The New York Yankees finished the 2012 season with a payroll of $222.5 million dollars and because they blew through the $178 million threshold, the Yankees will reportedly owe MLB a luxury tax of $18.9 million according to ESPN New York.
It would be the 10th straight season the Yankees have paid a luxury tax to Major League Baseball for going over the luxury tax limit. Over that 10 year period, the Yankees have paid $224.2 million to the league in luxury taxes.
The Boston Red Sox squeaked under the threshold last year after trading away heavy contracts to the Los Angeles Dodgers. The Los Angeles Angels and Philadelphia Phillies were also positioned close to the luxury tax threshold by spending $176.7 million and $174.5 million respectively.
The league includes salaries for players on the 40-man roster, any exchange of cash in trades and each team's annual benefit pay out when calculating whether they'll pay a luxury tax in a given season.