Spendthrifts

Or how the threat of a future luxury tax forced the New York Yankees to get better for less.


By Michael Izzo

(Callum Hughson/Mopupduty.com)

If the New York Yankees had missed the World Series in the past, they would simply throw as much money as necessary to fill the few holes that weren’t covered by their mega-payroll. They would have given C.J. Wilson seven years and over $100 million, or paid $70 million just to sit down and negotiate with Yu Darvish. They might have even tried to trade Mark Teixeira (currently in the middle of an eight-year $180 million contract), while retaining some of his salary, just to overpay Albert Pujols or Prince Fielder.

But that was the Yankees of old. With the Boss gone, the Yankees have a new goal, in addition to a 28th World Championship: finally getting under the luxury tax.

The most shocking part of all? They’re actually going to do it.


In 2014, the salary cap will begin at $189 million and while the Yankees currently flirt with a $200 million payroll, they are well within that goal. A.J. Burnett’s contract will be off the books by then, even if he isn’t traded in the meanwhile. Getting under that cap, even for a single year, will reboot their luxury tax penalties and save them tens of millions of dollars. Even for the Yankees, that’s a hefty incentive.

But they would never do this at the expense of their ballclub, and since starting pitching was the clear need, Brian Cashman and co. had to get creative. No Wilson, Darvish, or Mark Buehrle seemingly left them with minimal options, and as spring training grew closer, it looked as if the rotation was going to be C.C. Sabathia, Ivan Nova, Freddy Garcia, A.J. Burnett, and Phil Hughes.

Then came the curveball.

(MLB Headshots/ESPN)

Last Friday, the Yankees traded their top prospect, slugger Jesus Montero (and pitcher Hector Noesi, who could have a very high ceiling), for Seattle’s young pitching stud, Michael Pineda.

My initial reaction was that the Yankees settled. Montero was at the core of a lot of potential blockbuster trades over the past few years, including Roy Halladay and Cliff Lee. King Felix would be one thing, but what do we know about Pineda? He got off to a hot start last year, making the All-Star game before having a big drop off in the second half of the season. Meanwhile, Montero showed the Yankees faithful just how friendly he had gotten with the short porch in right field. After all the hype, Montero was gone, and not for a sure thing.

But then I talked myself into it. “The Yankees must really love this guy if they were willing to trade Montero to get him! He’s so big and durable. When he gets his stamina up, his ceiling is through the roof!” Plus, he still has five years of team control (though Montero had six).

Did I believe everything I was saying? Partially, but when news broke of the Hiroki Kuroda signing a one-year, $10 million contract, I was fully on board. All of a sudden, the team’s biggest weakness became yet another strength, solidifying an already highly competitive team.

(Simmons/News)

The new rotation:

C.C. Sabathia

Michael Pineda

Ivan Nova

Hiroki Kuroda

Phil Hughes/Freddy Garcia/PleaseGodNotA.J. Bunett

Plus, David Robertson and Joba Chamberlain, signed to avoid arbitration. Those two, along with Hughes and Garcia, all took cheap, one-year contracts.

Does it hurt to say goodbye to Jesus Montero? Hell yes. But the Yankees are a better team than they were a week ago. They set themselves up well for the long term, all without emptying their pockets.

Overspending for the biggest free agent just because they can is a thing of the past. They don’t need another Carl Pavano, Kevin Brown, or Randy Johnson. They’ll still shell out big bucks for young talent, but A-Rod should be happy he signed when he did. Since the New York Yankees are getting smarter, there’s no way he would have got his money.