The Yankees plan is to get under the $189 million luxury tax threshold by 2014. That won't be easy. Currently, the Yankees have a ton of money invested in Alex Rodriguez, Mark Teixeira, and C.C. Sabathia. That's about $85 million when you factor in pensions and other benefits and the like. Three players, essentially $85 million gone. Rodriguez also gets a $6 million bonus for hitting home run #714 so if he does that, an unlikely scenario but a scenario nonetheless, add on another $6 million. That puts it at $91 million for the 2014 payroll and the Yankees haven't paid Robinson Cano yet. That could cost as much as $22 million or more. Now, the Yankees need to field a catcher, a center fielder, a left fielder, a right fielder, and a DH. Curtis Granderson should be a Yankee for a while but he could be very expensive in the future, at least $15 million. Derek Jeter also has an $8 million player option for 2014. This money is going bye-bye faster than a Kim Kardashian marriage.
I know what you are thinking, fellow Yankee fans. How do the Yankees actually get UNDER $189 million? Sure, the Yankees could try to trade away a contract or two. But, realistically, who will take on Rodriguez's contract or even Mark Teixeira's? A trade won't happen unless the Yankees eat most of the contract, kind of like what is happening with A.J. Burnett right now. By the way, Burnett will be off the books by 2014 in case you were wondering.
You know why the Yankees aren't giving up on their prospects? They are the replacements for the aging, high-priced veterans the Yankees have clogged their roster with. Figure if Jeter does come back in 2014 he will be in his twilight, most likely his last season or two. Also, who knows how long Rodriguez is physically capable of playing third base. His hips aren't getting any better and age will not help any. So, they could be in the market for a third baseman. Could Brandon Laird be that guy? Doubtful but possible.
Don't expect the Yankees to go crazy signing anyone in the next few years. Instead, start to get to know Manny Banuelos, Dellin Betances, Jesus Montero, Mason Williams, Gary Sanchez, Austin Romine, J.R. Murphy, Zoilo Almonte, Dante Bichette, Jr. and a host of other prospects in the Yankees system. They will be replacing the older veterans. There is no way the Yankees can re-sign Nick Swisher after his contract is up. There is no way they sign Cole Hamels next year. There is no way they can afford to bring in any big-name free agent. Instead they will be relying on the young kids to take their place.
This is a complete philosophical change from Yankee teams in the past. George Steinbrenner's Yankees are gone. These are Hal's Yankees now. Fiscally responsible. In a lot of ways this will work out in the Yankees favor. They have an excellent scouting department and have uncovered a lot of talent in recent years. It also means no more A.J. Burnett contracts. That's a good thing. It also means no more Pedro Feliciano contracts. No more giving $4 million per year to a lefty veteran who blows out his arm without throwing a big league pitch in Pinstripes. Did you see what the Yankees did with the bullpen this past season? Did you see Luis Ayala put up a decent season? How about Cory Wade? The Yankees bullpen was one of the best in the game and it featured guys taken off the scrap heap or developed in their own system. Rafael Soriano was the exception. Expect David Robertson, Joba Chamberlain, or some other prospect the Yankees bring up to get first crack at replacing Mariano Rivera. Don't expect the Yankees to go out and sign away some other closer from elsewhere. It ain't gonna happen. It can't happen if the Yankees are serious about this luxury tax threshold.
Free agents are not going to be raking in the kind of money they are now. No team wants to put themselves in a position to pay half of their payroll in luxury tax for being a repeat offender. On a $190 million payroll that would be $95 million in taxes. That is crazy. Think of it like a salary cap of sorts. Free agents will have to take less because teams won't offer as much. It's the way of the future in baseball. If the Yankees went into 2014 without changing the way they operate they would pay $105 million in taxes on a $210 million payroll. That's $315 million for player salaries alone. That is unsustainable. The Yankees need to change. They need to adapt. It starts now. This is why there was no Yu Darvish under the Christmas tree for Yankee fans and there will be no Yoenis Cespedes to ring in the new year. There will be no Prince Fielder at DH. No Cole Hamels to keep Yankees fans warm next winter. The times are changing.
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