2014 Yankees - Fiscally Responsible

[k-factory]

Well looks like Tanaka will be posted
 
I would venture to say its to the Yankees detriment that this happen this year as opposed to next with the LT reset. Much like the Cano conundrum this puts management at a crossroads again as to what their philosophy is.
 
If you're in their shoes though, seems like a no-brainer. You have to go all-in, LT and rebates be damned. Leverage your brand and your cash to lure the likely best pitcher on the market to bolster the rotation for the next 5-7 years and increase the chance of filling those luxury boxes in the post-season. The competition will doubtless be stiff though. 

 

[jon abbey]

That would all make sense if their main goal was to contend. But it isn't. 

 

[jon abbey]

Also, Tanaka being posted does not look close to definite yet:
 
Dylan Hernandez ‏@dylanohernandez7m
Tanaka met with Rakuten president. Tanaka said he wants to pitch in majors, Rakuten asked him to stay, according to reports. No resolution.

 

[Greg29fan]

Ken Rosenthal ‏@Ken_Rosenthal1m
Sources: #Yankees likely to sign free-agent 2B Brian Roberts.

 

[Sampo Gida]

Does anyone really still believe NY's main goal is to contend this year?
 
Yanks could go from Robinson Cano to Dean Anna at second base

 
LOL. 
 
I finally figured it out, Goldman Sach and the Yankees have set up a hedge fund that's betting the price of Yankees stadium bond PILOTs will crash, as they surely will when  the bond ratings goes to junk after revenues fall off a cliff. 

 

[jon abbey]

 
Ken Rosenthal ‏@Ken_Rosenthal1m
Sources: #Yankees likely to sign free-agent 2B Brian Roberts.
 

 
LOOK OUT AL EAST

 

[SemperFidelisSox]

Brian Roberts is only 36, which makes you prepubescent in the Yankees clubhouse.

 

[jon abbey]

809 PAs combined for Roberts in the last 4 seasons, and a .669 OPS over that time. THE GLORY DAYS ARE TRULY BACK. 

 

[MakMan44]

After all the money the Yankees have dropped this season (and still probably have a lot more to do) a Brian Roberts signing is what makes JA snap. Interesting.

 

[Doctor G]

They should have made that right field porch a little tougher to reach. It is having the same effect on decision making that the Green Monster had on the Red Sox in the fifties.
Roberts should be good for at least 7 HRs if he can stay off the DL.

 

[Lowrielicious]

809 PAs combined for Roberts in the last 4 seasons, and a .669 OPS over that time. THE GLORY DAYS ARE TRULY BACK. 

So, 3 years 30 million then?

 

[Murderer's Crow]

So, he won't have 7 homeruns. 2b is shaping up to be a mess. Roberts is fine as a no risk signing but if this is Cashman waving the white flag, color me unimpressed. I'd rather them go with the the best defensive 2b they can find who can stay healthy than mess around with 2b platoons who can't stay healthy. 

 

[Kid T]

If I tried my absolute hardest to come up with reasoning for what they've done this offseason, all I can muster is that if they get Tanaka, they can trick people into thinking it's a brand new team.

 
I think it's all about this article from the WSJ.  They have declining ratings, declining attendance, and missing the playoffs resulted in a drop of $50+ million in revenues.  They aren't trying to build a better team per se, they are trying to create marketing opportunities by signing "name" players in an attempt to draw fans.  Their half-hearted efforts to re-sign Cano was the result of realizing that he wasn't a draw (as evidenced by the declining gate last year).  Fans want to see them pick up a recognizable name.

 

[jon abbey]

Heh, I haven't snapped, but keep in mind I am also a Knicks and Jets fan and it's hard to imagine a NBA team botching the final 48 seconds of a tie game as badly as NY did tonight. Venting is pretty much all I do these days as a sports fan, it's kind of fun actually. 
 

 
They aren't trying to build a better team per se, they are trying to create marketing opportunities by signing "name" players in an attempt to draw fans.  

 
Yep, this is exactly what I've been saying for a while, signing Ichiro to a two year deal last season was the most obvious sign. Can you link that WSJ article correctly (the link above doesn't seem to work)? I'm curious to read it, thanks. 

 

[jon abbey]

 I'd rather them go with the the best defensive 2b they can find who can stay healthy than mess around with 2b platoons who can't stay healthy. 

 
I'm sure Brendan Ryan will get some starts there also, maybe quite a few if Roberts goes down as expected. 

 

[The Mort Report]

So the McCann/Beltran/Roberts signings would be fantastic.... in 2008.  Their combined WAR(per FG) 5 years ago was 17.2, last year 5.6. And its not like any of them, well maybe McCann, but he'll lose value in an eventual position switch, will improve their values.  

