New York Yankees Get Their MLB Tax Bill for 2023 Season
The New York Yankees will pay tax money to Major League Baseball for the second straight year, the Associated Press reported on Saturday.
The Yankees were one of eight teams to pay above the Competitive Balance Tax in 2023, a four-tiered system designed to tax teams that pay above a certain amount of payroll.
The threshold for 2023 was $233 million. Any money spent above that was taxed in the following way:
Tier 1: 20% surcharge on any dollar spent between $233-$253 million;
Tier 2: 32% surcharge on any dollar spent between $253-$273 million;
Tier 3: 62.5% surcharge on any dollar spent between $273-$293 million;
Tier 4: 80% surcharge on any dollar spent over $293 million.
The rates go up for second-time offenders, of which the Yankees are one.
The Yankees were the third-most taxed team in the Majors for 2024, as they will pay $32.4 million in tax on their payroll, which was figured at $280 million, per Spotrac.
But, they weren’t even the highest-taxed team in the city. The New York Mets not only spent more than any other team, they were taxed more than any other team and set a record in doing so.
The Mets had a tax payroll of $374.7 million and a tax bill of $100.7 million, both of which are now MLB highs.
In all, eight teams had to pay some sort of tax, with it totaling $209.8 million.
The other teams taxed were the San Diego Padres ($39.7 million), the Los Angeles Dodgers ($19.4 million), the Philadelphia Phillies ($6.98 million), the Toronto Blue Jays ($5.5 million), the Atlanta Braves ($3.2 million) and the Texas Rangers ($1.8 million).
The Yankees are in good shape for 2024. Per Spotrac the team has a projected tax payroll of just $195 million, which is well below the 2024 threshold of $237 million. But, arbitration bills and other factors could certainly change that in the new year.
