MLB and Union save Yankees Millions!
George Steinbrenner and Brian Cashman must be celebrating today. The Yankees just made $4.6 million for 2007 and by the time this agreement is up in 2011, the Yankees will have saved a total of $53.8 million, just because MLB and the union raised the threshold of the luxury tax. All of the other 31 teams stayed under the budget, but since George and company flaunt the system, they are the real winners in this new deal between MLB and the Player’s Association. The NY Times reported on October 25, that the union wanted the Yankees to go back to the 22.5% starting point for the luxury tax, but MLB would not let that happen.
http://www.nytimes.com/2006/10/25/sports/baseball/25chass.html?_r=1&oref=slogin
The NY Yankees are currently more that $60 million over the tax threshold. The 2006 luxury tax number was $136.5 million. In 2007 it rises to $148 million. Since the Yankees are the only team guaranteed to be over that in 2007, they get to save 40% of the $11.5 million difference. By the end of the agreement the Bronx Bombers will save $16.6 in the last year of this agreement, just in luxury tax. The Red Sox are the next closet team, and they get to spend an additional $21 million in 2007, and still remain under the guideline. The Marlins can now spend an extra $133 million and still stay under the cap.
There are currently 31 teams that could live by the constraints of the luxury tax threshold, but only one team does not abide by these rules. Sure there should be a minimum that a team could spend, like $75 million, and then teams would have a level playing field, but George Steinbrenner and his front office believe it is their right, to buy any player they want.
Look at the Sheffield situation. NY does not want him, but they are going to pick up a $13 million option, just so they can prevent another team from signing him, and then they could use him as a commodity in obtaining more overpriced talent. If you just take the top 11 players under contract with NY, the total is over $154 million. That does not even include the $20 million more for Pavano, Wright, and Farnsworth. Take the great 8 position players, and add in Mussina, Johnson, and Rivera, and NY is over the luxury limit all through 2011.
Baseball should not ratify this agreement. The only change should be one phrase. Change luxury tax to salary cap, and make the Yankees play by the same rules that everyone else can live by.
I am
The Fan’s Commish
Rick Swanson