Showing posts with label luxury tax. Show all posts
Showing posts with label luxury tax. Show all posts

Friday, January 12, 2018

Yankees Dreams Do Not Equal Reality...


We may want it all but…

We’re the mighty Yankees. We should have every available superstar, right? To listen to some fans, that seems to be the case. But in reality, this is a business and the magical figure of $197 million to reset luxury tax penalties may as well be a hard and fast salary cap. Team Hal will do whatever it takes to stay under that mark.


It’s nice that free agent pitcher Yu Darvish has narrowed his choices to six teams, including the Yankees. But in the grand scheme of things, it means nothing. The Yankees are not going to pursue Darvish at this point given the pitcher’s desire for a contract in excess of $20 million per year annually.

Yesterday, Michael Kay reported on his show that the Yankees had previously offered Darvish 7 years at $160 million but had given him a short window (48 hours) to accept. When Darvish didn’t bite, the Yankees allegedly pulled the offer. No offense to Michael (he’s one of my favorites), I struggle with the thought the Yankees really made that type of offer with the current roster construction and cost. If the Yankees really did make that level of offer and Darvish did not accept, he was foolish in this stagnant market.

I really liked Yu Darvish when he first came to the United States and had been hopeful the Yankees would sign him before he was snagged by the Texas Rangers. But now, while I agree he is an upper echelon pitcher, I don’t feel that he’d be the right fit. The primary reason is money. The reality is that the Yankees will keep 2018 payroll below the $197 million threshold. Even if the Yankees moved contract(s) to make room, I don’t think it would be the wisest path to add a multi-year, greater than $20 mil per year, contract for a pitcher on the wrong side of 30. If Darvish was the missing piece to guarantee a World Series, it would be one thing but he’s not. The only thing that I like about a Darvish signing is that he wouldn’t cost multiple top prospects like a trade for Gerrit Cole would. The reality is that arms like Justus Sheffield and Albert Abreu could be out-performing Darvish in the big leagues within the next few years.   

While Manny Machado would look great in Pinstripes, the reality is that he will not be part of the 2018 Yankees. At the moment, the Arizona Diamondbacks appear to be the frontrunner…if the Baltimore Orioles decide to trade their very talented third baseman. The D-Backs, if they acquire Machado, would move him to his position of preference (shortstop). While I think Machado should stay at third (for the sake of his surgically-repaired knees), you wonder if shortstop becomes Machado’s top priority when he hits the free agent market after the upcoming season. If so, the Yankees will not be in play given the team already has a strong shortstop. Didi Gregorius, the unsung hero of the 2017 Yankees, is not going anywhere.

Photo Credit: Getty Images
I am not opposed to the Yankees filling second and third bases with Gleyber Torres and Miguel Andujar, respectively. I just don’t feel the Yankees would entrust two critical positions to rookies at the same time.  

GM Brian Cashman is talking like Torres could break camp as the starting second baseman but it makes the most sense to keep him at Triple A for the first few weeks to delay his MLB service time and push his free agent eligibility back a year. Hal Steinbrenner, the accountant, is never going to go hog wild with payroll, even if he is successful in resetting luxury tax penalties this year. Unlike his father, he will always be concerned about the bottom line. I am comfortable with Tyler Wade and Ronald Torreyes covering second until Torres is ready. I buy into the opinion that we didn’t see the real Wade last year and he could be more like the player he was for the Scranton/Wilkes-Barre RailRiders this year. Training camp will be very critical for him. But, really, there’s no question second base belongs to Torres regardless of what Wade is able to accomplish.  


As for third, Andujar, if he isn’t traded, will be watched very closely at training camp as he attempts to disprove the perspective that his defensive game hasn’t caught up with his bat.  Another name that has been suggested, Kyle Holder, seems to be a stretch. Holder is 23 but the highest he has played was at High A Tampa last year. It would be very difficult to make that type of leap for the defensive wizard. He’s not a power bat but in the Yankees lineup, he would not need to be. Realistically, I think Holder is still a season or two away. My opinion remains that the 2018 Yankees third baseman is not presently on the roster. But if I am wrong and Andujar heads north to the Bronx with the big league club in late March, so be it. I’ll be a fan and supporter.


I was glad to see the Yankees settle two of their potential arbitration cases yesterday when they signed Tommy Kahnle and Aaron Hicks to one-year contracts for $1.325 million and $2.825 million, respectively. With today’s deadline to exchange arbitration figures, it’s possible that we could see other signings. The other arbitration eligible players are Didi Gregorius, Dellin Betances, Sonny Gray, Adam Warren, Chasen Shreve and Austin Romine. The Yankees want to avoid contentious battles like the one with Dellin Betances last year, even though they won. Of the players, I’d really hate to see Gregorius or Gray go to arbitration. They are such huge keys for the upcoming season. The worst way to start the year would be for them to go into a room to hear about their faults from the team’s perspective.  

My general sense is that the Yankees will make at least one other significant move before training camp but it’s equally possible that ‘what you see is what you get’ with the current roster. I expect other non-roster invitees beyond infielder Jace Peterson but it’s hard to classify any of those as “significant”.  

Let’s see what today brings…

Go Yankees!

Saturday, January 6, 2018

Ready, Set, Stall...


The Most Boring Off-Season Ever…

It’s kind of funny to say that this has been one of the slowest Hot Stove Leagues in recent memory, especially when your team acquires the best slugger on the planet, but I can’t remember the last time the majority of the top free agents were unsigned in January.

The Yankees never figured to be big players in the free agent market, given their desire to keep the ‘Alex Rodriguez-freed’ payroll under the luxury tax threshold of $197 million for reset purposes. But then the Los Angeles Dodgers made their big salary relief trade with the Atlanta Braves which gave them the same opportunity as the Yankees to reset their luxury tax rate so you have baseball’s two biggest spenders on the sidelines.  


