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  1. #1

    Hal's bad judgement thread

    Yankees appear to be scrapping plan of staying below $189M payroll
    11 hours ago

    The age of austerity doesn't look like it'll last long for the Yankees. (USA Today Sports)
    All along, the New York Yankees have stated the effort to cut their 2014 payroll to $189 million is merely a goal. More and more, it's one major league sources don't believe they'll reach.
    In recent months, the Yankees have become far less bullish on their publicly stated austerity plan, admitting to other executives and agents that staying beneath the $189 million threshold is unlikely and impractical.
    "They're going to be over 189," one source familiar with the Yankees' plans said. "They know it. Everyone knows it. You can't run a $3 billion team with the intentions of saving a few million dollars."
    The logic holds up well: The Yankees are arguably the greatest brand in American sports, and already with an injury-depleted roster this season, they could suffer a down year. To dilute the Yankee name for multiple years would necessitate a humongous monetary benefit – one sources say the Yankees no longer believe is coming to them, even if they were to dip beneath $189 million.
    Derek Jeter has a player option for $8 million next season with the Yankees. (AP)
    While the stash of money New York expected to reap was in the tens of millions, it's not nearly as large as the Yankees had hoped, a prognosis that is pushing the team to recalibrate its plans, sources said. The Yankees expected to receive money not just from a decreased luxury tax rate but a complicated clause in the collective-bargaining agreement called the market-disqualification rebate.
    MLB's revenue-sharing program works like this: The league taxes every team at 34 percent on its local revenue, pools the money and distributes it evenly. Beyond that, as a means to funnel more money to lower-revenue and smaller-market teams, it uses a variable tax rate that forces teams with big revenue streams in big markets to pay more on top of the 34 percent.
    The flaw in the system is that some teams in the top half of market size are not in the top half of revenue, meaning big-market teams are getting revenue-sharing dollars like small markets. In recent years, these teams have included Washington, Atlanta and Toronto. Starting this season, such teams were mandated to give a portion of that money back to the bigger-market teams – 25 percent in 2013, 50 percent in 2014, 75 percent in 2015 and 100 percent in 2016. The catch: Teams needed to be under the luxury tax threshold to qualify.
    [Related: Yankees far from top in MLB power rankings]
    Considering the money would be distributed proportionally to contributions, the Yankees expected their rebate to be significant – upward of $45 million between 2014-16 if they kept their payroll below $189 million for those seasons, according to two sources.
    One hitch: Washington's success has thrust it from so-called payee club to payor. And the Braves, despite a bad TV contract, and Blue Jays, with an old stadium, aren't far behind. The Miami Marlins, expected to be payors, have quickly reverted to payee status. Barring a change in the game's economics over the next few years, the big rebate money, sources said, simply won't exist, and the impetus for the Yankees won't be nearly as strong.
    "The assumptions on the market-disqualification rebate haven't held," one American League executive said. "The pool is going to be much less than everyone anticipated."


    Now that it's clear that the "strategy" was a loser from the git go, the Yanks are left with not a lot of good alternatives










    http://sports.yahoo.com/news/yankees...235433974.html
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  2. #2
    can't pump his fist Mark19's Avatar
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    Re: Hal's bad judgement thread

    If George were still around, he would not tolerate his son being so beholden to Randy Levine and his Goldman Sachs cronies.
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    "They should just practice during the regular season and show up for the playoffs -Ichiro on the Yankees

  3. #3

    Re: Hal's bad judgement thread

    as things stand now, it's not a bad overall guiding philosophy to seek payroll efficiency. so i'd be ok to have a rebuilding year if it means serious look at the amateur development system which has been very questionable. getting cheaper and 'sustainable' talent is very good. but, you have to do it with the context of what the market gives you.

    when the market gives you good opportunities, it doesn't matter what your self imposed spending limit is, it's still a good player to sign.

    there's a vast gulf between saving money on guys like chapman, darvish etc, and the likes of 37 year pujols
    always reasonable

  4. #4

    Re: Hal's bad judgement thread

    Quote Originally Posted by awy View Post
    as things stand now, it's not a bad overall guiding philosophy to seek payroll efficiency. so i'd be ok to have a rebuilding year if it means serious look at the amateur development system which has been very questionable. getting cheaper and 'sustainable' talent is very good. but, you have to do it with the context of what the market gives you.

    when the market gives you good opportunities, it doesn't matter what your self imposed spending limit is, it's still a good player to sign.
    I'm sure if Price had hit the market last year, he'd be a Yankee now.
    EvilEmpireDC: Fans bitch about anything lol

  5. #5

    Re: Hal's bad judgement thread

    go into your corner snapple. price is incredibly rare in today's fa environment while the IFA window was the biggest ................ing opportunity and the last one at that. it's a bad bad strategic oversight
    always reasonable

  6. #6
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    goin for 27's Avatar
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    Re: Hal's bad judgement thread

    This had to be the case all along....the Yanks CAN lower payroll, but the 2014 date was never a possibility.

