where does luxury tax money go in baseball
Luxury tax (sports) The luxury tax is separate from revenue sharing, which is a system to balance out the income distribution between large and small market teams by dividing money from merchandise sales and media contracts. The money generated from the luxury tax is not distributed to the rest of the league, as is the case with the NBA, but rather is used for other purposes. The first $2,375,400 and 50% of the remaining total are used to fund player benefits, 25% goes to the Industry Growth Fund, and the remaining 25% is used to defray teams' funding obligations from player benefits.[6]
Jackie Robinson In 1956, Robinson had 61 runs scored, a .275 batting average, and 12 steals.[153] By then, he had begun to exhibit the effects of diabetes and to lose interest in the prospect of playing or managing professional baseball.[181] Robinson ended his major league career when he struck out to end Game 7 of the 1956 World Series.[188] After the season, Robinson was traded by the Dodgers to the arch-rival New York Giants for Dick Littlefield and $35,000 cash (equal to $315,043 today). The trade, however, was never completed; unbeknownst to the Dodgers, Robinson had already agreed with the president of Chock full o'Nuts to quit baseball and become an executive with the company.[189] Since Robinson had sold exclusive rights to any retirement story to Look magazine two years previously,[189] his retirement decision was revealed through the magazine, instead of through the Dodgers organization.[190]