The Yankees to pay $29 million in luxury tax

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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.