 

[Sampo Gida]

 
I think it's all about this article from the WSJ.  They have declining ratings, declining attendance, and missing the playoffs resulted in a drop of $50+ million in revenues.  They aren't trying to build a better team per se, they are trying to create marketing opportunities by signing "name" players in an attempt to draw fans.  Their half-hearted efforts to re-sign Cano was the result of realizing that he wasn't a draw (as evidenced by the declining gate last year).  Fans want to see them pick up a recognizable name.

 
Despite the revenue drop due to declining attendance and missing the playoffs,  revenues are still robust due to the new stadium which has 30% higher average ticket prices than the old stadium,  The ratings drop probably does not affect revenues much since only 20% of YES revenue comes from advertisements, the rest from cable viewers who pay as part of their basic cable fee.  The post season revenue can be recovered by putting a competitive team on the field. Spend the extra 30 million for the additional 6 wins and they are back in the post season and earning an additional 50-75 million in revenue. 
 
As for Cano not being a draw because attendance dropped last year, that's too much.  They have been losing attendance since 2009, and last year the team was pretty bad.  Winning brings the fans in.   Attendance is a bit of a lagging indicator, so next years attendance drop could be a doozy unless fans fall for the marketing gimmick.  The Red Sox had a great year in 2013 but attendance dropped as a result of 2012.
 
 
 
edit -link for wsj article  http://online.wsj.com/news/articles/SB10001424052702303997604579238550215265832
 

After all the money the Yankees have dropped this season (and still probably have a lot more to do) a Brian Roberts signing is what makes JA snap. Interesting.

 
Despite all the money they have dropped they are still in line to have the lowest payroll since 2002 (adjusted for player salary inflation).

 

[jon abbey]

My guess is that NY management is under the impression they won't do permanent harm to ticket sales if they field another mediocre team this year because they are planning to break the bank next offseason. This is a very dubious plan for numerous reasons that we all know, but I believe it's their current mindset. 

 

[glennhoffmania]

 
I think it's all about this article from the WSJ.  They have declining ratings, declining attendance, and missing the playoffs resulted in a drop of $50+ million in revenues.  They aren't trying to build a better team per se, they are trying to create marketing opportunities by signing "name" players in an attempt to draw fans.  Their half-hearted efforts to re-sign Cano was the result of realizing that he wasn't a draw (as evidenced by the declining gate last year).  Fans want to see them pick up a recognizable name.

But isn't the whole point of that article that when the Yankees don't win they make a lot less money?  If that's the case I don't know why their goal wouldn't be to build a better team, not a more marketable team.

 

[Murderer's Crow]

Because I'm never going to buy a ticket unless we have at least 4 all-stars in the lineup and 2 name brand pitchers. Now don't get me wrong. They don't all have to be current nominees. They could have been on the team 10 years ago. I just want their name to be familiar.

 

[Minneapolis Millers]

So, Crow, I take it that you're not pining for Tanaka.  You want Johan Santana...

 

[Murderer's Crow]

Santana and Miguel Tejada.

 

[Ed Hillel]

 
LOOK OUT AL EAST

 
It gets better:
 

Left-handed reliever Matt Thornton agreed Tuesday to a two-year, $7 million contract with the New York Yankees, according to Thornton's agent, Adam Hubble.

 
http://espn.go.com/boston/mlb/story/_/id/10152877/rp-matt-thornton-new-york-yankees-agree-two-year-deal
 
Enjoy!

 

[glennhoffmania]

He's just as good as Logan, but for a fraction of the price!!!  What a steal!!!.

 

[Gash Prex]

Thorton was such hot garbage...you knew the sox were throwing the white flag when they brought him in to the game.  

 

[bankshot1]

Yankees 2013 luxury tax bill 
 
http://espn.go.com/boston/story/_/id/10154043/new-york-yankees-hit-28m-luxury-tax
 

 
 

 
 
NEW YORK -- The New York Yankees were hit with a $28 million luxury tax bill, pushing their total past the $250 million mark since the penalty began in 2003.
According to Major League Baseball calculations sent to teams Tuesday, the Los Angeles Dodgersare the only other team that exceeded the tax threshold this year and must pay $11.4 million. Boston finished just under the tax threshold for the second straight year, coming in $225,666 shy of the $178 million mark.
 
Figures include average annual values of contracts for players on 40-man rosters, earned bonuses and escalators, adjustments for cash in trades and $10.8 million per team in benefits.
 
 
 

 

[SemperFidelisSox]

@BizballMaury: Yankees hit with the 50% Luxury Tax rate. Will pay $28,113,945, this year alone.

