New York Yankees Payroll In 2013 And Contracts Going Fwd Updated Mar.4/2013

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Monday, March.04/2013

You are looking at the #1 and #2 Hits Leaders of ALL-Time for Active Professional Hitters in the World. Having them hit 1-2 in the lineup only makes sense. You might as well have them both retire at the same timeJeter is signed for one more year at 17 Million Dollars plus a player option ($8 MIL) for 2014. The Yankees signed Ichiro to a 2 year deal worth $13 MIL this past winter.

Chuck Booth (Lead Baseball Analyst/Website Owner):

I am not like a lot of people thinking that there should be a full-scale blow-up of the Yankees current roster this year (past that I am acknowledging this will happen.)  They are old and 2013 will not make them younger.  However, there are some small tweaks that the team could do in order to make the payroll make sense.  1st priority was to sign Ichiro Suzuki.

The Japanese Superstar was not  and Yankees obliged to let him play RF in New York.  Adios to outgoing Nick Swisher.  He was much too pricey and Yankee fans have to be sick at his lack of production in his playoff career.  Swisher commanded a nice 4 or 5 year deal in the 56 – 70 Million Dollar Range from the Indians –  and was not a fit into the Yankees current payroll structure.

The Yankees were initially looking to spend just a little over 178  Million Dollars in 2013, but that didn’t happen.  At a 40% penalty (for every dollar spent over the 178 Million Mark)  for abusing the Luxury Tax Threshold, the team will need to have made financial considerations in moving forward each time they sign another new player.  Curtis Granderson and Robinson Cano are on the last year of their contracts.  Mark Teixeira, CC Sabathia and A-Rod still have multiple years left in their contracts. 

I would immediately move Alex Rodriguez to a permanent DH (when he returns to the lineup) –  and play Kevin Youkilis at 3B for all of 2013.

To the Readers on our Payroll Breakdowns:   Keep in mind these are all just estimates as we are all not forensic payroll accountants.  For a better look at how Payrolls work in the MLB please check out this article here.

Derek Jeter Highlights:

As a fan favorite in New York, the club could not justify spending the same salary that Cleveland gave him.  He has a brutal Post Season average of .169 for his Career - including 2-36 (053) with RISP .

As a fan favorite in New York, the club could not justify spending the same salary that Cleveland gave him. He has a brutal Post Season average of .169 for his Career – including 2-36 (053) with RISP .

Yankees Outfield will look significantly better with Brett Gardner in CF and by moving Curtis Granderson to Left (once he returns from his injury.  I would also hit Gardner out of the 9 slot and still have Jeter and Ichiro hitting 1 and 2.  Robinson Cano should slide into the 3 spot – and I would have Mark Teixeira hit 4th and then would rotate Youkilis with Granderson in the 5th slot depending on a Left-Handed or Right Handed Pitcher,  while having the other guy hit 6th.  The DH or Catcher can fill out the 7th and 8th slots with Gardner hitting in the 9th hole.

Alex Rodriguez will be sidelined until at least the All-Star Game with a Hip Injury. He has a full no-trade clause in his contract and is still owed 114 Million Dollars over the next 5 years –Photo courtesy of nytimes.com

For the bullpen,they still have Dave Robertson, Joba Chamberlain, Boone Logan, Clay Rapada and Cody Eppley under team control.  Under the radar was the signing of David Aardsma last year – while he was recovering from Tommy John Surgery.  He is signed to just above the Major League Minimum in 2013 and could be the ‘WILDCARD’ pitcher out of the pen.  He had 69 Saves for the years of 2009 and 2010 combined. The starting pitchers are looking decent for next season. 

CC Sabathia comes back as the club’s ace for the 5th straight year and has won 74 games in his 1st 4 years as a Yankee.  Following him will be: Andy Pettitte, Hiroki Kuroda, Phil Hughes  and Ivan Nova that have contracts for next year.  At some point, Michael Pineda will make a return to the club. You also have David Phelps and possibly Dellin Betances challenging for spots on the pitching staff.

