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