Yankees Pay $25 Million in Tax
One event more than any other is responsible for the hard-line approach of the NHL Owners in the current lockout. It was watching the Yankees pay $11.78 million in luxury tax for exceeding the salary limits, then turning around and increasing their salary by trading for Alex Rodriguez. So, this year, the Yanks got a bill for $25 million. And, yes, they've gone ahead and increased their payroll again. New York has estimated, actually, that they'll pay $85 million in luxury tax next year.
This make ones thing absolutely clear. Luxury taxes do not work. At all. Salary caps do, as evidenced by the NFL, the most successful professional sport by a landslide. The NHL owners will not settle for anything less than a salary cap. And rightly so.
One event more than any other is responsible for the hard-line approach of the NHL Owners in the current lockout. It was watching the Yankees pay $11.78 million in luxury tax for exceeding the salary limits, then turning around and increasing their salary by trading for Alex Rodriguez. So, this year, the Yanks got a bill for $25 million. And, yes, they've gone ahead and increased their payroll again. New York has estimated, actually, that they'll pay $85 million in luxury tax next year.
This make ones thing absolutely clear. Luxury taxes do not work. At all. Salary caps do, as evidenced by the NFL, the most successful professional sport by a landslide. The NHL owners will not settle for anything less than a salary cap. And rightly so.
