The Yankees’ $189 Million Reality

The mandate the Yankees are under to reduce their payroll to $189 million by 2014 isn’t a capricious decision designed for ownership to maximize profits and for the baseball operations to bolster their credentials in the industry by winning without the limitless payroll that was one of the important hallmarks of the club from 1996 on through 2012 when they won five championships and made the playoffs every year but one. It can’t be avoided: the Yankees won year-after-year, in part, because of their spending power. While it’s an easy argument to say that with George Steinbrenner gone and the more thoughtful and less maniacal Hal Steinbrenner holding the most sway over the pursestrings, the family is trying to line their pockets to a greater degree—a degree that was secondary to the Boss’s bottom line: winning. It’s also an easy argument to make that GM Brian Cashman wants to lower the payroll to get his share of the credit pie that has gone to the new age thinkers in baseball like Billy Beane, Theo Epstein and Andrew Friedman because they were either working under parameters that made it a necessity for them to find bargains, get lucky, or formulate new strategies to compete with the big spenders in baseball; or, in Epstein’s case, were trying to win with a souped up version of Moneyball using stats backed up by a massive payroll.

Both are probably, to a point, accurate. But the Yankees are trying to get under the $189 million threshold by 2014 for the cold hard fact that if they don’t, they’re going to have to pay a penalty of 50% for going over that amount. It also has to be understood that the Yankees payroll will not be permanently limited by that 2014 number. If they’re under $189 in 2014, by 2015, they’ll again be able to spend as the Yankees have spent in the past—with no concept of restraint—because the penalty will revert to the lowest level of 17.5%.

It’s short-term. What this means in the near future, though, is that there won’t be the headlong dive into free agency and by taking huge contracts off the hands of other clubs in trades because right now the Yankees must be cognizant of their payroll. There’s no getting around it.

There are methods to achieve this end. Some clubs, like the Athletics and Rays, let their players play under the constraints of the collective bargaining agreement where they can’t be free agents until they’ve accumulated six years of service time. Or they sign them to long-term contracts that are agreeable to both sides, buy out their arbitration years and perhaps the first couple of years of free agency giving the players a guaranteed payday they might not get if they don’t perform or get injured. This is a method to keep the youngsters they’ve developed.

The Rays have essentially ensured that their star Evan Longoria will be a Ray for the duration of his career with the long term deals he signed as a rookie and the extension he agreed to last week. It’s conceivable that Longoria cost himself an extra $100 million or more with the contracts he signed. That’s his choice and the Rays took on significant risk as well.

Teams can do as Beane did a year ago (and several times before) and clear out the house of veterans who are set to make big money in exchange for the best prospects they can get their hands on and restart the process over and over again.

Or they can do what the Yankees are doing by signing veterans in their mid-to-late-30s to 1-year contracts, pay them handsomely, and hope they stay healthy and perform up to what they were in their primes.

Because the Yankees are saying they’re serious about this “$189 million by 2014” statement and have always backtracked on prior payroll-limiting endeavors, there’s a belief in the Yankees universe that they’re biding their time and waiting; that they’ll open the checkbook once they realize that a playoff appearance is something to be earned and not a birthright and that they’re ill-equipped to win in 2013 and 2014 as they’re currently constructed; that it’s a matter of time before they pull the same trick they did when they acted as if they had no interest in free agent first baseman Mark Teixeira and the Red Sox were widely expected to sign him before the Yankees struck with lightning quickness and decisiveness getting the first baseman and keeping him away from the Red Sox. This completed the 2008-2009 shopping spree with Teixeira joining CC Sabathia and A.J. Burnett to repair the failure of 2008 when they had again tried to lower payroll by going with homegrown pitchers and were rewarded with a missed playoff spot and indignation permeating their organization, the media, and fans.

