The Yankees to pay $29 million in luxury tax


Bob Nightengale of USA Today reports that the Yankees luxury tax bill for this year is going to be $29 million. Which is more than the Astros’ entire payroll. Which is special.

You can read his whole store for the politics and mechanics of the luxury tax. But the takeaway here is that, for as much grief as the Yankees are taking for wanting to get their payroll under $189 million next year, thereby avoiding the luxury tax, the economic incentive for them to do so is really freakin’ compelling. They’re paying a 50% tax rate every year they go over the luxury tax threshold now. Just one year beneath it and it resets to 17.5%.

That might make next year pretty ugly. But it’ll make the years beyond that a bit easier for Brian Cashman.

Royals sign Justin Grimm to a one-year, $1.25 million deal

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The Royals signed free agent reliever Justin Grimm to a one-year, $12.5 million deal, the club announced Sunday. Grimm can earn up to $300,000 in additional incentives, the specifics of which have yet to be disclosed.

The 29-year-old right-hander was released by the Cubs on Thursday. Prior to his release, he was slated to make $2.2 million after losing his arbitration case against the team. Grimm polished off a five-year campaign with the Cubs in 2017 and produced an unimpressive 5.53 ERA, 4.4 BB/9 and 9.6 SO/9 over 55 1/3 innings.

In a corresponding move, right-hander Sam Gaviglio was designated for assignment. He pitched in five games for the Royals this spring, racking up 13 hits, eight runs and seven strikeouts in seven innings.