My personal hope is that the slow free agent market leads Todd Frazier back to Pinstripes where he belongs. Of course, rumors circulated yesterday that the Yankees had been back in touch with the Baltimore Orioles about third baseman Manny Machado. I am not convinced the Orioles would trade their best player to the Yankees despite his impending free agency, but conversely, I am not sure the Yankees should give up some of their best prospects for a guy they could sign as a free agent next fall. I wouldn’t want to give the O’s the bullets to reload. But then again, if the O’s make a trade this winter, they’ll bring in quality talent from somewhere. As long as Machado is on the table, it probably keeps any potential deal with Todd Frazier on ice (no pun intended for those of you in New York and New Jersey).  

Mark Prior has found his way to the Los Angeles Dodgers as their new bullpen coach, replacing Josh Bard who decided to take a seat on the Yankees bench next to new manager Aaron Boone. The Yankees’ one-time top draft pick (he didn’t sign in 1998) and former Chicago Cub was most recently the minor league pitching coordinator for his hometown San Diego Padres. Prior attempted to make the transition to a relief pitcher in the Yankees organization during the 2011 season but could never capture the potential that was once promised to him through a series of arm injuries. I hope that he finds greater success with his coaching career.  


Some teams have been very active with minor league contract signings carrying training camp invitations, but until yesterday, the Yankees had been quiet. It changed when they signed former Atlanta Braves infielder Jace Peterson to a minor league deal on Friday. Peterson has a high pedigree (he was once a first-round draft selection for the San Diego Padres) but he’s never been able to hit in the Major Leagues. He found his way to the Braves for the 2015 season but underwhelmed the team as its starting second baseman that year. The career .234 hitter was released by the Braves last month when he was non-tendered in advance of arbitration. I can’t see him as more than training camp fodder and help with the Scranton/Wilkes-Barre RailRiders, but you can never have enough competition for Major League jobs. Good luck to Peterson as he attempts to find his place with his third MLB organization. New coaches, new scenery….who knows, crazier things have happened. In a bit of irony, Peterson made his MLB debut during the 2014 season when former and now current Padres third baseman Chase Headley was placed on the DL. Peterson seems like this year’s Pete Kozma signing to me. If he could only hit, he looks like a version of Austin Romine’s brother Andrew with an ability to play multiple positions.

Jace, just a note, please don’t scratch the big guy…

Photo Credit: Steve Mitchell-USA TODAY Sports
The New York Post ran an article a couple of days ago indicating that GM Brian Cashman is prepared to go into the season with youngsters at second and third, meaning Gleyber Torres (or Tyler Wade) and Miguel Andujar. I still find it difficult to believe that the Yankees would entrust both critical positions to youth and inexperience (at the MLB level) at the same time. The Post article included Cashman’s words “if the market changes, we’re prepared to adjust” which shows that this is just a waiting game and Cashman is hoping for prices to fall.  

I am excited about Gleyber Torres and the future of second base in his hands. I’ve seen so many say that he should open the season as the starting second baseman. For as much as I love the guy, the Yankees MUST delay the start of his MLB service time to pick up an additional year before he hits free agency.  That only means that he’ll spend a few weeks in Moosic, PA focusing on solely the nuances of second base before hitting the main stage in the Bronx. It will be well worth the wait for so many reasons. At this point, it’s just fine-tuning but for a guy coming off Tommy John surgery, even a position player with his non-throwing arm, a few weeks in Triple A would be beneficial. In the interim, Ronald Torreyes and Tyler Wade deserve the opportunity to keep the position warm for Torres.

Photo Credit: Andrew Savulich-NY Post
The guys over at NJ Advance Media for NJ.com do a great job covering the Yankees. Randy Miller posted a column today featuring a scout’s take on top Yankees prospects. It is well worth the read. As a huge fan of pitching prospect Albert Abreu, I thought the scout’s take on the young right-hander was excellent: “I love him. You’re going to like this kid. I saw him in the Fall League. He was throwing 91-97. He sat 94. He’ll show you a plus curveball at times that is tight with depth. His changeup needs some refinement, but it has a chance to be a plus pitch in the future. He’s aggressive. He gets swings and misses. He’s pretty good with a good body. And he’s a good makeup kid. His delivery gets out of whack at times and it affects his stuff. When he stays square and direct to the plate and he’s working downhill, he’s good. I give him a chance to be a No. 3 starter, a middle-of-the-rotation type guy. If everything comes, he has an outside chance to be a No. 2 starter. Based on what I’ve seen, I like him better than Chance Adams.” I know that Justus Sheffield is going to be a great Yankee, but the scout’s last line about Abreu is the very reason that I’d gladly give up Chance Adams in a trade for a proven MLB starting pitcher. I am very high on Abreu and I am excited about his future in pinstripes.  


It’s such a great time to be young and a Yankee for so many of these guys. Who wants to join?…

Photo Credit: Getty Images
Go Yankees!

Wednesday, November 15, 2017

Listen, I’m All for Getting Greedy But We Are NOT Getting Giancarlo Stanton


How is that for a little bit of irony? The guy who owns The GREEDY Pinstripes and the guy screaming up and down to “get greedy” and to sign this guy and that guy is about to make a post about how the New York Yankees are NOT going to get probably the top player available this winter via trade. Yes, it’s true and no, hell has not frozen over. I have always been greedy but that doesn’t mean I have always been levelheaded at the same time. With that in mind I am prepared to explain to you why the New York Yankees will not acquire Miami Marlins slugger Giancarlo Stanton this winter, even if it means that Stanton heads to the Boston Red Sox.  

