However, the Yankees have already paid luxury tax on three of those five years - are we going to get a refund from the Commissioner's office for the fact that the AAV has now changed for those three years as well?
Interestingly - and I realize it is not necessarily an official source of data - Cot's has already moved AJ's contract to the Pirates and shows that the Yankee's $20M contribution is split $11.5M in 2012 ($4M savings) and $8.5M in 2013 ($8M savings).
One way of looking at it that can be considered here is that the Yankees would have paid $13.2M in luxury tax on Burnett's contract over the next two seasons. They will now only be responsible for $20M, which becomes $8M in luxury tax, which is a savings of $5.2M.
Another possibility is that the Yankees will save $2M in 2012 (they pay $11.5M of the $16.5M contract, a decrease of $5M) and save $3.2M in 2013 (they save $8M).
Since I think for luxury tax purposes, the AAV actually shifts to the acquiring team and only the funding obligation remains on the old team's luxury tax payroll, I would have to think the latter is what is really going to happen.
From an ESPN article on luxury tax
To compute the payroll, Major League Baseball uses the average annual values of contracts for players on 40-man rosters and adds benefits.
AJ passed Pirates' physical and MLB has approved the trade per Heyman. Clock is now ticking on getting the lefty DH...
“@JonHeymanCBS: Burnett passed the physical and mlb approved the trade. Done deal.”
Now sign Ibanez and Chavez and the team in complete and ready to battle for #28
Pass on Chavez
So who backs up 3B?
Nunez? HA...Rather root for Hall to make the team.
you want your back up infielders to be able to field the ball... thats the very least you expect from them..
Hall doesn't fit the bill... Bring back Chavy.
An assignor Club that pays cash consideration to defray all or part of the salary obligation of the assignee Club for an assigned Player shall include such cash consideration in its Actual Club Payroll in the Contract Year in which the cash consideration is paid
farewell sweet prince... we'll see lots of you in spring training, seeing as how the pirates complex is right next door