The New York Yankees will likely surpass the luxury tax threshold in 2020 after the signing of super-star pitcher Gerrit Cole. Last season, the Bombers landed at $226 million, just over the limit, and being that they will earn the “repeat offender” title, there will be harsher monetary penalties.
…New York’s rate will rise from 20% to 30% on the first $20 million over, 32% to 42% on the next $20 million and 62.5% to 75% on any amount above $248 million. If the Yankees exceed $248 million, which now appears likely, their top selection in the June 2021 amateur draft would be dropped 10 places.