The Yankees have successfully reset their Competitive Balance Tax rate to zero after regularly qualifying for the maximum penalties. In 2017, the Yankees paid a Competitive Balance Tax penalty of $15.7 million on a $226.4 million payroll at a 50 percent tax rate. To spend or not to spend is the fundamental question for the Yankees when it comes to Machado. There will be complexities surrounding any contract with Machado whether it’s with the Yankees, Chicago White Sox, or Philadelphia Phillies. Every word and syllable uttered by Machado will be closely scrutinized by the Yankees’ brass who will be formulating opinions that could potentially earn or cost Machado $300 million.

Source: Forbes December 19, 2018 10:52 UTC