The New York Yankees set out years ago to get under the luxury tax threshold and while losing Robinson Cano to the Seattle Mariners and the domino effect of big signings that followed including the signings of Carlos Beltran, Brian McCann and Jacoby Ellsbury put that thought process on hold the plan is back and is now in full effect. This is the year that the Yankees get under and stay under the threshold for the entire 2018 season thus resetting the penalties that the team pays for every dollar they spend over the luxury tax threshold just in time to blow by the threshold again in 2019. Remember, Bryce Harper and Manny Machado lead a very strong free agent class next season that the Yankees are positioning themselves to take advantage of next season. Stanton will not win the Yankees a World Series Championship alone in 2018 and Stanton will all but keep the Yankees “financially strapped” and away from those big time free agents.  

Now I want to say that I believe Stanton is an amazing talent, an amazing selling point and attraction to the fans and that I personally, Daniel Burch the fan, would love to see Stanton in pinstripes playing alongside Aaron Judge next season. I would, but I cannot fathom the Yankees not only giving up the major prospects that it would take to acquire Stanton but I also cannot see the team being willing to pay the richest contract in Major League Baseball again just a month or two after getting out from under the last richest contract in MLB history before Stanton’s mega deal and a few other notable deals since including the Zack Greinke and Clayton Kershaw deals. It’s just not going to happen. Period. 

Stanton is 28-years old and is owed $295 million over the final ten seasons of his contract. No, that is not a typo. Stanton has ten years LEFT on his contract. Stanton has a full no-trade clause, something that would limit the Yankees down the road if he were to… I don’t know… not live up to the deal a la Alex Rodriguez, and would be under contract through his age 38 season. This would be a huge undertaking for a team that can usually afford to take these chances, but the team cannot here this offseason. They just can’t. The Yankees are looking to get under the $197 million tax threshold and giving Giancarlo Stanton $25 million (his AAV is much higher) just doesn’t fit the budget and is fiscally irresponsible for the team. 


Pipe dreams are nice every once in a while, but sometimes they have to remain just that, dreams. Giancarlo Stanton will not be a New York Yankees in 2018, period. Next question. 

Tuesday, November 7, 2017

Shohei Otani Is The Greatest Luxury


Shohei Otani is a luxury. However, he's not like every other luxury I've talked about.

See, normally, when I talk about a "luxury" I'm referring to somebody that would be nice for the Yankees to have, but the cost of acquiring said "luxury" may very well be too much. Take for example Bryce Harper...

How great would it be for the Yankees' outfield in 2019 to consist of Aaron Judge, Clint Frazier, and Bryce Harper? Just imagine a lineup with those three players, along with Gleyber Torres, Didi Gregorius, Greg Bird, Gary Sanchez, and Miguel Andujar. Let's just see something....

1. Gleyber Torres
2. Aaron Judge
3. Bryce Harper
4. Gary Sanchez
5. Didi Gregorius
6. Greg Bird
7. Clint Frazier
8. Miguel Andujar
9. Aaron Hicks

When writing that lineup something popped out to me, but I'll talk about that later.

Like I was saying, as great as that lineup would be, adding Bryce Harper to it is not going to be cheap. We're talking about a guy who's next contract will be around $450 million. What makes him a "luxury" is the fact is he may not be necessary for the Yankees to win. Take Harper out of that lineup and you have this...

1. Gleyber Torres
2. Aaron Judge
3. Gary Sanchez
4. Didi Gregorius
5. Greg Bird
6. Clint Frazier
7. Miguel Andujar
8. Aaron Hicks
9. ???

That's still a very good lineup. Compared to this past season's lineup, which if you don't remember was pretty good, all I've done is replace Starlin Castro with Gleyber Torres, Brett Gardner with Clint Frazier, and Chase Headley/Todd Frazier with Miguel Andjuar. And that's without knowing who would DH, or rotate with others in that spot.

Getting back to Shohei Otani, though, let's see what a starting rotation would look like with him...

1. Luis Severino
2. Sonny Gray
3. Masahiro Tanaka
4. Shohei Otani
5. Jordan Montgomery

That's ridiculous. That rotation doesn't need a top ten offense to support it, let alone a top three offense. Even without Otani, and assuming the Yankees would simply bring back CC Sabathia, we'd have this...

1. Luis Severino
2. Sonny Gray
3. Masahiro Tanaka
4. CC Sabathia
5. Jordan Montgomery

Even without Otani, or heck... Sabathia, on board many people are saying the Yankees' rotation is championship caliber. That's why I say Shohei Otani is a "luxury", and not a "necessity". But here's what makes Shohei a totally different type of "luxury"... money.

This may be the only time in the history of baseball that a team can add such a great player, or at least a top prospect, without giving up much of anything. Even with the posting fee the Yankees will likely only have to pay in the neighborhood of $22.5 million to have Otani on their team in 2018. You're not going to get anyone like Otani in free agency for that little, nor are you going to be able to acquire a guy like Otani in a trade without giving up a nice package of players and/or prospects.

Oh... lol. While they would have to shell out about $22.5 million, since Otani's contract would be a minor-league deal that $2.5 million outside of the posting fee would simply be a bonus, like those given to players in the amateur draft. The Luxury Tax hit for the Yankees would be the league minimum.

The funny thing is that I haven't even talked about what he could do for the offense.

In short, Shohei Otani is going to be the cheapest luxury in the history of Major League Baseball. Maybe in all of sports.

Thankfully, I believe the Yankees will do everything they can to get Otani. And anyone that doesn't think they should is, without a doubt, out of their minds.

Tuesday, August 1, 2017

There's No Doubt About This Trade

The majority of Yankees fans and members of the media like the trade for Sonny Gray for the Yankees. That's not to say they don't like the deal for Oakland, but who cares about them? Am I right? You're here for the New York freakin' Yankees.


As I was saying, most people not only like that Gray is a Yankee, but they like the way he became a Yankee. If you've been locked in a cellar for the past 20 hours, let me catch you up to speed...

The Yankees and Athletics agreed to a trade yesterday that sent Sonny Gray to New York, while sending prospects Jorge Mateo, Dustin Fowler, and James Kaprielian to Oakland.

