This offseason & the following offseason there will be a lot of talk about the $189 million payroll limit that the Yankees will try to get under by 2014 and the impact that it has on the moves the team will make. A lot of people are unclear as to what this limit really means, so I thought I would write this to help educate fans on how the limit is calculated & how the current Yankee team is impacted by those calculations.
The CBA & Luxury Tax Calculations
The Collective Bargaining Agreement signed by the MLBPA & Ownership is what governs the interactions between players & management in Major League Baseball. Last offseason a new CBA was signed which introduced new wrinkles into the luxury tax agreement that has the Yankees attempting to get under the limit for the first time in a decade. Here are the basics:
- The luxury tax limit for 2013 is $178,000,000.