The Giants’ enormous payroll will have them paying the luxury tax for 2016, along with five other MLB teams.
According to a report in the Associated Press, San Francisco will pay $3.4 million for breaking the $189 million threshold set by MLB for 2016. The Giants are paying at a 30 percent rate, with the team being over the designated threshold for the second straight season. However, it already seems like a given that the Giants will be once again over the threshold of $195 million in 2017.
Back on Dec. 5, general manager Bobby Evans discussed the potential impact of the tax for this season in an interview with Tolbert & Lund.
“This will be the third year in a row we’ve been over that CBT limit and therefore, we have to pay tax of 50 percent,” Evans said. “We have to be mindful that now for every dollar we spend, we are spending a $1.50.”
In news that is likely to interest Giants fans, the Dodgers had largest tax bill at $31.8 million. The other teams that paid luxury taxes for this past season include the Yankees, Red Sox, Tigers and Cubs.