June 16, 2021

Red Sox owe team record $13.4M in luxury tax; Yanks, Cubs also sent bills (ESPN)

NEW YORK — Boston will pay a Red Sox record $13.4 million luxury tax after failing to make the playoffs and the New York Yankees finished with a $6.7 million bill, likely a fraction of what they will pay next year.

Three teams owe tax, according to end of year figures sent to clubs Wednesday and obtained by the Associated Press. The Chicago Cubs must pay $7.6 million following a season that ended with September fade and no postseason berth.

New York has run up a total of $348 million in tax since the payroll restraint system began in 2003, owing money in each year except 2018. The Los Angeles Dodgers are second at $150 million, followed by the Red Sox at $50 million and the Cubs at $11 million.

This year’s initial tax threshold was $206 million, counting payrolls by average annual values and including earned bonuses, adjustments for cash transactions, option buyouts and just over $14 million per team in benefits.

Among regular payrolls, which include salaries, prorated shares of signing bonuses and earned bonuses, the Red Sox topped the major leagues for the second straight season at $228 million. The Yankees were next at $226 million, followed by the Cubs ($220 million), World…

Read “Red Sox owe team record $13.4M in luxury tax; Yanks, Cubs also sent bills” at ESPN