MLB announced luxury tax payments this week, and the Sox and Yankees were the only two teams contributing for 2010. The Sox contributed $1.5M based on about $177M in payroll and health expenses (22.5% on the $7M in money over $170M), while the Yankees paid $18M (40% on the $46M in money over $170M). So the team's payrolls played out like this, in total dollars:
- Red Sox – $178.5M
- Yankees – $234M
The Red Sox were hit by the tax for the first time since 2007. The Yankees reduced their tax burden from 2009 by a hefty margin but still managed to outspend the Sox by the GDP of Kiribati.