First thing's first, acquiring Sonny Gray is a good thing for the Yankees. Since his MLB debut in 2013 (he's still just 27 years old, by the way), Sonny has started 112 games, putting up an ERA of 3.42 and WHIP of 1.200. He's averaged just under three walks every nine innings, while striking out a little under eight batters per nine. By the way, those numbers include his injury riddled 2016, in which he had career worsts in all four of those statistics.

That injury history refers to Sonny going on the disabled list last May due to a strained right trapezius muscle, and then again in August due to a strained right forearm. Sadly that wasn't it as Gray missed all of April this season due to a strained right shoulder (he was not put on the disabled list, but instead assigned to the minors for rehabilitation).

So acquiring Gray does not come without some risk, especially since all of those injuries involve his throwing arm. Thankfully, he's proven that as long as he's healthy he's a starter that you can run out there every five days and feel good about your chances of winning. Which is something this year's team needs in order to win the American League East, and do a little more damage in the postseason.

Another good thing is that Sonny is just an arbitration eligible player, and will not be a free agent until after the 2019 season. Fangraphs values Gray at $17.7 million so far this season, but he will make just $3.575 million. That's a gigantic return on investment. And while Sonny will surely get a raise next year, it will go a long way into the team finally reaching it's goal of getting under the Luxury Tax threshold.

There's no doubt that it's a good to great thing bringing Mr. Gray on board. However, when valuing his acquisition, you must also look at what it cost to get him.

"This total could hurt."

I touched on this Friday, where I pointed out that the outfield for the future is set, and then some. Clint Frazier and Aaron Judge have the corner spots locked down for at least another five years. Center field is a bit of a question, but not in a bad way. I'd like to see Brian Cashman find a way to move him, but Jacoby Ellsbury can play CF, and is signed through 2020. Brett Gardner's contract runs through next season. And Aaron Hicks, who is not too far from returning from the disabled list, won't be a free agent until after the 2019 season. And that doesn't include the fact that I really want the Yankees to sign Bryce Harper when he becomes a free agent after next season (unfortunately, Bryce hasn't played CF since 2015, but we'll figure that out once he's signed).

Oh, and the Yankees still have Estevan Florial, who is probably two or three years away from being MLB-ready. Not to mention Billy McKinney, who has been hitting really well since getting promoted to AAA Scranton/Wilkes-Barre.

So the losses of Mateo and Fowler should not lead to any trouble at all.

Now for the starting rotation of the future, which has at least one question, making the loss of possible future starter James Kaprielian hurt a bit.

Gray won't be a free agent until after the 2019 season, while Luis Severino and Jordan Montgomery won't be a free agent until after the 2022 season. After that the team may have Masahiro Tanaka through 2020 if he doesn't opt out of his contract after the season (I could see the Yanks re-signing him even if he does opt out). That leaves one more spot for 2018, which could be filled by CC Sabathia (he's been mentioned as a candidate for a one year deal for 2018). If not CC, then there's Chance Adams, who's been killing it at Scranton/Wilkes-Barre. Or even Domingo Acevedo, who was a beast for Trenton, and will join Scranton/Wilkes-Barre here soon. Then there's Justus Sheffield, who is not far from the Majors as he's spent all of 2017 at AA Trenton. A little further down the line is highly regarded pitching prospect Albert Abreu. That's still a ton of depth.

So the Yankees improved their chances of winning this year, helped solidify the rotation for the next two years, still have a great shot at getting under the Luxury Tax threshold next season, and are left with a number of options to fill their roster from within for years to come.

Yes, losing any good prospect hurts, especially when it's three at once. I wasn't sold on Mateo continuing to dominate, but I liked the guy and thought he could be an option for the team in a few years. Even though he's constantly hurt, Kaprielian still has a high ceiling, so he could hurt us as early as next season. And then there's Fowler, who despite having suffered a serious knee injury leading to surgery, could be a solid piece for the Oakland A's next year and beyond. So I don't want you to think I'm disregarding those three... not at all.

But when you look at the whole of the deal, there's no doubt in my mind that the Yankees did the right thing here. So while you're entitled to your opinions...

Friday, January 6, 2017

This Day in New York Yankees History 1/6: The Greedy Pinstripes is Born


On this day in 2009 the Cleveland Indians signed oft-injured starting pitcher Carl Pavano, formerly of the New York Yankees. Pavano signed a one year deal worth $1.5 million for his age 32 season after only making 26 starts for the Yankees in four seasons and making $40 million.


Also on this day in 2006 the New York Yankees finished the year with a then record payroll of $207.2 million. That staggering number was $90 million more than the second highest spending Boston Red Sox. The World Series champion Chicago White Sox only spent $73.2 million while the Tampa Bay Devil Rays had the lowest payroll at $26.6 million.

Wednesday, December 28, 2016

Rise in Average MLB Salary Lowest Since 2004


Major League Baseball players have seen their average annual salaries go up every year basically since the 2004 season when the percent dropped 2.5 percent. Major League Baseball was in the midst of cleaning up the game then and the mega contracts were becoming scarcer but now injuries were almost to blame for another drop in salary. In 2016 the average MLB salary was $3,966,020 which was up just 0.35 percent from last season’s $3,952,252.

As a whole MLB said that salaries increased from $3.58 billion to $3.69 billion through August 31st of last season including those players who were on the disabled lists. That salary figure included 964 players on active rosters and disabled lists which was up from 933 players on the eve before September call ups in 2015.

In 2016 there were 561 different disabled list trips which led to more than 31,500 days spent on the disabled list. Both were MLB records. This led to more young players being called up at the league minimum of $507,500 which kept the overall growth down.