Hiroki Kuroda went 16-11 – with a 3.32 ERA for the Yankees in 2012. The Yankees are already old, so having re-signed him for a 1 YR/15 Million Dollar Deal was perfect.

They will not be able to fight off ‘FATHER TIME’ forever.  The key will be to organize the contracts in order to blow up the whole team in a massive re-construction once their legends retire soon.  They also need payroll flexibility as Robinson Cano will likely receive one of the biggest contracts in MLB history heading into 2014.  After this year, they could let Curtis Granderson walk – and look for a replacement OF heading into next year’s Free Agency.

New York Yankees Payroll 2013 in Millions Signed Players (Contract):

Alex Rodriguez DH:  28.0 (signed thru 2017.)  In 2014, A-Rod makes $28 MIL in 2013, then the next four years go like this:  25,21, 20 and 20.  He will also make $30 MIL left in marketing bonuses should he hit escalating marketing bonuses from HRs 661 through 763.  At this rate, maybe he will never collect on all of those.  The base is ridiculous enough at $114 MIL over the next 5 years.  The insurance paid on his ailing hip injury will not make a huge enough dent for Yankees Fans.  He is the ALL-Time Active Leader for HRs (647), RBI (1950) and XBH (1189).  At best he may turn back to a .270/.340/740 with around 70 RBI a year.  Hardly worthy of a $22.8 MIL average salary from 2013 – 2017.

Mark Teixeira 1B :  22.5 (Signed thru 2016).  ‘Tex makes $22.5 MIL for every year for 2013 – 2016.  If he can just hit 30 HRs, drive in 100 RBI (despite BA) the Yankees will take it for the money given out.  The Switch Hitter still took home a Gold Glove for the franchise in 2012.  His 24 HRs and 84 RBI were also accomplished in 122 Games.  This guy may be overpaid, but is certainly not a flop and an above average First Baseman.

Sabathia is 85-31 (.762) since a 2008 trade from Cleveland to Milwaukee.  He earns every penny.

Sabathia is 85-31 (.762) since a 2008 trade from Cleveland to Milwaukee. He earns every penny.

CC Sabathia SP:   23.0 (Signed thru 2017).  He makes $23 Mil also in 2014 and 2015, before he makes $25 MIL for 2016.  There is a 2017 Vesting Option for $25 MIL.  Salary guaranteed if he does not end 2016 on the Disabled List with a left shoulder injury, or he does not spend more than 45 days on the DL.in 2017.

Derek Jeter SS:  17.0  (Has a player Option of 8.0 Million for 2014 (Buyout is $3 MIL.) 2014 option may increase to $17M based on points earned for Gold Glove, Silver Slugger, LCS MVP, WS MVP or top 6 in AL MVP.

Cano is good for a 300+ Average, 30 HRs and 100+ RBI.  He hits the FA Market at the worst time for NYY to resign him.  Might the LA Dodgers come calling?

Cano is good for a 300+ Average, 30 HRs and 100+ RBI. He hits the FA Market at the worst time for NYY to resign him. Might the LA Dodgers come calling?

Robinson Cano 2B:  15.0 (Signed thru 2013 and is an Unrestricted Free Agent in 2014).

Hiroki Kuroda SP: 15.0 (Signed thru 2013 and is an Unrestricted Free Agent in 2014.)  This was a no – brainer for one more year.  The club was able offer more on one year deal than other clubs.  Kuroda will either come back to NYY in 2014 – or head back to Japan.

Curtis Granderson OF:  13.0 (Signed thru 2013 and is an Unrestricted Free Agent in 2014.)  Granderson will be able to seek a big 3 – 4 Year Deal worth $14-$17 MIL per year based on what guys with similar numbers were signing for this past winter. (He is better than Swisher – who raked in $14 MIL a year, plus B.J. Upton – who inked a deal worth $16 MIL per season.  Granderson is north of 30, however the Yankees are trying to save $ for next year.  If this was the George Steinbrenner Yankees, Grandy would have better odds to remain.

Youkilis was well short of his .388 Career OBP with the White Sox in 2012 (.346), however the guy is still better than over half of the 3B in the MLB.  With the Sox, his OPS was .772

Youkilis was well short of his .388 Career OBP with the White Sox in 2012 (.346), however the guy is still better than over half of the 3B in the MLB. With the Sox, his OPS was .772.

