Yankees, Dodgers Are Hit

With 2013 Luxury Tax Bill

Another year, another hefty tax bill for the New York Yankees, which will pay MLB $28.1 million in luxury taxes on the team's payroll for the 2013 season.

The Yankees were one of two teams to pay luxury tax bills for 2013, according to a person with knowledge of the calculations. The Los Angeles Dodgers will pay an $11 million bill. Both teams had payrolls of roughly $237 million, but because the Yankees are annual offenders, they must pay at a higher rate. The Boston Red Sox sneaked in just under the tax threshold, finishing the season with a payroll several hundred thousand dollars below the $178 million ceiling for 2013.

The $28 million hit will bring the total Yankee luxury tax payments to over $250 million since the inception of the luxury tax in 2003.

The Yankees are trying to get under the $189 million luxury tax limit for the 2014 season—beyond avoiding the tax itself, dipping under the threshold would allow them to take advantage of a number of incentives built into baseball's latest labor deal. But after several recent signings, the team is already drawing precariously close to the ceiling with holes remaining all over their roster.