Luxury Tax Levied on Yanks, BoSox

Bronx Bombers owe a good chunk of change, but less than last year
By Katherine Thompson,  Newser Staff
Posted Dec 26, 2007 6:12 AM CST
Boston Red Sox pitcher Jonathan Papelbon might not be as thrilled to hear about his team's luxury tax bill as he was about winning the 2007 World Series. (AP Photo/David Zalubowski, FILE)   (Associated Press)
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(Newser) – The Yankees owe Major League Baseball $24 million of competitive-balance "luxury" tax on contracts that pushed the team's payroll over the $148 million limit, AP reports. The might seem like a lot to shell out for the privilege of paying Roger Clemens to go 6-6, but it's actually less than last year.

Also cutting a check to the commissioner's office are the Red Sox, whose $6 million tax may seem well worth it to those Bostonians still basking in the glow of World Series victory. Boston has owed a total of $14 million since the luxury tax started in 2003; the Yankees have racked up $122 million in charges in that time.