Here are the numbers to understand the circumstances the Yankees are now in. Their guaranteed contracts for 2014 are as follows:

Alex Rodriguez—$25 million

Mark Teixeira—$22.5 million

CC Sabathia—$23 million

Derek Jeter—$8 million player option ($3 million buyout)

That comes to $75.5 million. There are the players who are movable and exchangeable with other similar contracts such as Joba Chamberlain, Phil Hughes, David Robertson, and Eduardo Nunez. So you can figure that the rest of the starting rotation and filling out the bullpen won’t be super-expensive. Robinson Cano is a free agent at the end of 2013, is represented by Scott Boras and will want somewhere between $190-220 million. Ignoring the risk of giving a lackadaisical player like Cano such a massive contract, they’ll do what needs to be done to keep him with a backloaded deal.

With all of that comes the vicious truth that for 2013, the Yankees are not jumping in on Zack Greinke; they’re not signing Josh Hamilton; and they’re not trading for Justin Upton (his no-trade clause includes the Yankees, so they’d have to redo his long-term contract). They let Russell Martin leave when it was widely reported that they wanted him back when the Pirates—the Pirates—gave him 2-years and $17 million. These are the same Pirates that once functioned as a big league farm club for the Yankees to take their stars off their hands for whatever crumbs of prospects the Yankees deigned to give them.

Losing Martin isn’t that big of a problem, but their current catching depth chart consists of Francisco Cervelli, Chris Stewart, Eli Whiteside, and minor leaguer Austin Romine. They don’t have a right fielder with the pending departure of Nick Swisher and the talk of bringing Ichiro Suzuki back comes more from the fans, media and Ichiro himself than it does from the Yankees. Maybe—maybe—they’re downplaying possible interest in Mike Napoli and will sign him to a team-friendly deal in which he’s paid well for 2013, has a reduction in salary in 2014, and has a back-end raise in years 3 and/or 4. This would be done based on need and to keep up appearances as the club is under expanding ridicule and anger for their lack of action.

This concept that their offense is still good enough is ignoring that they don’t have a catcher; they don’t have a right fielder; they don’t have a DH; Jeter won’t repeat 2012; and A-Rod and Curtis Granderson spent most of the second half of 2012 in a fog. They can’t go into 2013 with an offense looking like it does right now and logically believe they’re title contenders.

The 2013 team is elderly by athletic standards and the days of a 35-43-year old player posting numbers better than he did when he was 28 ended with drug testing. As much as Yankees apologists refer to the annual playoff appearance and utter pompous statements of “World Series or failure,” extolling the self-proclaimed “specialness” of the Yankees brand, the reality is that the Yankees are currently, on paper, the third best team in the AL East behind the Rays and Blue Jays; are in the same predicament with the Red Sox of clinging to what was; and have a resurgent Orioles club glaring at them from their wing rather than their posterior.

Jeter and Rivera are recovering from severe injuries; A-Rod is breaking down physically and when he can play is a threat emeritus rather than a mid-lineup basher—and now it’s being reported that A-Rod needs more hip surgery and may miss part of 2013; they have to rely on Hiroki Kuroda and Andy Pettitte to anchor the rotation behind Sabathia, who is also coming off of elbow surgery and has a massive amount of wear on his tires.

Is all of this likely to yield the same results it has in the past?

These are the Yankees of today and for the next two seasons. They have money, but it’s tied up. They’ll spend it, but it’s not going to be for long term improvements via the not-so-free market until after the 2014 season. By then they might be dealing with two years of missed playoffs, mediocrity or, if things go worst case scenario, finishes at or under .500. There’s a sense of disbelief among the media and fan that this is the way the Yankees are doing business; that it’s a ruse and everything will go on as before once they’ve grown tired of teasing their fans.

Don’t say the worst happen because it just happened to the Red Sox and, to a lesser degree, the Marlins, Phillies, and Angels. No one thought the Red Sox would ever fall to the depths that they did in 2012 and it can happen to the Yankees in 2013-2014. Dynasties—including that of the Yankees—have collapsed before. It’s not farfetched to predict their downfall again because the pieces are in place and getting more entrenched by the day. In fact, it’s inevitable.

