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The luxury-tax implications of Aroldis Chapman’s Yankees extension

The Yankees stayed relatively payroll neutral when it comes to the luxury tax with their extension for Aroldis Chapman.

Chapman could have opted out of the final two years at $30 million left on his five-year contract by midnight Saturday. Instead, he accepted a one-year extension in 2022 for $18 million.

So that means he has three years at $48 million now left on his contract or $16 million on average per year. And the luxury tax formula takes the average value of a contract.

However, the average value on Chapman’s previous five-year, $86 million dollar pact was $17.