 

[Kid T]

But isn't the whole point of that article that when the Yankees don't win they make a lot less money?  If that's the case I don't know why their goal wouldn't be to build a better team, not a more marketable team.

 
One of my takeaways from that article is that they had to keep revenues up to maintain the asset value of the franchise - which is why they took some risks with marketable veterans who might be past their prime. 

 

[Mugsy's Jock]

Roberts should be good for at least 7 HRs if he can stay off the DL.

"HOME RUN ROBERTS....AIN'T THAT A BRIAN SHAME?" -- John Sterling home run calll

 

[Murderer's Crow]

As per MLBtr - 
 

The Yankees plan to spend $12MM-$15MM on the 2014-15 international amateur free agent market, incurring $10MM-$12MM in penalties, Kiley McDaniel of Scout.com reports. That $12MM-$15MM figure would not include potential spending for Masahiro Tanaka, who is not subject to international bonus pools that govern spending for most Latin American amateurs.

 
I think this touches on the argument going on the $189m thread. The Yankees are clearly trying to restock the farm here by devouring the intl market. I think it's a great idea.

 

[jon abbey]

I think this touches on the argument going on the $189m thread. The Yankees are clearly trying to restock the farm here by devouring the intl market. I think it's a great idea.

 
It would have been a much much much better idea a few years ago. Now once you go 15 percent over the limit, you're not allowed to spend more than $250K per FA next season. So this would be at the cost of adding much international talent next off season, if the rumor is actually true.

Basically NY is desperate, and the new CBA has closed pretty much every loophole for them to throw around money, so they're trying to figure out which they can still abuse to punish them the least.

 

[Murderer's Crow]

 
It would have been a much much much better idea a few years ago. Now once you go 15 percent over the limit, you're not allowed to spend more than $250K per FA next season. So this would be at the cost of adding much international talent next off season, if the rumor is actually true.

Basically NY is desperate, and the new CBA has closed pretty much every loophole for them to throw around money, so they're trying to figure out which they can still abuse to punish them the least.


I don't have a problem with it if they do really well while overspending. I'm not sure how the CBA works for year 3 but if they employed this tactic every other year, you would think they'd have much better results over a 3-5 year period than if they didn't.

 

[LondonSox]

 
LOL. 
 
I finally figured it out, Goldman Sach and the Yankees have set up a hedge fund that's betting the price of Yankees stadium bond PILOTs will crash, as they surely will when  the bond ratings goes to junk after revenues fall off a cliff. 

This Goldman sachs point you keep trying to make is what exactly? That's several times you brought it up.

 

[Meff Nelton]

Goldman financed the launch of the YES Network, and were alleged to have played a big role in the '07 A-Rod negotiations. Funny thing is if you look at the effect that A-Rod had on ratings and attendance last season upon his return, despite his (relative to contract) lack of production on the field, their advice to the Yankee organization might not have been wrong.

 

[Toe Nash]

 
It would have been a much much much better idea a few years ago. Now once you go 15 percent over the limit, you're not allowed to spend more than $250K per FA next season. So this would be at the cost of adding much international talent next off season, if the rumor is actually true.

Basically NY is desperate, and the new CBA has closed pretty much every loophole for them to throw around money, so they're trying to figure out which they can still abuse to punish them the least.

I hear if you finish with a really bad record you get a high pick in the draft and more money to spend on your draft signings...

 

[Sampo Gida]

This Goldman sachs point you keep trying to make is what exactly? That's several times you brought it up.

 
I guess my point is there may be more to the 189 goal than we are led to believe.  Not wanting to go into it all again but it makes no sense to me to risk revenue by fielding a less competitive team for 1 year of tax savings/revenue sharing rebates when the team has paid over 20 million a year in tax for over a decade and has more revenues due to a new stadium, the Newscorp deal and national TV money.  I pick on Goldman because their similarities with the Yankees are so obvious and they are partners, so perhaps their advice is influencing the Yankees.   Maybe they want the Yankees to clean up their future payroll obligations in a run up to future sale thinking that will help their market value despite the revenue drop.   Perhaps it has nothing to do with that and MLB is simply putting a strong arm to the Yankees somehow to adhere to 189 or face a higher revenue sharing burden.  There are some who believe that a much greater portion of YES revenues besides that which is paid to the Yankees should be shared.  There is also the deal where the Yankees 51 million in debt service on the new stadium is subtracted from revenue sharing revenues and perhaps MLB used the threat of pulling that from the latest CBA in return for their adherence to the 189 threshold to reign in salaries, or maybe they dangled the carrot of more revenue sharing relief.
.
Granted, this is all speculation on my part, but the accepted premise behind their desire to be under 189 makes little sense to me.