I find it hard to feel sorry for the players even getting paid $507,500 a year to play baseball let alone the ones getting paid multi-millions of dollars annually. I want to add that I am not one of these “they shouldn’t be getting paid millions to play a kids game” type of people or fans, I think that is obvious by my blog name and my work on the blog over the years, but at the same time…. I’d play MLB for $20 if they’d let me. You know? Sometimes your love for the game has to take over your wants, needs and greed for the green.



Wednesday, December 21, 2016

Yankees One of Six Teams to Pay Luxury Tax in 2016


The New York Yankees have been hit with the luxury tax threshold for the 14th straight season, and as an FYI the luxury tax penalties have been in existence for 14 straight years now, in 2016 along with five other teams. That’s a record for Major League Baseball.

The Los Angeles Dodgers paid $31. 8 million in luxury tax penalties while the New York Yankees paid the second highest at $27.4 million. The Boston Red Sox paid $4.5 million, the Detroit Tigers paid $4 million, the San Francisco Giants paid $3.4 million and the Chicago Cubs earned their first World Series since 1908 at the expense of $2.96 million.


The Yankees have paid a total of $325 million since the luxury tax began. 

This Day In New York Yankees History 12/21: Yankees Pay Their Taxes


On this day in 2009 the Yankees got hit with a luxury tax penalty bill of $25.69 million after winning the World Series just a month and a half ago. New York was the only team to go over the cap and get the penalty bill in the mail and has been the only team to be penalized in the seven years of the luxury tax's existence.

Also on this day in 1995 the Yankees resigned David Cone to a three year deal worth $18 million. Cone and the Toronto Blue Jays flirted around before George Steinbrenner got his man back in pinstripes.

Finally on this day in 1927 the New York Yankees and the Boston Red Sox made a trade that saw pitchers Ernie Shore and Dutch Leonard with outfielder Duffy Lewis go to the Yankees for "relatively unknown players" and $15,000 cash. The group of players included Frank Gilhooley, Slim Love, Ray Caldwell, and Roxy Walters.

Tuesday, September 27, 2016

Expect Another Quiet Offseason for New York


Last offseason the New York Yankees did the least New York Yankees thing they could have done, they signed the same amount of Major League free agents as I’ve gotten hits in Major League Baseball. Zero. The Yankees were quiet although they did make trades for Aroldis Chapman and Starlin Castro and you know what? We, as fans, could be in for an equally as long and quiet offseason this winter as well.

The New York Yankees have plans of getting under the luxury tax threshold, and FYI it is expected to go up around or above $200 million when the new collective bargaining agreement is all said and done this winter, either this season or next leaving the possibility of signing many free agents unlikely. This is especially true when you consider that Ivan Nova, yes that Ivan Nova, may be the best starting pitcher available and is already asking for $70 million across a five-year deal.

Remember the 2013 Yankees that let like 672 home runs, exaggeration but only a slight one, go in the offseason only to replace them with Chris Stewart and Kevin Youkilis? Well we may be heading towards that route again except this time the Yankees youth will take center stage. With Mark Teixeira, CC Sabathia and Alex Rodriguez finally coming off the books this may be the Yankees final chance to strike and get under the cap before super free agents like Manny Machado and Bryce Harper hit the open market, presumably.


As it stands right now the Yankees only have $95 million committed to players for the 2018 season and $57 million for the 2019 season not counting arbitration eligible players so this time around the possibility of getting under the cap is a real one. It’s only a real one though if the team stays off the free agent board, and I think that they will. Unfortunately. 

Friday, June 24, 2016

Do You Realize?

In my continuing attempt to forget about how bad the New York Yankees are doing this season, I took a look at the team's payroll for next season. And one interesting thing led to another. But let's start with a few facts...

  1. Between Mark Teixeira, Carlos Beltran, Aroldis Chapman, Ivan Nova, and the money the team was paying towards Martin Prado's contract, the Yankees will free up $56.55 million. 
  2. If you take the $150.5 million the team will pay towards player contracts next season (that number includes Sabathia's vesting option), and add around $35 million in arbitration and pre-arbitration salaries, the Yankees will have a payroll of around $185.5 million for 2017.
  3. The current MLB salary cap, or the amount a team can spend towards payroll before having to pay the luxury tax, is $189 million. Even if the luxury tax remains in the new Collective Bargaining Agreement, chances are that cap will rise, and I can easily see it reaching $200 million. That would mean the Yankees have about $14 million to spend next year, assuming they'll try to get under the tax threshold.

So where would that leave the Yankees for 2017?

"It doesn't look good down there."

With Teixeira out at first, the Yankees have a number of options... Greg Bird, Rob Refsnyder, Chris Parmelee, Austin Romine, and Brian McCann.

With Beltran out of right field, the Yankees have just as many options... Aaron Judge, Aaron Hicks, Rob Refsnyder, Jake Cave, and Ben Gamel.

Every other position on the diamond, including the starting rotation and bullpen, are filled. Yeah, it may not seem right, seeing as how the team is losing two of it's regular batters, but it's true. Take a look for yourself...

Catcher: Brian McCann
First Base: Greg Bird/Rob Refsnyder/Chris Parmelee/Austin Romine
Second Base: Starlin Castro
Shortstop: Didi Gregorius
Third Base: Chase Headley
Left Field: Brett Gardner
Center Field: Jacoby Ellsbury
Right Field: Aaron Judge/Aaron Hicks/Rob Refsnyder/Jack Cave/Ben Gamel
Designated Hitter: Alex Rodriguez

Starters: Masahiro Tanaka, Nathan Eovaldi, CC Sabathia, Michael Pineda, Luis Severino, Chad Green, James Kaprielian

Bullpen: Andrew Miller, Dellin Betances, Bryan Mitchell, etc. (they can easily fill the four other spots with players within the organization)

Some people may be concerned about that list of starting pitchers, but let's be honest...