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The Meaning of the David Wright Signing

A week after Black Friday, it was Blue and Orange Friday as the Mets signed their star third baseman David Wright to an 8-year contract extension for $138 million. Of course this decision elicited reactions far and wide. Let’s take a look at the reality of the Wright contract for everyone involved.

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For David Wright

I wrote about Wright’s decision to re-sign with the Mets yesterday.

Wright had the choice of waiting until his chance at free agency after next season and face the prospect of being traded or getting hurt. Maybe he would have had a career season and put himself in position to make perhaps $20-30 million more on the open market; maybe he would’ve been traded to a preseason/mid-season title-contender.

Or it could’ve ended badly.

Wright saw what happened to his friend and former teammate Jose Reyes when he chased the money, went the the Marlins and now is playing for the Blue Jays in Canada on artificial turf for the next five years. There was the added attraction of Wright being a Mets icon who will rewrite their record book, be the best position player in their history and to never wear another club’s uniform. The offer was on the table, he wasn’t going to do much better as a free agent and didn’t really want to leave apart from a fleeting, “what if?” curiosity of what it would be like elsewhere.

In the end, he chose to stay in the only baseball home he’s ever known.

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For the Mets

There’s no getting around how important it was for the Mets to keep Wright not just because he’s a top 5 third baseman in all of baseball and their most popular player, but because they had to undo the perception of the club being broke and having little interest in: A) spending money; B) give the fans what they wanted.

Like Carlos Beltran functions as a symbol of the near-miss of the 2006 team; Jason Bay the symbol of the desperation to hold onto the shriveling tendrils of contention; Reyes the star who spiraled down the drain like the Bernie Madoff Ponzi scheme money that gutted the Wilpons’ finances, Wright is a bridge to the better times of the Mets and can be the elder statesman for the future.

It was important for the club to step up, show the fans, media, and the rest of baseball that they were willing to do what it took to keep the one player they had to keep. It wasn’t simply an on-field maneuver. Truth be told, the rebuilding might have been expedited with a lower payroll had they traded Wright for a package of prospects—in fact, I wouldn’t be surprised if there were loud voices in the front office that wanted to do that exact thing. But for the same reason they didn’t trade Reyes when many were screaming that they should, there were collateral reasons not to pull the trigger on Wright.

And here’s a flash about Reyes: the Mets did want him back. To say that they didn’t is silly. What they didn’t want to do was give $100 million to a speed player whose defense was markedly declining and who had had multiple injuries over the years when they knew they were also going to need money to sign Wright. What they were hoping was that the Reyes market crashed and he had to return on a deal the club found reasonable. Had the Marlins not jumped in with their backloaded $106 million deal, that’s exactly what would’ve happened. In addition, the Mets had a big league ready replacement for Reyes in Ruben Tejada. No such replacement on or off the field existed for Wright.

It didn’t have racial undertones of choosing the handsome, steady white guy over the flashy and injury prone Dominican. It was a cold baseball decision made by the front office—exactly the type of rationality they wanted when the hired Sandy Alderson as the GM to replace the “I want to make people happy immediately regardless of long-term cost” Omar Minaya.

As for the repeated reference to Fred Wilpon’s ill-advised comment in the New Yorker Magazine that Wright wasn’t a superstar player, it was a year-and-a-half ago. Do you really believe that Wright and Wilpon haven’t since spoken and hashed it out? The Mets paid him like a superstar and Wright will be the first one to tell you that he’s not an Albert Pujols or Alex Rodriguez in their primes. How many true “superstars” are there in baseball? Not many and Wright, along with many other All-Star players, is not a prototypical superstar. It’s not the insult it’s portrayed to be and in the end, what’s the difference?

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For the rest of baseball

Wright is very popular around baseball and if he’s willing to invest the rest of his career to the Mets, it’s a signal that the circumstances are getting better around the entire franchise. Because of the lack of money and last four seasons of steady decline and rebuild, the Mets were a “no go” destination unless a player had no other choice. As we’ve seen with the Orioles and Athletics on the positive side and the Red Sox and even the Yankees on the negative side, that is more of a function of how they’re viewed in the moment.

