• Yanks Are 98th Dumbest Spending Pro-Team (Out Of 122)

    Posted by on August 30th, 2012 · Comments (17)

    Via Wally Matthews -

    According to a story in the upcoming issue of Bloomberg Businessweek, the Tampa Bay Rays, with their $63 million payroll and, so far, 71 wins — good for third-place in the AL East — rank as the “smartest spenders” in pro sports based on a calculation of payroll data and regular and postseason wins over the past five seasons.

    The Yankees? How about #98 out of 122 franchises in MLB, the NFL, NBA and NHL.

    But if you think that’s bad, take a look at the Mets. They’re in 120th place overall and dead last among major league baseball teams. Hardly a surprise.

    The issue hits the newsstands tomorrow.

    Somehow, I suspect that this nugget of information will not be included on Brian Cashman’s bio page in the Yankees Media Guide.

    Comments on Yanks Are 98th Dumbest Spending Pro-Team (Out Of 122)

    1. LMJ229
      August 30th, 2012 | 11:00 pm

      I’m a numbers person so I find the finances of all pro sports to be very interesting. I’ve been reading alot lately on the MLB salary “cap” and I’ve come across alot of contradictions that I’m hoping someone here might be able to clarify.

      My understanding is that the Yankees are currently paying a 40% luxury tax and have been for several years now. In 2013 the percentage is raised to 50% assuming they exceed the “cap” of $178M, which I believe they will. However, if they can get their payroll below the “cap” of $198M for 2014 they obviously would not have to pay any luxury tax. Then, in 2015, if they once again exceed the “cap” of $198M their luxury tax will only be 17.5% because they did not exceed the “cap” in the previous year. So the Yankees stand to save a ton of money if they can get their payroll below the $198M cap in 2014. As we all know, that is Hal Steinbrenner’s directive.

      But the real catch here is the salaries that make up the cap. Some articles I’ve read say it is based on actual salaries. Others say its based on the average value of the contract. In some cases, that could be a significant difference. Also, in the case of A-Rod he has $30M in HR bonuses built into his contract that I believe would count against the cap. He gets a $6M bonus for tying Willie Mays at 660. He is only 16 HRs away so he should reach that next year. The next $6M bonus is for tying Babe Ruth at 714. Right now he is 70 away from that number so if he hits 35 next year and 35 the year after, he will earn that $6M bonus. And that will be in 2014 – the year the Yankees are determined to get under the cap.

      Finally, my last concern is the question of benefits. The existing luxury tax is based on the average value of contracts for players on the 40-man roster plus earned bonuses plus a predetermined benefits figure. I believe the benefits figure is $9M.

      So, if I understand this correctly, in 2014 we are already committed to:
      $27.5M for A-Rod’s avg. annual salary
      $23.25M for Sabathia’s avg. annual salary
      $22.5M for Texiera’s avg. annual salary
      $9M for benefits
      $6M for A-Rod’s 714 HR bonus (potentially)
      That’s $88.25M for only three players.
      Or, to put it another way, that leaves us $100M for 37 players.
      Expect to see alot of young, inexpensive players on our roster in 2014. Our farm system will finally be put to the ultimate test. I, for one, welcome it.

    2. Raf
      August 31st, 2012 | 12:14 am

      Meanwhile, Derek Jeter has more playoff appearances than the Tampa Bay franchise has existed…

      I’ll take dumb spending and perpetual playoff appearances, thankyouverymuch 8)

    3. KPOcala
      August 31st, 2012 | 12:37 am

      @ Raf:Raf, couldn’t agree more. I spend time wanting to watch a good/great team mesh. Not worrying about what tax shelters the Owners have to use to shelter their winnings. Not a valid “smart”/”dumb” comparison IMHO….

    4. KPOcala
      August 31st, 2012 | 12:38 am

      Steve, did Cashman give that extra contract to A-Rod. Seems like that was someone else’s doing….

    5. rankdog
      August 31st, 2012 | 4:14 am

      Not a surprise. A team like the Rays who have been in the upper tier of the draft for several years and have several players under team control or the first big league contract are winning with in their talent window. Where the Yankees haven’t drafted in the top tier of the draft since almost 20 years and are primarily working with players in the 2nd or 3rd big league contract. In baseball young talent doesn’t often hit the open market and when it does a premium is paid. We have danced to this song before with the Oakland A’s and Minnesota Twins. They also had very good runs on small budgets. Eventually they had to pay for that talent or lose it.

    6. #15
      August 31st, 2012 | 8:22 am

      @ Raf:
      He shoots! He scores!!!!

      Exactly. I did give a damn if the Stienbrenners run a 7% margin shop or a 40% margin shop, as long as they keep putting a highly competitive team on the field and maintain long tern finiancial viability. After that… Rings, baby. Just gimme rings.

    7. August 31st, 2012 | 9:12 am

      KPOcala wrote:

      Steve, did Cashman give that extra contract to A-Rod. Seems like that was someone else’s doing….

      The new A-Rod deal was all Hank. Keeping him after that is all Cashman. See how the Red Sox used A-Gon to unload the contracts of Crawford AND Beckett. Anyone can be moved, if the GM is creative enough to get the job done. But, as long as Cashman is the Yankees GM, you’re going to be stuck with A-Rod (unless he asks out).