Masahiro Tanaka is a strong starter at the top of the rotation, I still believe Eovaldi can be a solid middle of the rotation option, CC Sabathia has finally learned how to pitch without the velocity he had earlier in his career, Luis Severino is doing quite well in AAA, Chad Green has been killing it in Scranton, and despite his injury James Kaprielian could still be a nice contributor at the big league level next year.

Now for the even crazier part...

Okay, it's not "Gary Busey" crazy.

That all means the Yankees could actually re-sign Aroldis Chapman, keep the three-headed bullpen monster together for at least two more years, and still get under the luxury tax threshold. Assuming, of course, Chapman would sign for somewhere around his current salary of $11.325 million a year.

Or how about trading Andrew Miller, who would fetch quite a bit in a trade (either before the deadline or during the offseason) thanks to his below-market salary and being under contract for two more years? Then the Yankees could re-sign Chapman. That would leave three very capable bullpen arms in Chapman, Betances, and Mitchell. Not to mention the team would be under the cap by around $7 million going into the 2017 season.

If you want to see the finished product that I'm speaking of, here you go...

Catcher: Brian McCann
First Base: Greg Bird/Rob Refsnyder/Chris Parmelee/Austin Romine
Second Base: Starlin Castro
Shortstop: Didi Gregorius
Third Base: Chase Headley
Left Field: Brett Gardner
Center Field: Jacoby Ellsbury
Right Field: Aaron Judge/Aaron Hicks/Rob Refsnyder/Jack Cave/Ben Gamel

Starters: Masahiro Tanaka, Nathan Eovaldi, CC Sabathia, Michael Pineda, Luis Severino, Chad Green, James Kaprielian

Bullpen: Aroldis Chapman, Dellin Betances, Bryan Mitchell, etc. (they can easily fill the four other spots with players within the organization)

The best part... that does not include the player or players the team gets by dealing away Andrew Miller.

Thursday, June 9, 2016

Making the Case for and Against Trading Didi Gregorius/Starlin Castro


Here we are back at it again making the case for against trading some of the New York Yankees big names and bigger contracts before this season’s trading deadline. We’ve gone over some of the more obvious choices to be moved and some of the names that have expiring contracts or were mentioned in trade rumors this winter but today we are throwing you all a little bit of a curveball. With Jorge Mateo having an absolute monster of a season after an absolute monster of a season in 2015 the Yankees may find themselves with too many middle infielders and not enough positions to play them all. Would trading one of Didi Gregorius or Starlin Castro make sense to clear the spot for Mateo?


The case for trading Didi/Castro:

It clears the way for Jorge Mateo.

The free agent market next season is weak so the Yankees could get a haul for both players.

Yeah… not too many good things I see about trading them so let’s move on.


The case against trading Didi/Castro:
Both are young and under controllable team friendly contracts which help with the youth movement and help with getting under the luxury tax threshold.

Didi is a great defensive shortstop, although not without his flaws defensively mind you, and a young guy a rebuilding team generally rebuilds around.

The core nucleus and clubhouse presence of these two men are presumably underrated to most. You can tell they are both a huge part of the clubhouse family.

New York has proven that middle infielders don’t grow on trees, well not productive ones anyway, which may lead to more Stephen Drew like signings.

Jorge Mateo is still in A-Ball. Let him have a monster season in Double-A or Triple-A first.



I really can’t bring myself to justify trading one of these two right now. They are both young and under team friendly deals for a bit and both fit the mold of what the team is trying to do. They can handle their own with the bat, the defensive side of things has improved with both of them in the field, they are both young, versatile and flexible and they are both a huge part of the clubhouse atmosphere. When and if Mateo gets to the higher levels and starts banging on the door then we can revisit this option but right now both of these options have to be off the table for me. What say you? 

Thursday, March 31, 2016

Randy Levine Complains About the Luxury Tax Again


When Randy Levine talks I usually find the nearest mute button, pair of headphones or loud gun and/or explosion to go listen to instead. It’s nothing personal Randy I just don’t agree with a lot of the things you say and I don’t believe you speak for the Yankees fan. Maybe you speak for the suits that run things but suits don’t cheer and suits don’t pay the bills but anyway that’s another blog post for another day. Today’s blog post focuses on what Mr. Levine had to say regarding the New York Yankees, the New York Mets and the luxury tax that both teams have to pay.

In an interview with Fox Sports Levine said that it was “unfair” that the Yankees have to pay so much more in luxury tax than the Mets. Here’s the exact quote:

“What is very burdensome to us – and is unfair – is the amount of money we have to pay in revenue sharing compared, for example, to teams in our market that pay 10 times less than us,” Levine said. “Hopefully that is something that will get looked at in the next labor agreement.”

So let me get this straight. The league set a bar that currently sits at $186 million and said if you go over this total you’re hit with a tax. The league also mandated that the fine and penalty would worsen for consecutive seasons over the luxury tax threshold until or unless you get under the cap for a full season. Either the Yankees didn’t get a certified copy of the rules book or they knew what they were doing when they blew past the mark every year since its inception. Tell me again, please try anyway, how it’s “unfair” that the Mets don’t have to pay for blatantly disregarding the rules while the Yankees do. I’ll wait.


And I’m also wondering how Levine is confused by the whole revenue sharing thing as a whole. The Yankees are worth $3.4 billion, far and away the most in MLB, and the whole system was designed to steal from the rich and give to the poor. The Mets are poor, they are more in debt than the United States of America (almost anyway), and the Yankees are rich. But don’t worry Randy there is a silver lining in this all and how the team has been run recently. At the trend it’s going it won’t be the strongest, most desired or richest brand in all of North American sports anymore. That’s what losing and not reinvesting in your future will do to an organization. 