Kevin Youkilis 3B/1B/DH: 12.0 (Signed thru 2013 and is an Unrestricted Free Agent in 2014.)  “Youk” was a stop – gap measure for A – Rod.  This helped leverage him for a few more $ when he took a shorter term.  He is a Boston Red Sox lifer and I can’t see him coming back to New York for a second campaign.

Andy Pettitte SP:  12.0  (Signed thru 2013 and is an Unrestricted Free Agent in 2014). Pettitte will break down more as each year passes.  He knows the organization has a chance to compete this year.  I think he will retire once again after the year.

Mariano Rivera 

Mariano Rivera has led the league in saves 3 different times, has finished 5 times in the top five for the AL CY Young.  He is the ALL-Time Saves Leader, the ALL-Time Games Finished Leader, Has and 0.70 ERA in postseason to go along with another 42 Saves.  Rivera is also the active Leader in WHIP (.998), ERA (2.21) and is a 12 time ALL-Star.   At 43, might he have one more stellar season in him?

Mariano Rivera signed a 1 YR/10 Million Dollar Deal in  order to come back on his own terms.  He is the ALL – Time Saves Leader (601), Active ERA Leader (2.21) and Active WHIP Leader (0.998).

Mariano Rivera deserved his one year deal.  He keeps himself in great physical condition and has never really struggled in his MLB Career.  The Yankees also missed his Career Post Season ERA of 0.70 in last years playoff run.

Ichiro Suzuki OF:  6.5 (Signed for an additional year of 2014 at 6.5 –  and will be a Free Agent in 2015.)  Again, I would tie the years commitment with Jeter and him together.  It may happen again in 2014 (with Suzuki being signed and Jeter having a Player Option), past this – everyone would really be stretching their luck.

Brett Gardner  CF/LF:  2.9 (Is Arbitration Eligible in 2014 and a Free Agent in 2015.)  Speed guys don’t generate huge raises in Arbitration.  The management has to be hoping that Gardner can put his injuries behind him and be a productive Outfielder for the next few years.  If Jeter retires, he most certainly could head up to the top of the lineup with a decent OBP.

Travis Hafner DH/1B:  2.0 (signed thru 2013 and is an Unrestricted Free Agent in 2014.)  Hafner is the kind of player the Yankees might just take a look at again next year.  Andruw Jones put together 2 decent seasons as a platoon DH as a comparison. 

David Aardsma RP:  500K  (Is signed thru 2013 and is a Free Agent in 2014.)  Aardsma could also earn himself another contract for the Yankees in 2014.  The expectations are low – and he could end up being a real bargain.

Total Payroll for these 13 players is 179. 6 MIL

Arbitration Eligible Year and what they earned in Millions for 2012/What they will make in 2013:

Phil Hughes SP:  3.2 (2013 is an Arbitration Avoided 1 Year deal worth 7.2 Million.)  Hughes is having his all ‘too familiar’ Spring Training issues and may not start the season on the Starting Rotation Staff.  Hughes is a Free Agent in 2014.  It will be a tough pill to swallow, yet if he has a good year, he will likely price his stock out of the club’s bargaining power to resign him.  He will only be 27 Years Old – and we say what Anibal Sanchez signed for this past offseason.

Boone Logan RP:  1.9 (2013 is bumped to $3.2 MIL)  Logan falls right into the club’s philosophy and will not make or break the teams payroll structure in going forward.  The man is a Free Agent in  2014.

Joba Chamberlain RP:  1.7 (1.9 in 2013) – Chamberlain wants to start again – and if there are any other injuries to the team’s Starting Pitchers – then why not give him a chance.  They have already wrecked his career up enough.  Chamberlain is also A Free Agent in 2014.  He will need to be dominant out of the pen to ask for big $ next winter.  I could see the Yankees inking him to a deal in FA long -term, especially with Rivera retiring. He will be 28 heading into 2014

David Robertson RP:  1.6 (2013 is bumped to $3.1 MIL).  The Yankees are hoping Robertson will take over the reigns as Closer from Rivera next campaign.  It would be cheaper for him to be signed – rather than coveting a Free Agent Closer seeking multiple years past 2014.  Is Arbitration Eligible in 2014 and a Free Agent in 2015.

