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New York Yankees Payroll In 2016 + Contracts Going Forward

 

With almost $100 MIL tied up in contracts for Sabathia, A-Rod, Teixeira and a potential Tommy John Surgery candidate in Masahiro Tanaka, this New York squad is in some deep trouble for next season. Despite the recent playoff misses, and injury prone players brought in by Brian Cashman, the club saw fit to grant him a 3 year extension last month. It may take a small miracle for them to make a playoff spot next campaign..

With almost $100 MIL tied up in contracts for Sabathia, A-Rod, Teixeira and a potential Tommy John Surgery candidate in Masahiro Tanaka, this New York squad is in some deep trouble for this season if injuries occur.  It may take a small miracle for them to make a playoff spot next campaign again without spending some cash.

Chuck Booth (Owner/Lead  Analyst) 

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Brian Cashman can finally see some relief from some exorbitant contracts plaguing him from the last several years.

2016 sees the last year on deals for Aroldis Chapman,  C.C. Sabathia, Mark Teixeira and Carlos BeltranAlex Rodriguez is still on the book for one more year after this.

Sabathia does have a Vesting Option for $25 MIL if salary guaranteed if he 1) does not end 2016 on the disabled list with a left shoulder injury, 2) does not spend more than 45 days in 2016 on the disabled list with a left shoulder injury or 3) does not make more than six relief appearances in 2016 because of a left shoulder injury.

The Yankees can’t guarantee this will happen. Therefore the club must treat this contract as part of their deal for 2017 as well.  The Buyout would be $5 MIL.

Sabathia’s drinking aside, they are paying for the good years right now, and he is no better than a 5th Starter – and at 36 years of age with 3000+ IP logged for his career, there may be not much left in the tank.

The flamethrowing Lefty Cuban will be suspended 30 games to start the campaign, and will forfeit about $2.3 MIL of his 1 YR deal worth $11.33 MIL. This was an awesome gamble by the Bronx Bombers as he will only cost a shade over $9 MIL for 2016 - and they can still hit him with the Qualifying Offer after the year to receive a draft Pick coming back.

The flamethrowing Lefty Cuban will be suspended 30 games to start the campaign, and will forfeit about $2.3 MIL of his 1 YR deal worth $11.33 MIL. This was an awesome gamble by the Bronx Bombers as he will only cost a shade over $9 MIL for 2016 – and they can still hit him with the Qualifying Offer after the year to receive a draft Pick coming back.  Chapman is still just 28 years old.

Aroldis Chapman was added via trade (Traded by the Cincinnati Reds to the New York Yankees for Rookie Davis (minors), Eric Jagielo (minors), Tony Renda (minors) and Caleb Cotham. in the biggest move pulled by Brian Cashman in the offseason. 

Teixeira had a great 4 months in 2015, and was fully deserving to be paid handsomely for it, but it was his apparent successor of Greg Bird who had given the team some options going forward – before being hurt for the whole year

Tex comes off the books after 2016.  With the health of Bird questionable for 2017, perhaps the club will take a second look at extending Teixeira for a few more years at a reasonable rate.

Carlos Beltran will be compared to Curtis Granderson for one more year – and it is not even close.  I was the first one to say the Yankees would regret that move.

Grandy had a wicked year for the NL Pennant winners. While Beltran had a decent second half, he is not the player the Bronx Bombers needed to supplement their team.

The club also addressed its horrible Second Baseman woes of 2014 and 2015 – by adding Starlin Castro in a deal. 

This guy has at least $41.4 MIL coming to him over the next four years – with a $16 MIL Team Option for 2020 – that will likely be cheaper than a Qualifying Offer will be.

There is some more good news.  If New York has finally found a young stud pitcher in Luis Severino.  Lets hope he doesn’t go the way of Joba Chamberlain or Phil Hughes after taking the league by storm.

Masahiro Tanaka continues to be ten seconds from a TJ Surgery, but has held up way longer than anyone initially thought.  As a betting guy, I would still say he is due at any time.

Under the young Steinbrenner’s regime (compared to their old man), the team has shown some fiscal restraint.  2016 will be another year they are over the Luxury Tax Threshold, and suffer a 50% penalty for it, but they are inching closer to the mark every year of trying to fall under.

The total team salary ranged near $219 MIL in 2015, so the Pinstripers were on the hook for a levy of $15 MIL.  That is much better than doling out cash to the tune of $10 MIL more in 2014.

Renaissance years by Mark Teixeira and A-Rod tallying 30+ HRs each must have shocked even the brass in the organization.  They might not be able to count on that production this campaign.

Furthermore, Joe Girardi managed to steer the often injury riddled Starting Rotation through a full year.  But again, that was lucky as well.

With Brett Gardner and Jacoby Ellsbury taking up the 1-2 slots in the lineup and the LF and CF positions, it would not have been wise to fork out too much money on an OF this year.  If Beltran can stay healthy as well, he would serve well as the RF.