Friday, January 29, 2016

Hal Steinbrenner’s Comments & Why I’m Not Worried


Every season since Hal Steinbrenner has prominently owned the New York Yankees, and by the way where in the world is Hank Steinbrenner, he has made some speech around this time of the year about the upcoming season and the state of the organization and team. Every single season, to paraphrase a bit, he feels like the team is a “World Series caliber team” that can do well this season if they stay healthy and every single season he has something to say about the payroll. This year it was the fact that he was not “comfortable” with seeing the payroll rise much above where it is now, which FYI is the second highest in the league behind those pesky Los Angeles Dodgers, and the Yankees world and blogosphere went absolutely nuts.

Everyone has an opinion and I try to listen and understand each and every opinion I am presented with but that doesn’t mean I necessarily have to agree with it. Everything that I have read is negative about Hal not wanting to add even more payroll to the club and everyone acts as if the sky is falling. If that was the case the sky has been falling since George Steinbrenner gave control over to his two sons because this is the way it’s been for a while now. We all knew Hal was the fiscally responsible one and the better son to run the business side of the Yankees and that’s what Hal is doing. We all knew that he wanted to get under the luxury tax rather than piss away millions of dollars every single season to go home early in the postseason or not reach it at all and you know what, it’s the right path to take.

I know, one day I’m defending Brian Cashman and the next I’m defending Hal but hear me out. Throwing money at the problem does not work anymore as much as we the fans don’t want to admit it. The Dodgers don’t have a cap on their spending and they paid almost the same amount as the entire Tampa Bay Rays team to players that are no longer with the club and they still have as many World Series rings as the Yankees have. They have the best pitcher on the planet, they sign all the Cuban-born stars they want and they sign anyone and everyone they want on the free agent market. That and a buck can get them a Coke in the postseason, just like the Yankees.

Everyone is acting as if Hal is warning everyone that the payroll is going to go down to like $120 million or something. You can absolutely win a World Series with a payroll around $180 million (or higher as the luxury tax threshold is expected to go up with the next collective bargaining agreement) as long as you don’t have mega-contracts weighing the organization down. The biggest contract of them all being the contract that GEORGE gave Mr. Alex Rodriguez, not Cashman and not Hal. 

Sunday, January 24, 2016

Are the Small Market Teams Worried?


Major League Baseball has a big season and a big year ahead of them in 2016. Not only do they have the regular season, postseason and World Series but they also have a collective bargaining agreement that is set to expire after the season. MLB has enjoyed baseball every year without a work stoppage since the 1994 season that saw the World Series cancelled and teams like the New York Yankees and Montreal Expos wondering what could have been and the league intends to keep it that way if they can. You’re not going to get five people to agree on the same thing let alone 30 MLB team’s so finding a common ground is going to benefit some and take from others, that’s the business of things, but are the New York Yankees making the small market teams begin to worry yet?

In 2015 a record four teams paid into the luxury tax including about $70 million paid by the Los Angeles Dodgers and the New York Yankees. The other two teams, the San Francisco Giants and the Boston Red Sox, paid just $3.1 million combined last season. With the Yankees newfound plan to use their farm system, to acquire cheap and young controllable talent and their plan to get under the luxury tax threshold (for real this time) are teams like the Pittsburgh Pirates and the Tampa Bay Rays beginning to sweat a little?

The Yankees have paid the most in luxury tax since its inception and it’s not even close. The team has also paid in every single year since its inception adding a few dollars to teams like the Miami Marlins, Pittsburgh Pirates and others. How would these organizations look and run if that money were no longer there? I bring up the new collective bargaining agreement because things like the luxury tax and whether to raise it, stiffen the penalties or leave it alone will be discussed among other things. If the luxury tax is raised making it easier for teams like the Dodgers, Yankees, Red Sox and Giants to get under the cap what do the small market teams do?


Pittsburgh won’t be able to keep Andrew McCutchen unless they gut the team and/or he gives the organization a steep discount while the Rays, Indians and other teams will not be able to hold onto their young starting pitching. The pendulum will sway away from the smaller market teams once again and the larger market teams will once again have the financial power to do as they please and dictate the standings, the free agency market and other areas. The “Get Greedy” era will return and that in itself is a great thing for us Yankees fans. 

Wednesday, January 6, 2016

This Day in New York Yankees History 1/6: The Greedy Pinstripes is Born


On this day in 2009 the Cleveland Indians signed oft-injured starting pitcher Carl Pavano, formerly of the New York Yankees. Pavano signed a one year deal worth $1.5 million for his age 32 season after only making 26 starts for the Yankees in four seasons and making $40 million.


Also on this day in 2006 the New York Yankees finished the year with a then record payroll of $207.2 million. That staggering number was $90 million more than the second highest spending Boston Red Sox. The World Series champion Chicago White Sox only spent $73.2 million while the Tampa Bay Devil Rays had the lowest payroll at $26.6 million.

Monday, December 21, 2015

This Day In New York Yankees History 12/21: Yankees Pay Their Taxes


On this day in 2009 the Yankees got hit with a luxury tax penalty bill of $25.69 million after winning the World Series just a month and a half ago. New York was the only team to go over the cap and get the penalty bill in the mail and has been the only team to be penalized in the seven years of the luxury tax's existence.

Also on this day in 1995 the Yankees resigned David Cone to a three year deal worth $18 million. Cone and the Toronto Blue Jays flirted around before George Steinbrenner got his man back in pinstripes.

Finally on this day in 1927 the New York Yankees and the Boston Red Sox made a trade that saw pitchers Ernie Shore and Dutch Leonard with outfielder Duffy Lewis go to the Yankees for "relatively unknown players" and $15,000 cash. The group of players included Frank Gilhooley, Slim Love, Ray Caldwell, and Roxy Walters.

Friday, December 4, 2015

The Luxury Tax, the Yankees and Getting Greedy


We learned this week that the New York Yankees would have to pay another $26 million in luxury tax penalties for the 2015 season. The Yankees are once again preaching austerity, and why wouldn’t they after spending more money than I will ever see in my lifetime every single season in luxury tax for basically nothing. If the team was winning playoff series and World Series rings that would be one thing, but they aren’t lately. I can’t believe I’m saying this as the owner of a Yankees blog donned “The Greedy Pinstripes” but for once I agree with Hal Steinbrenner. Cut the payroll.