Total for this Category:  $15.4 MIL

Total Payroll After this category: 195.0 Million

Pre-Arbitration Eligible Players Brackets for first Year of Arb-Eligible/Entry Level Contracts-League Minimum:

Michael Pineda SP:  528K (2014)  This guy is VITAL to the franchises future success.  They traded away a player who would look really good in Pinstripes right now in Jesus Montero.  Being under team control for New York until would serve them well if he can be a solid #2 or #3 Starting Pitcher.  Is Arbitration Eligible in 2014 and a Free Agent in 2017.

Clay Rapada  RP:  525K  (2014)  – Rapada may be used as a Trade chip to retain a Starting Pitcher – who might have an additional year or 2 left on his deal, with the subsequent trading team picking up some of the $ in a salary dump.  (Think Matt Garza).  Is Arbitration Eligible in 2014 and a Free Agent in 2017.

Eduardo Nunez 3B: 524 K (2014)  Back up INF, may have a more significant role in years ahead.  Is Arbitration Eligible in 2015 and a Free Agent in 2018.

Justin Thomas RP: (517K) Clock not started on his Major League Service.

Chris Stewart C:  (483K)  Is Arbitration Eligible in 2014 and a Free Agent in 2017.

Austin Romine C:  (482K)  Is Arbitration Eligible in 2015 and a Free Agent in 2019.

Dellin Betances SP:  (481K)  Is Arbitration Eligible in 2015 and a Free Agent in 2019.

Cody Eppley  RP:  (481 K) Is Arbitration Eligible in 2014 and a Free Agent in 2018.

Cesar Cabral RP:  (480K) Service Clock has not started yet.

David Phelps SP:  (480K)  Would really save the club’s bacon by panning out as a Major League Pitcher.  The organization needs quality players that are team controllable.  Is Arbitration Eligible in 2015 and a Free Agent in 2019.

Total for these 9 players plus giving out four more contracts from Minor League Players (including backup INF Ramiro Pena) would equal 6 Million Dollars. After this category, the payroll would be 201.7 Million.

Buyouts:

A.J. Burnett SP: (8.5)

Rafael Soriano RP:  (1.5)

Total of 10 Million in Buyouts to equal 211.0 Million.  You can probably add 8-15 Million to the coeffuers as injuries will mount.

You hope that Pineda comes back.  The fact your top 7 players represent 120 Million Dollars of your payroll is crippling.  They may just have to try to spend their way out of trouble.  As a Yankees fan, I hope they do this.  Derek Jeter deserves for the club to take one more crack at a World Series.  I believe that 2013 is the clubs last year to be one of the AL’s top contenders for some time.  The Yankees will have to go through a serious face lift after 2013. 

Brian Cashman certainly has his work cut out for him.  The one wildcard is that the Yankees should receive some salary relief from A-ROD (in terms of insurance.)  The club may have already spent that – but if they are serious about one more run, they could fill some holes near the Trade Deadline.  By then, only half the season’s wage would be do to most players.  So if they need another pitcher or 2 and a position starter.  The team might also add Juan Rivera and or Matt Diaz (Minor League Deals) now that Granderson is hurt.  Both of them stand to make $1.2 MIL  in the bigs.

Projected Payroll in 2013:  215-225 Million Dollars (37-46 Million over the Luxury Tax Threshold of 178.5 Million.)

Going Forward:

After this year, significant changes will occur before 2014.  Robinson Cano is off the books and will need to be resigned.  You can look for a new deal in the neighborhood of 7 -8 Years – and in the 175 – 225 Million Dollar Range.  Will Jeter even want to stick around if 2014 is a rebuilding year.  Granderson has priced himself out of the Yankees market with back to back 40 HR seasons.  He would need to revert to his 1st year with the Bronx Bombers – in order to have him in the payroll stratosphere they would like them.  However if he played like that, you wouldn’t want him back anyway.  They will go cheap for at least one season. 