    Too handcuffed by current contracts. No way to get to $189 AND sign Cano, for example.

    Yanks need to spend as wisely as possible over the next couple of seasons, and will be alleviated over time by expiration of ARod/Jeter/Tex contracts. THEN things can come more inline....
    Goin for 2<strike>7</strike>8!

  7. #7

    Re: Hal's bad judgement thread

    It was always a questionable idea considering we're paying a single player 30 million dollars a season in A-ROD, not to mention the monster money we are paying Sabathia and Teixeira, and the future money that we will give to Cano.

  8. #8

    Re: Hal's bad judgement thread

    Quote Originally Posted by awy View Post
    go into your corner snapple. price is incredibly rare in today's fa environment while the IFA window was the biggest ................ing opportunity and the last one at that. it's a bad bad strategic oversight
    No, I was agreeing with your last sentence. You break policy for a guy like Price/Verlander/Kershaw etc.
    EvilEmpireDC: Fans bitch about anything lol

  9. #9

    Re: Hal's bad judgement thread

    Quote Originally Posted by goin for 27 View Post
    This had to be the case all along....the Yanks CAN lower payroll, but the 2014 date was never a possibility.

    Too handcuffed by current contracts. No way to get to $189 AND sign Cano, for example.

    Yanks need to spend as wisely as possible over the next couple of seasons, and will be alleviated over time by expiration of ARod/Jeter/Tex contracts. THEN things can come more inline....
    The only real options to building a team are luck ( not a plan ) in the draft and/or Ibanez/Wells/Hafner type pickups or finally building a player procurement/development system that works.

    As stated above, players like Price are now the exception and are gonna be ridiculously expensive.
    MICRO PASSIVE/MICRO AGRESSIVE

  10. #10

    Re: Hal's bad judgement thread

    Next years team is a giant mystery. Amazing how many holes we have to fill.

  11. #11
    can't pump his fist Mark19's Avatar
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    Re: Hal's bad judgement thread

    We're looking at the following alignment for 2014:

    C: Cervelli
    C: Romine
    1B: Teixeira
    2B: Vacant
    3B: Rodriguez
    SS: Vacant (Jeter has a player option)
    LF: Wells
    CF: Gardner
    RF: Ichiro
    DH: Vacant
    UTIL: Nunez / Nix
    UTIL: Almonte / Mesa
    UTIL: Adams / Joseph
    SP: Sabathia
    SP: Nova
    SP: Phelps
    SP: Pineda
    SP: Vacant
    CL: Robertson
    RP: Kelley
    RP: Montgomery
    RP: Rapada
    RP: Warren / Nuno
    RP: Vacant
    RP: Vacant

    This roster is already going to cost us $115 million or so with arbitration estimates - you really think we can fill those holes on only $70 million?
    SI: Do you have a secret ambition?
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    "They should just practice during the regular season and show up for the playoffs -Ichiro on the Yankees

  12. #12

    Re: Hal's bad judgement thread

    25m for price and 25m for cano. who else is there
    always reasonable

  13. #13

    Re: Hal's bad judgement thread

    Quote Originally Posted by snapple View Post
    No, I was agreeing with your last sentence. You break policy for a guy like Price/Verlander/Kershaw etc.
    Much as they would have broken policy a few years ago for ARod/Teixeira?

  14. #14

    Re: Hal's bad judgement thread

    Quote Originally Posted by awy View Post
    25m for price and 25m for cano. who else is there
    25M for me. So now that's 75M for 3 players. How much more can we spend?

  15. #15

    Re: Hal's bad judgement thread

    Quote Originally Posted by Mark19 View Post
    This roster is already going to cost us $115 million or so with arbitration estimates - you really think we can fill those holes on only $70 million?
    We shouldbe able to. the Rays whole roster is $61.4.
    like delv, but better

  16. #16
    Bazinga Hitman23's Avatar
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    Re: Hal's bad judgement thread

    This is why I have not been stressing about the news. The Yankees are going to do what needs to be done because they can.
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  17. #17

    Re: Hal's bad judgement thread

    That's too bad. I was enjoying financial restraint but YankeeCorp just can't help themselves.