The two highest paid teams in Major League Baseball, the Yankees and the Los Angeles Dodgers, both made the postseason in 2015 and both were gone after one game. The Yankees lost the AL Wild Card Round to the Houston Astros while the Dodgers fell in the NLDS to the New York Mets. In fact, none of the top nine payrolls in all of Major League Baseball won a playoff series in 2015, the Chicago Cubs with the 10th highest payroll in baseball won a series in the National League as the second Wild Card winner. To take it one step further the Yankees have paid the tax in every season of its existence and haven’t won a World Series since the 2009 season. To take it even one more step forward the Yankees haven’t won a playoff game since Derek Jeter’s ankle snapped in Game One of the 2012 ALCS. That’s a lot of money for, if you believe in the World Series or bust mantra, a whole lot of nothing.

Imagine if the Yankees had $26 million to spend last winter, would Max Scherzer or Jon Lester be Yankees right about now? What if the Yankees had an extra $26 million to spend this season? Would we be seeing a Brett Gardner trade and a Jason Heyward or a Justin Upton? Maybe a David Price? Jordan Zimmermann is 29-years old and only got $22 million annually and he was considered to be one of the Top 3 best starting pitchers on all of the free agent market.


Every single season the Yankees take one of those big names and high-priced free agent acquisitions that we as fans demand and enjoy and flush it down the toilet labeled “Major League Baseball Luxury Tax.” Let that sink in for a minute. Getting under the cap for just one season allows the Yankees 100% resets on their taxes and allows them to not only Get Greedy but to own the free agency market once again if they see fit. I think I could handle one season with a payroll under $200 million, the rumored luxury tax threshold limit after the 2016 collective bargaining agreement expires this season, in order to once again wear the Greedy Pinstripes crown but maybe that’s just me. 

Tuesday, December 1, 2015

Yankees Pay $26 Million in Luxury Tax for 2015


It’s that time of the year folks, time to do your patriotic duties and pay your taxes. I never understood why companies want to wait until Christmas time to collect taxes, I mean my property taxes were due the day after Thanksgiving. How’s that for bringing in the Christmas spirit, but anyway I digress. I’m not the only one paying a significant tax bill right before Christmas, the New York Yankees and the rest of Major League Baseball is as well. The luxury tax and revenue sharing numbers are in and for four teams, they aren’t pretty.

The good news for the Yankees is they didn’t have to pay the highest luxury tax bill but the second highest. New York ended up paying $26 million in luxury tax penalties in 2015 while the Los Angeles Dodgers blew everyone out of the water with a $43.7 million luxury tax hit. Los Angeles did finish the season with a $298.3 million payroll so that had to be expected.


The other two teams in the league to pay luxury tax penalties were the Boston Red Sox (1.87 million) and the San Francisco Giants ($1.33 million). None of the four teams that paid in luxury tax dollars made it to the World Series or even won a playoff series while two of the teams didn’t even make the postseason, Boston finished in last place in the AL East. Simply outspending everyone isn’t working anymore ladies and gentleman, Bud Selig got his way.

Friday, November 27, 2015

Hal Steinbrenner Seemingly Has a Plan for the Yankees Offseason


If you’re a fan of the New York Yankees or have been for any length of time you have probably seen the same old song and dance for most of the winter’s and offseason’s you’ve experienced. The Yankees see a shiny new toy, the Yankees overpay for that shiny new toy despite their age, track record or injury history and the Yankees let that contract work for the now and worry about it later when it begins to burden them. Not anymore, at least that is my opinion based off what I have seen thus far this winter, as it looks like Hal Steinbrenner finally has a plan for the direction of the New York Yankees.

Now I know what you’re thinking, Hal is the Yankees owner and not the GM so who cares if he has a plan. That’s a valid and correct statement but at the end of the day Hal writes the checks and whether they admit it or not Hal has the final say in any and all deals and free agent signings. Most management driven deals are not initially reported as such but I’d say most of them, or more than we as a fan base should be comfortable with to be honest, come out eventually. See the Rafael Soriano signing or the Ichiro Suzuki trade and signing as examples of this.

In every interview you hear from Hal Steinbrenner it’s the same three or four lines that are likely on a tape recorder that he’s just playing back. The Yankees will look at everyone, it’s called due diligence, but the team is likely to stay out of the big free agent pool. That means no David Price, no Zack Greinke, no Jordan Zimmerman and no Ben Zobrist. Why? Because the team just doesn’t have the salary coming off the books before the 2016 season. Just $12.5 million is off the books from the 2015 season and all of that and then some will be eaten up by arbitration raises. In years past the team has taken that money and reinvested it, see the Brian McCann, Jacoby Ellsbury and Carlos Beltran signings along with the Masahiro Tanaka sweepstakes and the Brett Gardner extension.

Steinbrenner loves to name drop the names of the Yankees top prospects. James Kaprielian, Luis Severino, Greg Bird and Aaron Judge specifically. Steinbrenner believes building a farm system and building from within will not only allow the team to cut costs and get under the luxury tax threshold but will also make the team more “likeable” to fans. He’s got a point, whether anyone wants to admit it or not. Steinbrenner is going to spend, not spend wildly like his father mind you, and he’s also going to invest in the future, something his father rarely to never did. 


It sucks now to watch the team miss the postseason in two consecutive years and lose in the Wild Card Game in 2015 but if this means the team can get back to being a perennial powerhouse as soon as 2017 and beyond I think I’m okay with that. That’s the plan, at least that’s what I think the plan is, and if it’s allowed to achieve fruition I think a lot of Yankees fans will be “okay” with it too.