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Thread: 189M in 2014??

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    189M in 2014??

    Will the payroll be under 189M or will the Yankees continue working over the luxury tax?

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    Slow in, Fast out ThePinStripes's Avatar
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    Re: 189M in 2014??

    They'll be under it. No way they're going to pay 50% luxury tax.

    With Burnett's contributions off the books, Jeter and Mo cleared and Arod's salary dropping, they'll make it if it's a conscious goal.
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    Re: 189M in 2014??

    Quote Originally Posted by ThePinStripes View Post
    They'll be under it. No way they're going to pay 50% luxury tax.

    With Burnett's contributions off the books, Jeter and Mo cleared and Arod's salary dropping, they'll make it if it's a conscious goal.
    Burnett, Mo, and ARod's dropping salary have no effect on 2014. also, Jeter has a player option for 2014, so hes probably on the books. arent the Yankees already under a 40% luxury tax bracket as it is?

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    Re: 189M in 2014??

    https://spreadsheets.google.com/pub?...LQ&output=html

    Fair amount of work to do. But with only 4 players that aren't cost controlled on the books for 2014, should do it if they want to do it. Even after giving Cano and potentially Granderson big money.

  5. #5

    Re: 189M in 2014??

    Quote Originally Posted by jenks View Post
    https://spreadsheets.google.com/pub?...LQ&output=html

    Fair amount of work to do. But with only 4 players that aren't cost controlled on the books for 2014, should do it if they want to do it. Even after giving Cano and potentially Granderson big money.
    that spreadsheet isnt going by AAV. ARod's number is about $30 mil, and Jeter gets about $10 more. Gardner, Robertson, Nova and Pineda will be getting significant raises, Hughes would have to walk, etc etc. i have yet to see a realistic $189 mil scenario while being as competitive

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    Re: 189M in 2014??

    I don't get what the big fuss is for the upcoming 50% over $189M. Isn't it pretty much just as bad now for the Steins @ 40% over $178M ?

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    Re: 189M in 2014??

    Quote Originally Posted by GordonGecko View Post
    I don't get what the big fuss is for the upcoming 50% over $189M. Isn't it pretty much just as bad now for the Steins @ 40% over $178M ?
    Well, its really not that straight forward.

    I believe the Yankees have paid around $20M-$25M on average since the 2005 40% tax hike. However, the incentives that come from being under the cap with this new CBA are amazing.

    If they are at $189M or less for 2014-2016, they not only avoid paying any luxury tax (which will be 50 percent because they are repeat offenders). They will get roughly $40 million in savings from the "market disqualification revenue sharing program".

    Any team under the luxury tax point of $189M will be reimbursed in said program. They are doing that to make sure teams like the NATS don't recieve revenue dollars.

    If the Yanks go under $189M million for even 2014 alone and then back over in 2015, they would get about $10 million in the revenue sharing disqualification program and would back to a tax of 17.5% instead of the 50 percent that begins in 2014 for them if they never go below $189M.
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    Re: 189M in 2014??

    Quote Originally Posted by nnysiny View Post
    that spreadsheet isnt going by AAV. ARod's number is about $30 mil, and Jeter gets about $10 more. Gardner, Robertson, Nova and Pineda will be getting significant raises, Hughes would have to walk, etc etc. i have yet to see a realistic $189 mil scenario while being as competitive
    Jeter will be $8 million if he plays, $3 million if he doesn't. Pineda and Nova will only be first year arb eligible, so their numbers should be pretty reasonable still -- especially if Banuelos or Betances is another one of the starters. They'll be cheaper at closer, and I wouldn't assume that all the others you mention come back.
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    Re: 189M in 2014??

    The new luxury tax rules are a de facto salary cap.
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    Re: 189M in 2014??

    As long as Yankees continue to make it into post-season, Hal will have little incentive of increasing the payroll.

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    Re: 189M in 2014??