Pettitte, Rivera, Kuroda, Granderson, Youkilis, Hughes, Chamberlain, Cano, Hafner and Aardsma will all be Free Agent’s again.  Out of the players returning.  The Yankees will just not be as competitive in 2014 as they could be in 2013.  A-Rod would need to turn back the clock – plus they players they end up bringing up for their Minor League.  At least you will have Ichiro Suzuki manning Left Field, Brett Gardner in Center Field.  Teixeira and A – Rod will be 2 other players still on the Roster.  If Cano doesn’t resign, you would have some additional spots to sign new players.  Yankees Management would love Jeter to play in one more season during the 2014 year.  At least he would only make for 2014.

Granderson is in the same predicament as about 10 other Yankees who become Free Agent's in 2014.  He must heal from injury first.

Granderson is in the same predicament as about 10 other Yankees who become Free Agent’s in 2014. He must heal from injury first.  Photo courtesy pf Marc Smilow.  (Granderson with MLBReports.com Junior Reporter Haley Smilow.

 *** The views and opinions expressed in this report are those of the author and do not necessarily reflect the views of mlbreports.com ***

***Chuck Booth- Lead Baseball Writer/Website Owner and author of the Fastest 30 Ballgames:   To learn more about my  “The Fastest 30 Ballgames Book” and how to purchase it, click here . You can also follow my Guinness Book of World Record Successful Bid to see all 30 MLB Park in 23 Days- click here.  I am happy to be part of such an awesome Magazine-Style Baseball Website and am looking forward to talking to all of the fans of the MLB.  You can reach me on Twitter here

a  a booth chuck

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About chuckbooth3023

I played competitive baseball until 18 years old and had offers to play NCAA Division 1 University Baseball at Liberty University. Post-concussion symptoms from previous football and baseball head injuries forced me to retire by age 19. After two nearly made World Record Attempts in 2008, I set a New World Record by visiting all 30 MLB Parks (from 1st to last pitch) in only 24 Calendar Days in the summer 0f 2009. In April of 2012, I established yet another new GWR by visiting all 30 Parks in only 23 Calendar Days! You can see the full schedule at the page of the www.mlbreports.com/gwr-tracker

Posted on March 4, 2013, in MLB Payroll and Contracts, The Rest: Everything Baseball and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. 5 Comments.

  1. Hi
    With all the talk about the 2013 lineup I am also
    wondering if the 2012 management and coaching staff
    are with a contract for another year?
    Thanks
    George

    • Girardi is signed though 2013 and Cashman in signed through 2014. Thanks George. There could be big changes coming for players and management if they don’t go to the World Series in 2014, or at least be ultra competitive in the playoffs.

  2. What about some creative contracts? For example pay Mariano Rivera 5 million / yr for two years with a buy out of 5 million for 2014. This of course would be based on his definite retirement.So actually he would get 10 million for his time just paid out differently. Factor in other pitchers and we suddenly would have some freed up cash. Other possibility would be to refinance A-Rod’s. It currently runs till 2017 or so that means potentially the Yankees have around 114 million and maybe 30 million more in incentives.Could offer him a contract for around 20 million a year for 6 years and a buy out of 14 million for 7th yr.

    • Those are good suggestions for sure Donnie. Those would help circumvent the current Luxury Tax Threshold. The only problem is that will punish the future years for the club. I do like if for 2013 though and especially if MO comes back. Yankees should make one more stab at a WS and then it is time to re-tool after 2013, They should never be in REBUILD mode, yet the club must become a little younger. I hope you also read the Article I wrote yesterday on suggested FA signings. i said I thought they should sign Juan Pierre for LF, Suzuki for RF, Marco Scutaro to play 3B and move A-Rod to a permanent DH. I would love the club to also look at Jeff Keppinger as he can play all infield positions and DH. http://mlbreports.com/2012/11/10/contact/

  1. Pingback: The Yankees Are In Desperate Mode And Need Cash To Spend Some More $$ In 2013 | MLB reports

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