Monday, July 16, 2012

Extend Cano & Granderson?

Brian Cashman Said What?

The Yankees have a strict policy not to extend players during the season and before their current deals expire. The Yankees brass is considering breaking this rule, and for good reason, for both Curtis Granderson and Robinson Cano.

See the Yankees are trying to get under the $189 million threshold for payroll by the 2014 season and the new Collective Bargaining Agreement (CBA) says that your salary is based on an Average Annual Value (AAV) and not what you are making this season. For example Alex Rodriguez's contract is heavily front loaded with Arod making as little as $20 million at the end of his deal but his AAV has been and always will be $27.5 million. The AAV is what counts against the luxury tax threshold. While this does not work in our favor for Alex, it can work in our favor for both Granderson and Cano.

As it stand now, including club options, Cano's AAV is only $9.5 million because of him only making $3 million in 2008, $6 million in 2009, $9 million in 2010, and so on and so on. If the Yankees choose to extend Cano's contract for, let's say for simplicity sake, $20 million a season for 5 more season Cano's AAV would be $14.28 million. If we let the contract run out and re sign him as a free agent to that same 5 year $100 million dollar contract then Cano's AAV becomes $20 million. Extending Cano now saves us roughly $5.5 million towards the 2014 goal AND allows us to keep him.

Curtis Granderson's AAV as it stands now is a measly $6.88 million because of him only making $1 million in 2008, $3.5 million in 2009, $5.5 million in 2010, so on and so forth. Let us say, again for simplicity sake, we extend Granderson for that same 5 year $100 million contract that we gave Cano. Granderson's AAV would only be $12.84 million as opposed to the $20 million that he would garner if he were re signed as a free agent. That is a $7+ million savings right there.

If we extend both Cano and Granderson NOW instead of letting them technically hit free agency we can save around $13 million bucks AAV, stand a much better chance at getting under the $189 million tax threshold, AND keep our two best hitters in the lineup. Sounds like a no brainer to me Cash... so get it done. 

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