 

[TomTerrific]

189 or no 189, this should help the bottom line.

 

[terrynever]

189 or no 189, this should help the bottom line.

Always good to do business with a shiek. This sounds like a subplot of American Hustle.

 

[terrisus]

As mentioned in passing in the article, Sheikh Mansour also owns Manchester City F.C. of the English Premier League.
 
Also, reading through the article:
 

But under the bailout plan approved Dec. 18 by Bronx Parking’s board of directors and the holders of its debt, the reorganized company would pay no rent until 2056 for more than 20 acres of city-owned land where its other stadium garages are located.

That’s right, no rent for the next 42 years!

The company was supposed to pay $3.2 million annually in rent for the land, plus pay real estate taxes, under its 2007 agreement for the $237 million in tax-exempt bonds it received to build the garages.

The garages, however, were a financial disaster from day one, as Yankee fans shunned their sky-high rates of $35 on game days.

The result was that Bronx Parking failed to pay any money to the city for the past six years. The company now owes more than $50 million in rent, taxes and penalties. But its debt to the city is last in line to the $237 million it owes its bondholders.

So as part of the agreement with the bondholders to reissue new bonds, whatever money the Yankees and their soccer partner, the Manchester City club owned by Sheik Mansour Bin Zayed Al Nahyan, pay for the 153rd St. garage will all go to the bondholders.

None of that money will go to pay down the city debt.

 
What a disaster that has been.

 

[Sampo Gida]

So the Yankees and the sheik are getting a sweetheart deal for the land at city taxpayers expense which will be rent free and will build a 350 million dollar soccer stadium.  Hmm.  Maybe that's one reason for being under 189,  to free up some cash, however, it seems the stadium will be financed with more PILOTES, so maybe not. 

 

[jon abbey]

OK, so let's update this:
 

Ellsbury
Jeter
McCann
Teixeira
Soriano
Beltran
Roberts
Johnson/Nunez?
Gardner
 
Cervelli
Nunez/Johnson?
Ichiro
Ryan
 
 
Sabathia
Kuroda
Tanaka
Nova
Pineda/Phelps
 
Robertson
Kelley
Betances
Claiborne
???
???
???

 

[jon abbey]

We haven't heard much about their plans for the bullpen, whether they think they have a couple of internal solutions or plan to add more FAs. 

 

[terrisus]

Well, so much for that.
Is anyone actually surprised?

 

[SemperFidelisSox]

The luxury tax is calculated by a teams payroll at the end of the season, not what it is in January. If the team is 10 games out of the wild card by July with little chance of turning it around, Cashman can start dumping salaries to get back under $189.

 

[terrisus]

The luxury tax is calculated by a teams payroll at the end of the season, not what it is in January. If the team is 10 games out of the wild card by July with little chance of turning it around, Cashman can start dumping salaries to get back under $189.


Although with pro-rated amounts for their time played with the team this year, yes?

 

[jon abbey]

The luxury tax is calculated by a teams payroll at the end of the season, not what it is in January. If the team is 10 games out of the wild card by July with little chance of turning it around, Cashman can start dumping salaries to get back under $189.

 
You can only dump salaries if other teams will take them, there are very few movable deals on this roster. 

 

[TomRicardo]

The luxury tax is calculated by a teams payroll at the end of the season, not what it is in January. If the team is 10 games out of the wild card by July with little chance of turning it around, Cashman can start dumping salaries to get back under $189.

 
What would anyone want?
 
Also the Yankees never ever give up or face reality.

 

[terrisus]

Well, I didn't realize this until this article pointed it out:
 

 
It was the most expensive free-agent spending spree in baseball history when the Yankees committed a combined $438 million for 22 years of contracts to Masahiro Tanaka, Jacoby Ellsbury, Brian McCann and Carlos Beltran.

 
Fiscally responsible!
 
 
 
Of course, the article was by Jim Bowden, and in it he gave Brian Cashman his "award" for best big-market GM this offseason...
So, you know... There's that...

 

[Sampo Gida]

Well, I didn't realize this until this article pointed it out:
 
 
Fiscally responsible!
 
 
 
Of course, the article was by Jim Bowden, and in it he gave Brian Cashman his "award" for best big-market GM this offseason...
So, you know... There's that...

 
Yet they have managed to cut their payroll for 2014 by 50 million (salary + tax).  A 20% cut. Imagine.

 

[StuckOnYouk]

 
Yet they have managed to cut their payroll for 2014 by 50 million (salary + tax).  A 20% cut. Imagine.

 
You can't give them credit for A-Rod's 25. I assume you're including that right? That's just incredible sh*t luck.