    Quote Originally Posted by jenks View Post
    https://spreadsheets.google.com/pub?...LQ&output=html

    Fair amount of work to do. But with only 4 players that aren't cost controlled on the books for 2014, should do it if they want to do it. Even after giving Cano and potentially Granderson big money.
    I don't know. They have $72.125 tied up in three players (Sabathia, Teixeira, and A-Rod). That leaves $116.875 for the other 22 roster positions--or an average of $5,312,500 per player. And at that point, 38-year-old A-Rod might be a $22 million non-factor.

    As you mentioned, Granderson and especially Cano are going to take a large chunk of that. They're already making $24 million combined ($14 million for Cano and $10 million for Granderson) this season. Both have an option for next season, and if they're exercised, that figure will go up to $28 million ($15 million for Cano and $13 million for Granderson).

    Even if you figure that they'll make the same salary in 2014 that they do in their 2013 option years, that would bring the payroll to $96.125 million on five players. That leaves $92.875 million to spend on the other 20 roster spots--or and average of $4,643,750 per player.

    Add in that Gardner and Robertson will be in their final arbitration years, and Nova, Nunez, Pineda, and Cervelli will also be up for arbitration.

    It really depends on the young players, especially the pitchers. If Banuelos and Betances come up to be productive league-minimum starting pitchers, it will make the Yanks' job a whole lot easier. But if they have to pay for starting pitchers--even back-end starters--it's going to be a lot more difficult. If they can fill out the rotation with cheap, young arms, that would allow the Yanks to try to use some of those second-tier prospects to build a bullpen.

    If the youngsters don't step up, however, and the Yankees have to be active in the free agent market--or even overpay to keep guys like Martin and Hughes--it's going to be extremely difficult to field a team under the salary cap.

    And all of this assumes that the Yankees will not jump in on Matt Cain or Cole Hamels or any other significant free agents in the near future.
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    Re: 189M in 2014??

    Maybe the ticket prices will be lower.
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    Brien "The Incident" just-blaze's Avatar
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    Re: 189M in 2014??

    Quote Originally Posted by nnysiny View Post
    that spreadsheet isnt going by AAV. ARod's number is about $30 mil, and Jeter gets about $10 more.Gardner, Robertson, Nova and Pineda will be getting significant raises, Hughes would have to walk, etc etc. i have yet to see a realistic $189 mil scenario while being as competitive
    I think the raises will be covered by Rivera's eventual retirementand Soriano leaving.
    Pineda probably won't be getting a "significant" raise.

    I think one of Hughes or Nova will be traded.

    Eh.....seems like something that is a bit premature to worry about, IMO.
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  14. #14
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    Re: 189M in 2014??

    Quote Originally Posted by Yanknut023 View Post
    Maybe the ticket prices will be lower.
    Ticket prices aren't directly related to payroll at all. Ticket prices might go down if lowering payroll makes the team less competitive and attendance plummets. Otherwise, lower payroll will mean more profits for the Steinbrenners, but not lower prices for the fans.
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    Re: 189M in 2014??

    Quote Originally Posted by JL25and3 View Post
    Ticket prices aren't directly related to payroll at all. Ticket prices might go down if lowering payroll makes the team less competitive and attendance plummets. Otherwise, lower payroll will mean more profits for the Steinbrenners, but not lower prices for the fans.
    I wouldn't say that. Teams who want to make a push will sign expensive free agents knowing that they will be able to pay for them with higher prices and to justify those prices. But to your point, I can't possible see a scenario where any team would cut payroll in order to cut ticket prices. They would sooner just pocket the savings

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    Re: 189M in 2014??

    Quote Originally Posted by yanksfan7788 View Post
    Will the payroll be under 189M or will the Yankees continue working over the luxury tax?

    Under $189 Mil

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    Re: 189M in 2014??

    The intention is clear. Make it under $189M in 2014 then blow out the system in 2015 again.

  18. #18
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    Re: 189M in 2014??