Aaron Hicks was brought in via trade – and the organization will hope he can equal the production Chris Young gave them as the 4th OF the last few years.

Beltran would also be ideal as the DH against tough Right Handed Pitchers.

With the Bullpen…There is no worries at the back end of your staff with Aroldis Chapman,  Andrew Miller and Dellin Betances leading the charge.

The club will miss a guy like Justin Wilson for the 1st month – in manning the late inning Relief Lefty Setup role for the Relief Core.

The Yankees should have spent every waking dollar on 2 more Starting Pitchers that can run with the ace status.  

Look, you almost have no chance to get underneath the salary cap in 2016 either, so why not improve the team and take a run at a winnable Division?

Brian Cashman was lucky that A-Rod, Teixeira and Beltran contributed 79 HRs and were healthy for the most part of the year, before Tex missed the last 6 weeks of the season. This aging squad will be hard pressed to duplicate that feat this year. Cashman may have to deal for several players in the last year of their contract. If New York is to contend for a playoff spot, I suspect they will add up to $25 MIL in player salaries along the way via trades.

Brian Cashman was lucky that A-Rod, Teixeira and Beltran contributed 79 HRs and were healthy for the most part of the year, before Tex missed the last 6 weeks of the season. This aging squad will be hard pressed to duplicate that feat this year. Cashman may have to deal for several players in the last year of their contract. If New York is to contend for a playoff spot, I suspect they will add up to $25 MIL in player salaries along the way via trades. This would pull them up to around $250 MIL for the year, and would cost them $30 MIL extra in Luxury Tax Threshold penalties.

In 2017, the contracts only equal $130 MIL, and could withstand a few new signed pitchers into the fold for multi-year deals. 

In 2018, A-Rod will no longer be there either, so adding the pitchers right now when the crop of FA’s that are #1’s had never been higher.

The time to drop under the Luxury Tax will be after the new CBA is put into place – and following the 2017 year.

The Yankees aren’t even the biggest abusers in the MLB now.  That distinction goes to the Dodgers who spent nearly $100 MIL dollars more than the Yankees in 2015 – who were at #2.

In 2017, or 2018, you could also have Brian McCann take over some of the duties at 1B once Teixeira is gone.

The club still has Gary Sanchez coming up the pike at Catcher, and he may get a chance after they club flipped John Ryan Murphy for Aaron Hicks this winter.

Again, the one thing I caution is that Tanaka may go down at any point.

Michael Pineda is still solid to be in the #3 slot (behind Tanaka and Severino) – and an improving Nathan Eovaldi at #4 to begin the year.

If you signed any Free Agent Pitching at all, you could have started Severino in the Bullpen, or even in the Minors to watch his Innings limit. 

I would rather not have Ivan Nova or Sabathia in the Rotation if possible – but both are probably vying for that 5th spot in the rotation.

Guaranteed Contracts/POS/AGE:

CC Sabathia – SP (35):  Makes $25 MIL in 2016 and $25 MIL for 2017 if he doesn’t have his left shoulder hurt.  Read that stipulation at the top of the article.

Mark Teixeira – 1B (36):  $23.1 MIL total for 2016 – and is a Free Agent in 2017

Carlos Beltran – OF (39):  This is the last  year of his deal is for $15 MIL.

Masahiro Tanaka – SP (28):  Tanaka will make $22 MIL per year for each season from 2016 – 2019 and then makes $23 MIL in 2020.  There is a player opt out clause after 2017.

Assuming Tanaka is healthy despite his chronic arm troubles, he will probably stay with the guaranteed cash New York is paying him.

Jacoby Ellsbury – CF (32):  The quickly aging Outfielder makes $21.1 MIL for every year between 2016 – 2020.  There is a Team Option for 2021 at $21 MIL or a $5 MIL Buyout.

Alex Rodriguez – DH (41):  A-Rod makes $20 MIL for both of 2016 and 2017.  He does have the bonus if he club 28 HRs more to pass Babe Ruth for 3rd on the ALL – Time.

That calls for another $6 MIL bonus.  He should pass that if he plays with regular AB in the next 2 seasons.

Brian McCann – C (32): Brian McCann makes $17 MIL a year for each of the seasons between 2016 – 2018. A 2019 Team Option will vest if he totals 1,000 PAs from 2017-18, catches 90 games in 2018 and is not on the disabled list at the end of the 2018 season.

Brett Gardner – LF (32);  The only Starting position player that was drafted by the organization, makes $13.5 MIL in 2016, $12.5 MIL in 2017 and $11.5 MIL in 2018 – before hitting the open market in 2019.

Chase Headley – 3B (32):  The Yankees have the switch hitting hot corner hitter has 3 years left on his deal from 2016 – 2018, where he collects $13 MIL each season.