With Wright onboard and the young pitching Matt Harvey, Zack Wheeler and Jonathon Niese that has much of baseball salivating to get their hands on them, along with NL Cy Young Award winner R.A. Dickey, the Mets have the foundation in place to make a serious move into legitimate contention.

Wright signing and the Mets paying him tells the rest of baseball that the talk of wanting to keep Wright wasn’t lip service to placate without a true intention of following through. They followed through.

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For the fans

Even the most miserable Mets fan who didn’t want Wright back, who is still complaining about the supporting cast they’re surrounding the third baseman with, has to feel some sense of happiness that they’re keeping someone and not masochistically pleading for a repeat of the flogging they took for their dealings with Reyes.

They kept Reyes rather than trade him because, as said before, they wanted to keep him; and they also wanted to sell a few more tickets in a lost season. It was a retrospective mistake, but it was more understandable—given the circumstances—than the simplistic entreaties that they “should’ve traded him” would suggest.

Mets fans will still complain, but it won’t be about not holding onto their own players. For now anyway.

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For the media

As usual, the Mets can’t win with the media. Whatever they do, it’s twisted to suit the narrative of a moderately brainless idiot who occasionally and by mistake manages to get something right.

This is exemplified by today’s passive aggressive piece in the New York Times by Tyler Kepner. Amid the begrudging credit given to the club for keeping their third baseman, Kepner took the cheap shots that have become a prerequisite in this market by, of course, mentioning the Wilpon comment; rehashing past mistakes such as Oliver Perez and Luis Castillo; questioning the wisdom on the part of Wright and the Mets in staying together; and naturally making sure to mention the supposed superiority of the Yankees who, according to Kepner, have a “business model sets them up to contend for the title every year.”

That same Yankees’ business model that: has an array of immovable contracts; Derek Jeter appearing as if he’s packing on the pounds to audition to be Engelberg in The Bad News Bears—20 years later; ancient players from top to bottom; lost Russell Martin to the Pirates; and has, topping their catching depth chart, the equally horrendous Eli Whiteside and Chris Stewart.

Referencing the Yankees as anything to admire right now is an outrageous display of clinging to the past and a none-too-sly shot at the Mets during a brief moment of happiness.

Kepner offhandedly points out the acquisition of Wheeler from the Giants for Beltran in the tone of the Mets being a broken clock that manages to be right twice a day, then contextualizes it by equating the decision to trade Angel Pagan—a talented player who is baseball-stupid—as the Giants getting “even.” Like the Wright signing, the Pagan trade made sense at the time. It didn’t work, but the way to judge any trade/free agent signing/draft pick is whether it was logical. Anything other than that is second guessing.

What the Mets have done under Alderson is to retreat from the Wilpons’ prior modus operandi with GMs of the past and, instead of concentrating on doing what the media wanted them to do to garner good press, are pushing back and running the club as it should be run. The same press that had Minaya thinking everyone is his friend is intimidated by Alderson because the GM sees right through them and won’t respond to their tactics—tactics that Kepner again employs and will be roundly ignored if not ridiculed by those who know better and understand his intentions with such a transparent piece.

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This is a positive move for the Mets. They did what needed to be done in keeping Wright. That is the only way in which this signing must be judged. It makes sense now, therefore it makes sense, no matter what happens in the future and over Wright’s career that will be as a Met and a Met alone.

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MLB Non-Tenders—List and Analysis

Here’s a list of the MLB players who were not tendered a contract for 2012.

Among the non-tenders are some surprising names that are sure to draw widespread interest.

The most interesting/intriguing players are discussed.

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Fabio Castillo; RHP; age 22—Texas Rangers

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Dan Cortes; RHP; age 24—Seattle Mariners

Cortes is huge (6’6”, 235) and has put up solid strikeout numbers in the minors as both a starter and reliever. He can be wild but there’s a pitcher in there somewhere; his hits/innings pitched ratio of 659/691 and that he doesn’t allow many homers (50) make him an attractive look-see.