    Quote Originally Posted by nnysiny View Post
    that spreadsheet isnt going by AAV. ARod's number is about $30 mil, and Jeter gets about $10 more. Gardner, Robertson, Nova and Pineda will be getting significant raises, Hughes would have to walk, etc etc. i have yet to see a realistic $189 mil scenario while being as competitive

    I totally disagree with you. Arod's number goes down from $29 in 2012 to $25 in 2014. Rivera will be retired and his $15 million is gone.

    Jeter either gets $8 million or he gets resigned at a lower salary with possibly deferred payments. Don't bet against the Yankees and ARod agreeing to restructure his contract with lower deferred payments. Soriano and his $14 Million will be gone. If Swisher stays it will be at a salary lower than his current $( million. Kuroda at $10 million will be here for only one or two years and be gone by 2014. Feliciano at $8 million and Martin at $7.5 million will be gone by 2014.

    With all our pitching talent in the minors, only CC will have a big salary. The rest of the starters and relievers will be relatively inexpensive. Romaine will be at minimum or just above.

    $189 Mil isn't as difficult, with George gone, as many might think.

    Andy
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    Re: 189M in 2014??

    Well I guess this officially kills off any chance Hamels or Cain is a Yankee next year. We better hope Pineda becomes an ace, and the B's become front end rotation starters.

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    Re: 189M in 2014??

    Quote Originally Posted by Nome View Post
    I totally disagree with you. Arod's number goes down from $29 in 2012 to $25 in 2014. Rivera will be retired and his $15 million is gone.

    Jeter either gets $8 million or he gets resigned at a lower salary with possibly deferred payments. Don't bet against the Yankees and ARod agreeing to restructure his contract with lower deferred payments. Soriano and his $14 Million will be gone. If Swisher stays it will be at a salary lower than his current $( million. Kuroda at $10 million will be here for only one or two years and be gone by 2014. Feliciano at $8 million and Martin at $7.5 million will be gone by 2014.

    With all our pitching talent in the minors, only CC will have a big salary. The rest of the starters and relievers will be relatively inexpensive. Romaine will be at minimum or just above.

    $189 Mil isn't as difficult, with George gone, as many might think.

    Andy
    I believe you are missing the point. For luxury tax purposes, the player salary for a season is the average annual value (AAV) for the life of the contract. This means that A-Rod will get paid 25 million (if you are correct) but count $27.5 million (I believe 10/275 contract right?) against the luxury tax. This makes it more difficult to skirt around the system and overpay everyone in 2013 what they should get paid in 2014 to get under the cap. (ie pay A-Rod 50 million in 2013, but 2 million in 2014 to get under the cap in 2014)
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  21. #21

    Re: 189M in 2014??

    Quote Originally Posted by dabomb2045 View Post
    Well I guess this officially kills off any chance Hamels or Cain is a Yankee next year. We better hope Pineda becomes an ace, and the B's become front end rotation starters.
    Why you think that trade was made?

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    Re: 189M in 2014??

    Quote Originally Posted by Yankees1962 View Post
    Why you think that trade was made?
    Yeah I get that....I'm just saying there is no margin for error now. If Pineda doesnt become an ace, if the B's dont pan out...then the ability to fill a slot via FA isnt a possibility.

  23. #23

    Re: 189M in 2014??

    Quote Originally Posted by dabomb2045 View Post
    Yeah I get that....I'm just saying there is no margin for error now. If Pineda doesnt become an ace, if the B's dont pan out...then the ability to fill a slot via FA isnt a possibility.
    They do have a margin of error by increasing the inventory of arms and allowing the B's to have a full year of development in AAA. Furthermore, it's still two years away and that's a lifetime in baseball so who knows what else might happen in that time.

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    Re: 189M in 2014??

    http://yankees.lhblogs.com/2012/03/0...verybody-else/

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  25. #25

    Re: 189M in 2014??

    If A-Rod gets of those milestone bonuses in '14, it also counts towards the luxury tax.
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