The Biz of Baseball has been updated with new data…
For those following MLB, the Competitive Balance Tax, or as it’s commonly known as the Luxury Tax, has been a much discussed topic, but often misunderstood.
The tax is baseball’s soft cap. Pass the threshold number, and pay a tax figure for every dollar over the threshold.
It’s often thought of as part of revenue-sharing (it isn’t), with much going back to the players in the form of benefits, as well as into an Industry Growth Fund.
The Yankees have paid out nearly all of it… From 2002 to the present.
But, The Biz of Baseball has now updated the site to show the Luxury Tax collected during a different model that was part of the 1997-’99 system.
Try this: during that time, it wasn’t the Yankees that had paid the most, it was the Orioles (remember, the club from Baltimore at one point had the highest player payroll in all of baseball).
That’s not surprising? Try another: the Florida Marlins paid Luxury Tax in 1997, the year they won the World Series.
Who else has been dinged? (You know some because I just mentioned), but there are a total of 10.
Here’s how the site’s been updated:
- We are still tracking the yearly totals from 2002 to the present
- We’ve added the 1997-99 Luxury Tax totals
- We’ve added a table totaling up the all-time collected money across both systems that also shows the percentage of the total collected (for the record, $243,078,709 in Luxury Tax has been collected, and will surely pass $250 million this year).
- Each table has a corresponding bar graph
- Each table shows total for each club and total paid out in each year
To see the data, select MLB Luxury Tax Totals, which can also be found to the left of any page on The Biz of Baseball under “Resources”
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Maury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey, as well as a contributor to FanGraphs and Forbes SportsMoney. He is available for hire or freelance. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.
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