Thread: Luxury Tax
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Old 12-07-2013, 12:27 PM   #9
RchW
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Location: Toronto ON by way of Glasgow UK
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Quote:
Originally Posted by NYY #23 View Post
There is no salary cap though. The $189 mil is the luxury tax number, and the Yankees have exceeded it every year. It works on a sliding scale, so the first time you exceed it you pay something like 17% for the amount you are over. The Yankees are up to 50%, so their reason for going under was to reset their luxury tax rate, so when they go over next year they pay 17% again.

You are right but I think PSU has a good point to see how this would work. What we really need is a better way to replicate team behavior vs market. See below. It seems there is no logical connection between team market and the budget and payroll. Look at Pittsburgh then SF SD and Arizona. Why is SF and their big market the same budget as Pittsburgh's small market? Why are the LA Angels equivalent to SD?

I know I could edit finances but it would be better for me if I could choose a financial model and have it be at least consistent in terms of market size.

Oops I may have gone a little OT.
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