MLB: Only two teams on a luxury tax course

In the 2018 season, only two teams of MLB are expected to pay luxury taxes. This is the result of a media report. Accordingly, only the Boston Red Sox and Washington Nationals will exceed the salary limit of 197 million dollars.

The Associated Press reports that Major League Baseball records show that the Red Sox had an opening day payroll of $233.9 million, which would result in a $9.4 million tax at the end of the year. Nationals, on the other hand, were at 201 million, which would correspond to a tax of 1.2 million dollars.

The San Francisco Giants, on the other hand, started the season at $196.6 million, just below the limit. This is followed by Chicago Cubs (183.9 million), Houston Astros (182.4 million), Los Angeles Dodgers (181.99 million) and New York Yankees (178.8 million).

For the Yankees in particular, it is remarkable that they are well below the limit, because from 2003 to 2017 they always paid luxury taxes, a total of as much as 341 million dollars, significantly more than any other team since the introduction of the tax. Over the past four years, the Dodgers have been at the top of the table, paying nearly $150 million to the rest of the league over the last five seasons.

If the Dodgers and Yankees are still below the limit at the end of the year, they would reduce their current tax rate from 50 to 20 percent for the coming season. In 2019, however, the limit will be raised from 197 to 206 million dollars.

The luxury tax calculation is based on the sum of the average salaries of the players in the 40-player squad over the year. Additional benefits of over $14 million and performance bonuses are also included in the calculation. Only amounts paid above the limit are taxed.

This article was published without previous view by the Major League Baseball.