Major League Baseball (MLB) has been in news for its latest talk of contraction of players and this has led analysts to look at MLB’s earning, revenue sharing and luxury tax. It is well known that for many years Yankees and Red Sox have been extremely popular and highest earning teams. It doesn’t really come as surprise that they are highest contributor to revenue and luxury tax as well. In fact for few past years The Yankees are the only regular luxury tax payers. Intriguing isn’t it? Apparently, it is because only their payrolls actually come under the luxury tax net.
It does seem an unfair that most popular and best baseball team in the world is the only team contributing to MLB revenue through luxury tax in such a big way. So while every team is affected by revenue sharing it is only Yankees who are doubly affected because they need to shell out luxury tax as well. It’s a price for being popular and highest paid teams, I guess. Take a look at MLB luxury tax chart to get a quick view about which teams have had to shell out luxury tax and one can easily see highest payers have been The Yankees. Not that they are complaining because this just proves they are the only teams on the top! In fact they make a whopping 91.6 percent contribution to luxury tax system in spite of rise in luxury tax threshold.
One just hopes MLB will try to reinvent baseball game in a big way so that many more teams will become highest revenue sharers and luxury tax payers for only then game will get really competitive and interesting!