  18. #18
    Bazinga Hitman23's Avatar
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    Re: Hal's bad judgement thread

    Quote Originally Posted by Jax Teller View Post
    That's too bad. I was enjoying financial restraint but YankeeCorp just can't help themselves.
    Well, I don't think this means they are going to be dumb about it. I doubt there is a complete 180 coming. What I do think is that they will re-enter the market for impact players while not going nuts like in the past.
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  19. #19

    Re: Hal's bad judgement thread

    Quote Originally Posted by TrueYankee01 View Post
    25M for me. So now that's 75M for 3 players. How much more can we spend?
    are you bryce harper?
    always reasonable

  20. #20

    Re: Hal's bad judgement thread

    I don't care at all about the $189 threshold. Considering the comparably small amount of money that would be coming back to them, it's an arbitrary threshold (wouldn't have a huge impact on the team), and if they surpass it, so what. That said, I think the Yankees really NEED a few years of fiscal austerity here, and I hope they commit to it. I like this team and I'm proud of what it's accomplished, but it's old, overpaid, and held together with scotch tape. The Yankees need to swallow the bitter pills that are the next few years of the A-Rod/Teixeira/even CC contracts, and then once they're over commit to a full rebuild. I just really don't think that they're a few impact players away right now. Bringing in David Price won't bring them back on top. Waiting a few years, getting rid of the albatross contracts, and (with any luck) developing solid young players will. And I hope they have the patience to not sign any more albatross contracts while they right the ship.

  21. #21
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    Re: Hal's bad judgement thread

    I look at the 189 million dollar limit as just another number. Other than putting a few more dollars in Hal's pocket it really shouldn't effect this team too much. If the team finds that putting players together with a finite amount of money will lead to a more sound business plan fine. But it isn't going to make the team any younger or increase the quality of our prospects.
    The fans are going to have to come to the realization that this team is old and declining in efficiency. And until we have some luck in drafting (I say luck because the draft is at best a crap shoot) we aren't going to reach the World Series. I can probably list the entire list of better than average Yankee homegrown players on my fingers. Building a team takes a combination of lucky drafts, good trades and timely free agent signing.
    Trading for players like Ichiro and Wells are just band aids and there aren't enough free agents in the world to fill all the holes we will have as players like Jeter and Rivera retire.
    189 million or not.

  22. #22

    Re: Hal's bad judgement thread

    Quote Originally Posted by nyyfan61 View Post
    I don't care at all about the $189 threshold. Considering the comparably small amount of money that would be coming back to them, it's an arbitrary threshold (wouldn't have a huge impact on the team), and if they surpass it, so what. That said, I think the Yankees really NEED a few years of fiscal austerity here, and I hope they commit to it. I like this team and I'm proud of what it's accomplished, but it's old, overpaid, and held together with scotch tape. The Yankees need to swallow the bitter pills that are the next few years of the A-Rod/Teixeira/even CC contracts, and then once they're over commit to a full rebuild. I just really don't think that they're a few impact players away right now. Bringing in David Price won't bring them back on top. Waiting a few years, getting rid of the albatross contracts, and (with any luck) developing solid young players will. And I hope they have the patience to not sign any more albatross contracts while they right the ship.
    you don't watn david price? how do you go about developing a david price


    with his velo drop i'd be a bit cautious but it's still david price
    always reasonable

  23. #23
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    Re: Hal's bad judgement thread

    Why are people talking of David price as if he's gonna be a free agent this winter?

    He's arbitration eligible next year after earning $10mil as a super 2 this year... The earliest he can hit the open market is in 2016

    He will have been traded and extended far before then, and definitely not to the yankees
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  24. #24

    Re: Hal's bad judgement thread

    hmm, he'll be traded for sure. i don't know about extension though.

    there's a chance for the yankees to get him
    always reasonable

  25. #25
    Better than you teknetic's Avatar
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    Re: Hal's bad judgement thread

    Via Jeff Passan: The Yankees appear increasingly unlikely to follow through on their plan to get under the $189M luxury tax limit by 2014 and beyond. They’ve been telling other executives and agents the plan is “unlikely and impractical,” with one team official saying it “was a good idea to try, but deep down, we all pretty much knew it wasn’t going to happen.”

    First things first, Passan’s article appears to be speculation and he said, she said based more than anything. Wally Matthews had a similar report back in February, so this isn’t the first time we’ve heard the 2014 payroll plan may be going by the wayside. That said, where there’s smoke there’s fire. Passan explains the expected savings are not as great as anticipated and that’s as good a reason to scrap the plan as any. I want to see how the team approaches next offseason before I fully believe these reports, however.
    -RAB

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