    8. August 31st, 2012 | 9:18 am

      @ LMJ229:
      I agree that the Yankees are going to have to have to get creative for those remaining 22 roster spots. But, knowing Cashman, I suspect that he will shop the bargain bin looking for $1 million deal with has-beens rather than go all with kids.

      There will be some kids in the mix – but, not a ton. They Yankees just don’t have a lot of near major league ready prospects to tap into now. Maybe in another 2 or 3 years? But, that’s all on Cashman and Damon O.

      In a way, it almost makes more sense to get a savy GM in place now, have him try and deal CC, Tex and A-Rod and get all prospects in return and really flood the team with good young players – and take the money saved on those traded and spend it on good, but less expensive, free agents.

      But, that will never happen.

    9. KPOcala
      August 31st, 2012 | 11:54 am

      @ Steve L.:Steve, let’s not forget that A-Rod has 10/5 rights. And God knows that he’ll want ‘something’ to ok a trade. Another thing to consider, third base has always been a hard spot to fill. And it’s not as though the farm system has anyone breaking the door down to get to the Majors. Which, I know, goes back to Cashman. I’ll give you this about Cashman: he had damn well get creative in this off-season because falling off the cliff isn’t out of the question. If I’m Cash I’m reading Walt Weiss and Branch Rickey in my spare time….

    10. August 31st, 2012 | 4:13 pm

      Off topic-

      Wow. Where is everyone today?
      Cat got the Yankees fan tongue?

    11. Raf
      August 31st, 2012 | 5:31 pm

      Steve L. wrote:

      Anyone can be moved, if the GM is creative enough to get the job done.

      I’ve been saying that for years. And we saw it last offseason, with Burnett.

    12. Raf
      August 31st, 2012 | 5:32 pm

      Steve L. wrote:

      But, that will never happen.

      Because it’s a lousy idea.

    13. Raf
      August 31st, 2012 | 5:33 pm

      Steve L. wrote:

      Off topic-
      Wow. Where is everyone today?
      Cat got the Yankees fan tongue?

      Holiday weekend :)

    14. August 31st, 2012 | 5:52 pm

      Raf wrote:

      Because it’s a lousy idea.

      Branch Rickey 101: “Trade a player a year too early rather than a year too late.”

    15. KPOcala
      August 31st, 2012 | 9:53 pm

      @ Steve L.:
      That really does sum up a GM’s talent in roster planning…

    16. Raf
      September 1st, 2012 | 9:46 pm

      Steve L. wrote:

      Raf wrote:
      Because it’s a lousy idea.
      Branch Rickey 101: “Trade a player a year too early rather than a year too late.”

      You’re missing one major element; the Red Sox not making the playoffs since 2009, whereas the Yanks have. While the Yanks were posting the best record in the AL in 2011, and running up (and losing) a 10 game lead in 2012, the Red Sox were languishing in 4th place.

      Breaking up the Yankees, a team that is currently 2nd best in the AL (behind the Rangers) at this time is a poor idea.

    17. rankdog
      September 2nd, 2012 | 4:45 am

      Steve L. wrote:

      KPOcala wrote:
      Steve, did Cashman give that extra contract to A-Rod. Seems like that was someone else’s doing….

      The new A-Rod deal was all Hank. Keeping him after that is all Cashman. See how the Red Sox used A-Gon to unload the contracts of Crawford AND Beckett. Anyone can be moved, if the GM is creative enough to get the job done. But, as long as Cashman is the Yankees GM, you’re going to be stuck with A-Rod (unless he asks out).

      A few points here:

      1) We can all agree ARod is overpaid. However, is it really wise to dump him when they are still getting above average production from him? Sure his days of 50hrs and .300 average are probably behind him. It seems unlikely he will play 150 games. I can honestly say I look forward to having in the line up come playoff team than counting on Chavez ect to man the hot corner.

      2) You point to the Red Sox just finished a historic trade as a failure on Cashman’s part. I am not sure if you are just trying to fan the flames of discussion or if you honestly believe that’s realistic. Following the Red Sox model you are likely to have to trade CC, ARod and Tex to get that deal done. Is that a deal you want to make? Do you think ownership would sign off on that deal? If you answered a delusional yes to both those questions, where does that leave this team? Right now you have a fairly solid shot at the post season. If we can get CC and Pettitte going, keep Hughes and Kuroda going, add ARod/Tex back to line up who knows how much noise we can make. Every contender has their flaws.

      But we both know the Yankee brass is not going to approve of that scenario. They aren’t going to gut a first place team for a chance to be efficiently competitive 3 years down the road. As much cash as they save on those 3 contracts they are going lose this years playoff run, advertising money both to the team and YES, eyeballs/ratings on YES, and gate profits.

      Our rival RS had a losing team that the fans weren’t fond of, an owner losing his taste for blowing money on entitled under-performing team. You had a 185million team that was on track to miss the playoffs for a 3 consecutive year. All 3 players were under performing their contract with Crawford being an abomination of a contract. A change was needed. Kudos for suckering a desperate ownership in LA into erasing all your mistakes. I don’t see the Yankees in that dire of a situation. Essentially you want to give up 2 years of possible playoff runs to gain flexibility 3-4 years down the road. I will pass, thank you very much.

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