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Willie Eyre; RHP; age 33—Baltimore Orioles

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Cole Garner; OF; bats and throws right; age 27—Colorado Rockies

Garner’s shown the ability to hit, hit for pop and run in the minors and never got a chance in the big leagues.

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Chris Gimenez; C; bats and throws right; age 29—Seattle Mariners

Gimenez is a journeyman who doesn’t hit, but he can throw from behind the plate.

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Clay Hensley; RHP; age 32—Miami Marlins

Hensley can start or relieve and be useful-to-good if he’s healthy. He missed substantial time in 2011 with a shoulder problem.

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Jeremy Hermida; OF; age 28 in January; bats left, throws right—San Diego Padres

Hermida’s become an “oh him” guy where everyone wants to pick him up and hope they unlock the talent that made him a first round pick. He has power and is a pretty good defensive corner outfielder.

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Koyie Hill; C; age 33 in March; bats both, throws right—Chicago Cubs

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Rich Hill; LHP; age 32 in March—Boston Red Sox

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Jeff Keppinger; INF; age 32 in April; bats right, throws right—San Francisco Giants

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Hong-Chih Kuo; LHP; age 30—Los Angeles Dodgers

This is a pitcher who’s going to be in demand, might get a multi-year contract and will either be a huge success or a disaster.

He’s had Tommy John surgery twice; he missed a large chunk of 2011 with an anxiety disorder and has had back problems.

But when he’s right, he’s unhittable with a near 100 mph fastball and wicked slider.

Expect the big guns to take a serious look at Kuo.

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Aaron Laffey; LHP; age 27 in April—Kansas City Royals

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Jose Mijares; LHP; age 27—Minnesota Twins

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Peter Moylan; RHP; age 33—Atlanta Braves

The side-arming Moylan missed much of the 2011 season with a rotator cuff problem. Presumably the Braves want him back but didn’t want to pay him in arbitration.

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Micah Owings; RHP/PH; age 29—Arizona Diamondbacks

Owings found a home in the bullpen in 2011 and he’s a weapon off the bench with his bat when he’s not pitching. I’d expect him back with the Diamondbacks.

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Ronny Paulino; C; age 31 in April; bats right, throws right—New York Mets

No one on the Mets had a nice word to say about his work ethic or attitude.

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Jo-Jo Reyes; LHP; age 27—Baltimore Orioles

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Will Rhymes; 2B; age 29 in April; bats left, throws right—Detroit Tigers

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Joe Saunders; LHP; age 30—Arizona Diamondbacks

Saunders gives up a lot of hits; a lot of home runs; his control and stuff aren’t particularly great; but he’s durable. If you put him on a good team that scores a lot of runs; plays their home games in a big ballpark; or has a good bullpen, he’ll win 15 games, lose 13 and give 200 innings.

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Luke Scott; OF/1B; age 33; bats left, throws right—Baltimore Orioles

Scott missed most of 2011 with a shoulder injury. His home/away splits with the Orioles are atrocious—he murdered the ball in Camden Yards and was useless on the road. He has power and can be a veteran threat off the bench.

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Doug Slaten; LHP; age 32 in February—Washington Nationals

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Andy Sonnanstine; RHP; age 29 in March—Tampa Bay Rays

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Ryan Spilborghs; OF; age 32; bats right, throws right—Colorado Rockies

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Ryan Theriot; INF; age 32; bats right, throws right—St. Louis Cardinals

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Eli Whiteside; C; age 32; bats right, throws right—San Francisco Giants

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There are some players who will help certain teams—possibly help them a lot—but, as usual, the non-tender wire is the scrapheap where luck trumps analytical skill.

Unless we’re talking about the Pirates.

But they didn’t non-tender anyone they could’ve used as they did with Matt Capps two years ago.

Then again, they’re the Pirates and doing something stupid is part of their routine at one point or another. They just haven’t done it yet. But they will.

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