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Luxury tax breakdown

Posted: Friday August 30, 2002 7:20 PM

NEW YORK (AP) -- The amount of luxury tax each team would pay under the tentative deal agreed to by players and owners if their payrolls remained at the same figures that are estimated for 2002 (all figures in millions):

Baseball Luxury Tax, 2003-06
The luxury tax provisions agreed to Friday by baseball owners and players. The tax will be levied on the portion of a team's payroll above a threshold, and the tax rate for a team would vary depending on the number of times it exceeded the threshold. Figures for thresholds are in millions of dollars. Figures for rates are in percent).
Threshold (Figures in millions of dollars)
2003  2004  2005  2006 
117  120.5  128  136.5 
Tax Rate (Figures are percentages)
  1st time  2nd time  3rd time  4th time 
2003  17.5           
2004  22.5   30        
2005  22.5   30   40     
2006  0   40   40   40  
Note: Payrolls calculated using average annual values of contracts of players on 40-man rosters, earned bonuses and $9 million per team for benefits.

Team  Payroll  Tax 
N.Y. Yankees  $171.1  $9.5 
Texas  $131.4  $2.5 
Los Angeles  $118.8  $0.3 
Team  Payroll  Tax 
N.Y. Yankees  $171.1  $15.2 
Texas  $131.4  $3.3 
Team  Payroll  Tax 
N.Y. Yankees  $171.1  $17.2 
Texas  $131.4  $1.4 
Team  Payroll  Tax 
N.Y. Yankees  $171.1  $14.0 

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