Starlin Castro – 2B (26):  Castro makes $7.9 MIL in 2016. $9.9 MIL in 2017, $10.9 MIL in 2018 and $11.9 MIL in 2019.  There is a Team Option for 2020 that calls for $16 MIL or a $1 MIL Buyout

Aroldis Chapman – CL (28):  Chapman is in the last year of his contract.  His cash was $11.33 MIL, but he will lose $2.3 MIL to his 30 game suspension

Andrew Miller – CL (31):  A nice valued contract at $9 MIL per year for the next 3 years (2016 – 2018.)

Total Money for this Category for 2016: $200 MIL

Arbitration Eligible/POS/AGE

1st Year

Didi Gregorius – SS (25):  As a Super ‘2’ Arbitration Eligible Player, this is the 1st year of 4 straight the SS will collect Arbitration.  He makes $2.4o MIL this campaign

Total Money for this Category – $2.4 MIL in 2016.  Total team Salary – $202.4 MIL

2nd Year

Nathan Eovaldi – SP (26): Earns $5.6 MIL for 2016, and has one year more of eligibility in 2017 before Free Agency in 2018.

Michael Pineda – SP (27):  Earns $4.2 this year.   Pineda struggled in the 2nd half, and ended the year with a 4.37 ERA., and has one year more of eligibility in 2017 before Free Agency in 2018.

Dustin Ackley – 2B/OF (28):  Ackley makes $3.2 MIL In 2016.  and has one year more of eligibility in 2017 before Free Agency in 2018.

Total Money for this Category – $13 MIL.  Total team salary $215.4 MIL

3rd Year

Ivan Nova – SP (30):  Nova made $4.2 MIL in 2016 – and is a Free Agent after the year is over.

Total Money for this Category – $4.2 MIL.  Total salary: $219.6 MIL

Dead Money POS/AGE:

Martin Prado – 3B (33):  $3 MIL for 2016.  This is the last year the Yanks pay for Prado to play in Miami.

Total Money for this Category – $3 MIL. Total salary:$222.6 MIL

Entry Level Contracts POS/AGE

Dellin Betances – RP (28):  Has one more year of team control. 3 years of Arbitration go from 2017 – 2019 and is a Free Agent in 2020.

Greg Bird – 1B (23):  Is Arbitration Eligible from 2019 – 2021 and a Free Agent in 2022.

Luis Severino – SP ( 21): Is Arbitration Eligible from 2019 – 2021 and a Free Agent in 2022.

Chasen Shreve – RP (25):  Is Arbitration Eligible from 2018 – 2020 and a Free Agent in 2021.

Slade Heathcott – OF (25):  Is Arbitration Eligible from 2019 – 2021 and a Free Agent in 2022.

Rob Refsnyder – 2B (24): Is Arbitration Eligible from 2019 – 2021 and a Free Agent in 2022.

Branden Pinder – RP (26): Is Arbitration Eligible from 2019 – 2021 and a Free Agent in 2022.

Chase Whitley – SP (26): Is Arbitration Eligible from 2018 – 2020 and a Free Agent in 2021.

Mason Williams – CF (24):  Is Arbitration Eligible from 2019 – 2021 and a Free Agent in 2022.

Gary Sanchez – C (22): Contract Status not updated – but should be Arbitration Eligible from 2019 – 2021 and a Free Agent in 2022.

Total Money for this Category – $5 MIL. Total team salary is $227.6 MIL.

The Yankees are already well over the Luxury Tax Threshold by about $30 MIL, which will cost them an additional $15 MIL as 50% penalties are levied in their direction. 

Any player they want to trade for will cost them that additional 50%.  If they do acquire any one – look for guys to be in the last year of their contracts.

New York has been said to be looking to lower payroll in future years. That is a huge reason why they did not sign any Free Agents during the winter. With the new CBA Pending, they also don't know what rules will be enforced for the Luxury Tax going forward, and do not wish to be that much ahead of the limit in going forward. The optimum goal would be to fall under the limit, and reset the penalty.

New York has been said to be looking to lower payroll in future years. That is a huge reason why they did not sign any Free Agents during the winter. With the new CBA Pending, they also don’t know what rules will be enforced for the Luxury Tax going forward, and do not wish to be that much ahead of the limit in going forward. The optimum goal would be to fall under the limit, and reset the penalty. So far they only have 10 players signed for 2017 – at a cost of $130.5 MIL.  Sabathia will likely be bought out to add another $5 MIL Buyout to that if he fails to meet his Vesting Option)

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

I am happy to be back at the helm of the MLB Reports, after completing my record 224 Games in the MLB Trip in 2015.  It was the 4th time I have seen all 30 MLB Parks since 2008. 

During that time away I was fortunate to do 100 Media Interviews and be named the Baseball Blogger Alliance President.

Interview on CSN Philly during the month of July.

Interview on CSN Philly during the month of July.

2016 MLB Team Salaries Links Page here.

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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 . In 2015, I watched 224 MLB Games, spanning all 30 MLB Parks in 183 Days. Read about that World Record Journey at https://mlbreports.com/183in2015/229sked2015/

Posted on March 4, 2016, in MLB Payroll and Contracts and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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