Wow. Twenty-six million in tax alone; that represents nearly 180% of the Marlins' total 2006 payroll!

NEW YORK - The Yankees got the bill Friday for their sorry season.

The Yankees were slapped with a $26 million luxury tax by the commissioner’s office, raising New York’s total to $97.75 million over the last four years.

Boston, which missed the playoffs, was the only other team over the tax threshold and will pay $497,549.

Linkage from MSNBC.

Wait a minute - the New York papers say that Boston is just as bad as the Yankees when it comes to payroll. If that is so, why isn't Boston paying as much tax as NY??

So the Red Sox paid $51.1 million to talk to Matsuzaka and if you add this $26 million to what they had to pay to talk to Igawa, the Yanks paid $52 million to talk to a much worse pitcher

(Yes, I know it is completely different... don't attack me)

So the Yankee penalty is nearly equal to ARod's salary, while the Red Sox penalty is closer to Dustin Pedroia. Sweet.

"...Using the regular method of accounting, the Yankees finished with a $207.5 million payroll for their 40-man roster, according to final figures released Friday by the commissioner’s office, up from $206.6 million in 2005.

Boston was a distant second this year at $137.5 million, followed by the New York Mets ($116.6 ..."


That's odd. Some friends who are Yankees fans hae told me that the Sox and Yanks were in the same league -- by themselves -- when it comes to payroll. Yet this article, oddly, describes the Sox as a "distant" second, and portrays the Mets as relatively close to the Sox, closer than the Sox are to the yanks, anyway. Hmmm...

When it comes to payroll the Sox are pretty much first among equals between themselves, the Angels, and the Mets, with honorable mention often afforded to the Cubs. None of these teams are anywhere near the big spenders the Yankees are, and neither are we, but because they're first and we're always second, some strange logic goes through the minds of Yankee fans, particularly when they want to somehow justify the latest Steinbrenner spending fee.

Just because we have the purchasing power to beat the Yankees in any one acquisition does NOT make us equal to them, and even less does it make us the same as them, which is another whole question.

To be fair a lot of it has to do with this offseason though. $100M for Matsuzaka, $40M for Lugo, $70M for Drew. Off the top of my head the Cubs were the only team to spend more with them getting Soriano and resigning ARam.

The payrolls should be closer between the two teams next year although I don't think we'll see a year with the Sox outspend the Yankees any time soon.

Chico, the Yankees have to spend what they spend because it's good for baseball.
Who else could poorer teams turn to to rid them of their expensive contracts?
When you have to compete for the wild card with the evil big market clubs like the Red Sox and the Mets, you have less room to make mistakes. You need a powerfull friend you can turn to for help.

The Yankee's charitability to small market teams via the luxury tax helps parity in baseball.
The Red Sox's greed. stingyness, and lack of caring for the good of the sport leads them to spend right at the luxury tax threshold;
Thumbing their noses at small market clubs who would otherwise sit in squalor at the bottom of the standings./sarcasm

Exactly-- the reason people are claiming the gap has become much closer is that it HAS.

I don't have exact numbers for the Yankee payroll for 2007, but I'm assuming it won't be much, if any, more than last year-- (unless they blow their wad on Zito).

The Sox payroll has now pushed way past $150 million with the signing of Matsuzaka, and still has the potential to go even higher if the FO spends even more... like go after this Clemens fellow that everyone wants.

The gap has closed a lot this offseason, and it's almost to the point where the arguments of "the Yankees spend WAY too much money" or "Theo is cheap and doesn't pay enough to build this team!" are becoming obsolete.

... Ah yes, it was only last July where Red Sox fans were calling Theo cheap while overseeing the 2nd highest payroll in the bigs-- good times.

When the Sox spend $200 million per year for 5 years THEN I will put the Sox in the same category as the Yanks. Until that time it is still not close. Regardless of what Yankee fans want us to believe, and regardless of what the Sox spend this year.

Nah.
By then you guys will probably have modified the criteria again.

The thing is - there's never been any criteria at all. A lot of people said that the Sox are now "as bad as the Yankees" so we can't complain. I really don't understand that at all. I would be willing to bet that none of us looked at the financial situations of all the teams in baseball and picked a team that spent to an acceptable level. Yes the Sox have spent a ton of money this off season. No question and I feel no need to apologize for that. Nor do I think Yankee fans should apologize for the moves of their front office.

It is what it is. The Yankees have higher revenue and a higher payroll. They spend to what they can afford and the Sox do the same. I will grant that the Sox front office is fairly aggressive in citing the disparity to explain why they weren't involved in certain moves. The Sox can't afford to be in on every move. The Yankees can't really either - despite what some may think - but they are in more than the Sox.

Imgran touches on it.


There is a lot of overlap for certain positions where the Sox and Yankees both have needs. The Sox have to pick their battles. They can afford to spend, but they have to try to maximize value. I think this leads to some outrageous spending at times.

The #1 example of that being the posting fee for Matsuzaka. I recall reading a piece discussing John Henry commenting on the Beckett trade at a point where he was struggling. JH was reported to have said that he'd prefer to just spend money rather than give up young players. When you consider that the posting fee doesn't count against the luxury tax and it makes perfect sense that they'd go hard after Matsuzaka.

But my point is that the discussion over the Sox and the Yankees is that the Yankees have an advantage in terms of payroll. I don't know what the projected payrolls are for 2007. I have no issue with considering the posting fee in any calculations so long as each team accounts for it the same way. If the payrolls are the same then obviously there is no spending advantage. Other wise there is for the team that spent more.

Which in 2006 was the Yankees, by quite a lot.

I'd say they were obsolete from the start.



fwiw, since you quoted me, I agree. I have no problem with the amount the Yankees spend (or the amount the Sox spend). I have a problem with Yanks fans I know claiming that when it comes to spending, the Sox and the Yanks are on the same level, by themselves.

I would agree with Yankee fans bloviating about how much the Red Sox spend this offseason except for the hypocricy of it. If we're bad, how bad are they?

Excellent post.
Agree 100%.

I think alot of the "bloviating" you're referring to is misunderstood.
Pointing at Sox payroll is not done in a vacuum.
Most of the stuff said is backlash from previous moaning and groaning from the Sox front office and fans.
Yes, the Yankees have a financial advantage over everyone including the Sox.
The significance of that advantage has probably (given the aggressiveness of the Sox this winter) been a little overstated to the point where it's to blame for every move the Sox do and don't make.

I mean, honestly, what do you think a fair reaction from a Yankee fan to the opening post in this thread would be?

Personally, if I were to react, I'd go with a simple "So what?" (I'm not sure there's any real response to that.)

I know I don't care if any Mets, Angels or Dodgers fans carp about how the Sox spend.