21 December 2009

$26 MIL LUXURY TAX? MAYBE NOT.

The story is out that the Yankees have been hit with a luxury tax of nearly $25.69 million according to The Associated Press.

But, how much of that $25.69 million will the team really pay?

As reported by this blog back in April, the answer could be ZERO.

According to Forbes.com:

"The new stadium also means the Yankees will have to hand over a lower percentage of their revenue to rivals.....MLB permits teams to deduct stadium-operating and debt expenses from revenue before calculating the amount the league will take from them to subsidize other teams.....In the new stadium the Yankees' deductible expenses will be around $100 million, enough to wipe out the windfall in revenue."

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