MLB Hot Seat – Brian Cashman, Yankees

Manager Joe Girardi’s contract expires at the end of the season, but if he leaves it will be of his own choosing. There will be an abundance of managerial jobs potentially opening up and all would be appealing to Girardi. The Nationals, Angels, Tigers, Blue Jays, Royals, White Sox and Mariners all have positive aspects. The overwhelming likelihood is that the Yankees will give Girardi a lucrative three-year contract extension no matter who the general manager is. And that’s the question: is Brian Cashman safe? Do the Steinbrenners and Randy Levine want to keep him and does he want to stay?

There is circumstantial evidence that the answer is no on both counts. Hal Steinbrenner’s convening of an organization staff meeting is a signal that ownership is displeased with how Cashman has run the minor league system. Since wresting control of the baseball operations from the Tampa faction in 2005, his strategy for procuring and developing talent has been found wanting in theory and practice. They haven’t developed anyone to the maximum since Cashman took command and now that the club is cutting back on payroll, it’s turning into a problem that can’t be solved by buying their way out of it. When they were able to just spend to cover holes, it wasn’t as much of an issue.

Beginning from the time the Yankees whiffed on Cliff Lee, players are increasingly choosing other venues as free agents. First it was the big names like Lee that shunned the Yankees, then it turned into the Nate Schierholtz, Raul Ibanez, Eric Chavez-type player. If a club limits its spending and doesn’t have young prospects to use for themselves or trade, they’re going to have a trouble competing. That falls on the general manager.

Another issue for Cashman is the clear chasm between him and ownership. The acquisition of Alfonso Soriano was the second time the GM was overruled by ownership in acquiring a player with the surname of Soriano. Cashman openly disagreed with ownership’s decision to sign Rafael Soriano. In both cases, the deals wound up helping the Yankees.

Before getting into his newfound mouthiness (cursing at Alex Rodriguez; telling Derek Jeter to shop his offer around) and embarrassing peccadillos, his actual baseball work warrants a dismissal. From the viewpoint of ownership, it’s perfectly understandable that they look at the Rays and Athletics, see how they’re able to succeed spending in three and four years what the Yankees spend in one, and place scrutiny on their general manager.

With the newfound austerity, developmental failures and constant drama swirling around Cashman, do they feel comfortable going forward with him as their architect? Hal Steinbrenner is more cautious than his father was. There haven’t been any significant changes made under his watch—no threats to the manager, coaching changes or missives. While they’re patient, they’re not blind either. If the Yankees miss the playoffs this season, someone will be made to pay and the most logical target is Brian Cashman.

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Hal Steinbrenner Summons His Yankees Staff

Hal Steinbrenner is thoughtful, calm and polite. He’s running the Yankees like a business and doing so without the rampant firings, missives and bluster that his father George Steinbrenner used to intimidate, bully and get what he thought were results. It’s the son’s demeanor that is probably even more intimidating to the gathered staff than anything his father ever did. The George Steinbrenner meetings were a regular occurrence with a red-faced Boss shouting, threatening and firing people only to calm down, feel badly about what he’d done and immediately rehire whomever he’d briefly fired. Hal’s different. If he makes changes, they’re made and that’s that.

The news that Hal convened a high-level meeting with his staff is a serious matter to the future of the Yankees’ baseball operations. It’s obviously not lost on him or any of the other Steinbrenners and Randy Levine that the baseball people led by general manager Brian Cashman have been trumpeting home-grown talent in recent years while producing very little of it. For all the talk that the Yankees were going to grow their own pitchers similarly to the Red Sox, Giants and Rays, the last starting pitcher drafted and developed by the Yankees who had sustained success as a Yankee is still Andy Pettitte. That’s twenty years ago.

A new storyline referenced repeatedly is that the Yankees intended to draft Mike Trout in 2009, but the Angels beat them to him. Are they looking for credit for players they wanted to draft four years ago after he’s become one of the best players in baseball?

The defense implying that the Yankees’ success caused them to only have late-round first round draft picks thereby reducing their ability to find top-tier players is weak as well. You can find players late in the first round and in the second and third rounds. The Yankees talk out of both sides of their mouths when they claim that Pettitte (22nd round), Jorge Posada (24th round), and Bernie Williams and Mariano Rivera (undrafted free agents) were due to the Yankees’ methods and then complain about their low draft status and inability to find players. It’s one or the other. Either there’s a Yankees “specialness” or they’re a victim of their own success.

They haven’t signed any impact free agents from Cuba, Japan, Taiwan, Venezuela or the Dominican Republic and their drafts have been failures in the early, middle and late rounds. Dustin Pedroia, Jordan Zimmerman, Giancarlo Stanton, Freddie Freeman, Chris Tillman, Trevor Cahill and Justin Masterson were all second round picks. You can find players if you’re savvy and give them an opportunity. The Yankees’ lack of patience with young players combined with the overhyping to suit a constituency and narrative has certainly played a part in the failures, but they’ve also made some horrific gaffes in evaluation and planning. They have yet to publicly acknowledge that Phil Hughes, Joba Chamberlain, Ian Kennedy, Michael Pineda and Ivan Nova were all mishandled, nor have they indicated a willingness to alter their strategy in building pitchers.

With the military school training that he has, it’s no surprise that Hal—as Commander in Chief of the Yankees—is seeking answers as to why the club’s farm system is so destitute and few players have been produced to help the Yankees at the big league level as they downsize the payroll. If they’re not going to spend as much money on free agents, young players are a necessity to maintain some level of competitiveness. But they don’t have them to use for themselves to to trade for someone else’s more established star. The logical next step after this meeting is to start replacing some of his staff.

This recent hot streak aside, the overwhelming likelihood is that the Yankees will miss the playoffs in 2013. There will be the complaints that injuries were the main reason, but teams with $200 million payrolls really don’t have much of a leg to stand on when coming up with excuses. After the season is over, there will be a lament that “if the season had gone on a week longer” then the rest of baseball would’ve been in trouble; or that the way Rivera goes out with a declining, also-ran team is not befitting his greatness; and that the post-season “loses its luster” without the Yankees.

These are diversions and attempts to make the Yankees more important than they actually are.

No one, least of all Hal Steinbrenner, wants to hear it. He’s the boss now and he’s been patient. He’s justified in looking at the Yankees’ annual payrolls and wondering why, with a roster full of the highest salaried players in baseball for as long as anyone can remember, they’ve been rewarded with one championship since 2000. Why, with the money at their disposal and an ownership willing to green light just about anything to make the organization better, they haven’t been able to find young talent and nurture it to success. Why the Rays, Athletics and Cardinals among others have been able to win and develop simultaneously while spending a minuscule fraction of what the Yankees have spent. And why his GM so openly criticized the acquisition of Alfonso Soriano when Soriano has turned into a bolt from the sky in his return to pinstripes.

What this will do is embolden Hal, Levine and the rest of the Steinbrenners to believe that perhaps the implication of “baseball people” knowing more than anyone else might be a little overplayed.

This meeting is a precursor to a change in the structure of the baseball operations and with Cashman’s repeated public embarrassments, inability to hold his tongue and abject errors, he’s on the firing line. The Steinbrenners have been agreeable, loyal and tolerant to Cashman’s demands and decisions. With the details of this meeting strategically leaked, it looks like they’re greasing the skids to make a change. George Steinbrenner was more emotional than calculating and his meeting would have been eye-rolled and head shaken away as the ranting of a lunatic, quickly dismissed. Hal Steinbrenner isn’t like his father, but the result might be the same when the season ends and he’s not going to change his mind five minutes later.

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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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