100 million) agreeing to nine-figure deals since the end of the season, boosting baseball's total of $100 million contracts to 11. Still, no one has approached Alex Rodriguez's record $252 million, 10-year contract, agreed to after the 2000 season. The Yankees had the highest average salary for the eighth consecutive season, but their average dropped to $6.95 million from a record $7.39 million the previous year. Continue

Yankees payroll 2006

Salaries include pro-rated signing bonuses (NY Post)

Derek Jeter $20,600,000
Jason Giambi $20,428,572
Mike Mussina $19,000,000
Randy Johnson $16,000,000
Alex Rodriguez $15,000,000
Johnny Damon $13,000,000
Hideki Matsui $13,000,000
Gary Sheffield $13,000,000
Jorge Posada $12,000,000
Mariano Rivera $10,500,000
Carl Pavano $8,000,000
Jaret Wright $7,666,667
Kyle Farnsworth $5,416,667
Shawn Chacon $3,600,000
Javier Vazquez $3,000,000
Ron Villone $2,250,000
Octavio Dotel $2,000,000
Tanyon Sturtze $1,500,000
Bernie Williams $1,500,000
Aaron Small $1,200,000
Mike Myers $1,150,000
Miguel Cairo $1,000,000
Tony Womack $900,000
Kelly Stinnett $650,000
Robinson Cano $381,100
Bubba Crosby $354,250
Scott Proctor $353,675
Chien-Ming Wang $353,175
Andy Phillips $331,950
Wil Nieves $328,600

Team total $194,464,656