What happens with Burnett?

[MassNYYfan]

I'm not sure if I'm the first to post this, but I really wanted to see A.J. Burnett give Derek Jeter a creampie. I'm upset this is never going to happen.

[Mr.Muhozi]

I'm not sure if I'm the first to post this, but I really wanted to see A.J. Burnett give Derek Jeter a creampie. I'm upset this is never going to happen.

Sweeeeaaaarrdown.

[HelloNewman]

I'm not sure if I'm the first to post this, but I really wanted to see A.J. Burnett give Derek Jeter a creampie.

You're probably not the first to have that fantasy but I'm pretty confident you're the first to announce it publicly.

[kan_t]

We have 7.5M off our payroll this year, thus we are 7.5M less over the threshold and 40% of that is 2.6M
Likewise, we have 7.5M off our payroll next year and 40% of that is 2.6M

Total = 5.2M

What am I missing here?

To my understanding, luxury tax counts player's average salary for his whole contract, not his salary for particular year. Therefore, the Yankees paid luxuey tax 40% of AJ's $16.5M which is $6.6M a year. Now they paid $5.56M for the luxury tax a year - (82.5-13)/5*40%=5.56.

[aeromac76]

To my understanding, luxury tax counts player's average salary for his whole contract, not his salary for particular year. Therefore, the Yankees paid luxuey tax 40% of AJ's $16.5M which is $6.6M a year. Now they paid $5.56M for the luxury tax a year - (82.5-13)/5*40%=5.56.

You are correct, the AAV (average annual value) is what is the tax hit..

[longtimeyankeefan]

To my understanding, luxury tax counts player's average salary for his whole contract, not his salary for particular year. Therefore, the Yankees paid luxuey tax 40% of AJ's $16.5M which is $6.6M a year. Now they paid $5.56M for the luxury tax a year - (82.5-13)/5*40%=5.56.

Well, I will admit to not being in the Commissioner's office calculating luxury tax, but I believe you are correct with respect to the AAV point.

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.

[longtimeyankeefan]

You are correct, the AAV (average annual value) is what is the tax hit..

Yes, but the AAV of Burnett's contract is no longer in the Yankees' payroll for luxury tax purposes - only their obligation.

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.

[CalYankeeFan]

I'm not sure if I'm the first to post this, but I really wanted to see A.J. Burnett give Derek Jeter a creampie. I'm upset this is never going to happen.

[dabomb2045]

I'm not sure if I'm the first to post this, but I really wanted to see A.J. Burnett give Derek Jeter a creampie. I'm upset this is never going to happen.

Post of the Year

[Yankees13]

I'm not sure if I'm the first to post this, but I really wanted to see A.J. Burnett give Derek Jeter a creampie. I'm upset this is never going to happen.

Excuse me while I go throw acid in my eyes to try to erase this mental image.

[StingrayJG]

I'm not sure if I'm the first to post this, but I really wanted to see A.J. Burnett give Derek Jeter a creampie. I'm upset this is never going to happen.

Sometimes a quick visit to Urban Dictionary can do wonders towards avoiding these moments...

[Mr Coffee]

Rule 34.

[ThePinStripes]

To my understanding, luxury tax counts player's average salary for his whole contract, not his salary for particular year. Therefore, the Yankees paid luxuey tax 40% of AJ's $16.5M which is $6.6M a year. Now they paid $5.56M for the luxury tax a year - (82.5-13)/5*40%=5.56.

Interesting way to calculate it. I'm not sure how they do it, but I'll take your word for it.

If you ask me, we should be off the hook for all 16.5M/year's tax implications since he's not on our 40 man roster

[VirginiaYank]

AJ passed Pirates' physical and MLB has approved the trade per Heyman. Clock is now ticking on getting the lefty DH...

[foreveryankees]

“@JonHeymanCBS: Burnett passed the physical and mlb approved the trade. Done deal.”

[yank4life2005]

Good news.

Now sign Ibanez and Chavez and the team in complete and ready to battle for #28

[philleotardo]

Pass on Chavez

[yank4life2005]

So who backs up 3B?

Nunez? HA...Rather root for Hall to make the team.

[yanksfan7788]

done deal

http://espn.go.com/new-york/mlb/stor...al-sources-say

[foreveryankees]

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.

[kan_t]

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.

You need your back up infielder to be able to stay on the field. Chavez doesn't fit the bill.

[Yankee Fan in Boston]

To my understanding, luxury tax counts player's average salary for his whole contract, not his salary for particular year. Therefore, the Yankees paid luxuey tax 40% of AJ's $16.5M which is $6.6M a year. Now they paid $5.56M for the luxury tax a year - (82.5-13)/5*40%=5.56.

I kind of doubt it would work that way... then they'd be owed money back for the part of the $13 million that they already paid in earlier years. There are adjustments for things like bonuses achieved, so I imagine there are for situations like this as well.

[JL25and3]

Yes, but the AAV of Burnett's contract is no longer in the Yankees' payroll for luxury tax purposes - only their obligation.

From an ESPN article on luxury tax

According to the old CBA:

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

[flymick24]

farewell sweet prince... we'll see lots of you in spring training, seeing as how the pirates complex is right next door

[-tz]

First Images of A.J. Burnett in New Uniform Released