The Red Sox and Yankees got a nice Christmas gift from MLB as they were both hit with bills for the luxury tax that was established back in 2003.
The Red Sox were given a $6.06 million bill while the Yankees were handed a $23.88 million bill. This was the fifth straight year the Yankees have had to pay the tax, all totaled to a tune of $121.6 million. How many World Championships has it bought them? Zero, zip, zilch, nada.
This was the Red Sox fourth straight season paying the MLB tax man but they have only had to pay $13.86 million over that time. How many championships has it bought? Two, one in 2004 and one last season (2007).
The Red Sox 2007 salaries were listed at $163.1 million while the Yankees were at $207.7 million. The cap last year was $155 million. Since they were both over for at least the 4th time, they were taxed at 40% of the amount over the limit.
Only three teams in the history of the luxury tax have had to pay, the Red Sox, Yankees and the Los Angeles Angels of Anaheim back in 2004.
Bud wants the money to him by January 31, 2008.
