BOSTON, MA - OCTOBER 28: From left, newly-hired chief baseball officer for the Boston Red Sox Chaim Bloom sits with fellow executives Sam Kennedy, Tom Werner and John Henry during an introductory press conference in the State Street Pavilion Club at Fenway Park in Boston on Oct. 28, 2019.

Report: Red Sox, Yankees, Cubs to pay luxury-tax penalties

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Boston Globe / Getty

The Boston Red Sox, New York Yankees, and Chicago Cubs will pay luxury-tax penalties for 2019, according to year-end figures obtained by Ronald Blum of The Associated Press.

After topping the majors with $228 million in payroll in 2019, Boston must pay a team-record $13.4 million in penalties. The Red Sox won the World Series in 2018 but finished third in the American League East this past season. They fired president of baseball operations Dave Dombrowski in September.

The Yankees, who routinely have one of baseball's largest payrolls, must pay a $6.7-million bill, while the Cubs owe $7.6 million, according to Blum.

This year's tax threshold was $206 million. That figure accounted for the average annual values of payrolls including earned bonuses, adjustments to cash transactions, buyouts, and other additional team benefits.

The luxury-tax threshold starts at $208 million in 2020.

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