Sherman: Yankees have $8-$10 million to spend on 2014 payroll

I came across this in Joel Sherman of the NY Post‘s column this morning. It’s nothing official it’s more of an educated guess on Sherman’s part, but he explained that the Yankees likely have a budget of about $8-$10 million that they are willing to spend on the 2014 payroll this offseason in the form of multi-year deals.

This, as Sherman suggest, is probably the reason the Yankees didn’t re-sign Russell Martin this offseason. Rather than spend all of their budgeted allowance for next season on one player they seem to have decided to spend it on multiple players.

A couple of players they spend it on now are Jeff Keppinger and Scott Hairston. It won’t take a lot to sign either player, but both are looking for deals in the two-year, $8 million range.

This does make not re-signing Martin make a little more sense. Before it seemed that the Yankees just didn’t like the guy as they only offered him a two-year, $14 million deal. That actually represents a paycut on his average annual value which was a bit surprising after Brian Cashman called him Thurman Munson like a year ago. But Cash’s hands were probably tied – does he go into the season with Martin, who is coming off a rough offensive season, for multiple years or does he potentially fill two other positions?

The Yankees already have four players signed to $88.775 million worth of contracts and that doesn’t count another $22-$25 million to Robinson Cano. If the Yankees are going to stay under a $189 million payroll next year it’s actually a $178 million after benefits are paid out. So they are already starting with just about $64 million to spend on 20 players.

This should shed a little light as to why they are so resistant to hand out multi-year deals because $64 million doesn’t spread out among 20 players well. Let’s just say, Andy Pettitte and Hiroki Kuroda come back in 2014 – then right off the bat they only have $44 million to spend on 18 players. Another $13-$15 million on re-signing Curtis Granderson and they’re down to about $30 million on 17 players and they haven’t even signed a closer yet.

Even if they don’t sign Kuroda or Pettitte or Mariano Rivera and Granderson — they have to sign somebody to play their positions and they’re not going to be able to find players on the open market that will be able to perform at a┬ácomparable level for much less money.

This is why the Alex Rodriguez contract is such a disaster. This is why Mark Teixeira‘s steep decline has put such a hurting on this organization. The Yankees might have won the 2009 World Series with them, but it is coming at a steep cost. They basically can’t give out multi-year deals and the 2013 team is going to hurt as a result and the 2014 team might not even come close to making the playoffs in a tough AL Eastern division.

It seems like if the Yankees are going to be willing to make an exception to their no multi-year deals situation it’s only going to be as much as $8-$10 million. They just don’t have the flexibility to add any more.

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7 Responses to Sherman: Yankees have $8-$10 million to spend on 2014 payroll

  1. clay says:

    If this is true, Suzuki is gone.

  2. Captfrank says:

    As a result of the yankees management being a bunch of greedy billionares i and many other yankee fans will mot by a shirt,tickets to games,pay xtra to watch games on tv at this point these guys crying poverty is a joke and shoold sell team to somebody who will support players ans fans

    • Mark Panuthos says:

      I think you fundamentally misunderstand Rob's article.

      They're not "crying poor mouth", they're admitting they made some egregious contract errors and its coming back to hurt them. They may suck next year, but they will still be the Yankees, they'll still have the most championships in the history of North American sports, and the greatest legacy of any team probably in world history.

      Go ahead – like the Mets. I think the Yankees will be ok. You can come back when they start winning again.

  3. Hardcore Yankee Fan says:

    I think you are painting a slightly more dire picture of things that reality. While I agree that 2014 will be somewhat difficult to plan around, your article talks a lot about things that don't necessarily have to happen. I don't think Pettitte or Kuroda will be back and if so, I think it will be Pettitte with the understanding that the dollars have to be reasonable and if he has a desire and talent to play, I think he will be somewhat flexible.

    You could sign Hamilton today for $125M/5 and that would only be a $10M increase in the outfield, trade Granderson (or let him go), and have Gardner and Heathcott or another prospect man the outfield. Then you could let Cano (an his supposed $23-25M) go, or trade him midseason, and commit yourself to Adams.

    These are just a couple of possibilities. I don't think we have to think in terms of repeating the current roster until they are all retired. I doubt Cashman is thinking that way, at least I hope not. I understand all of the reasons why we are signing the players we are for 2013 thus far and I've agreed with all of them. I also think that not signing Chavez and/or Ichiro is not necessarily a bad thing.

  4. Paul says:

    With the self imposed payroll containment the Yankees are operating under, why not solve right field by signing Ichiro, probably would sign for $6-$8 million on a 1 year contract leaving some money available for 3rd base and catcher. Ichiro is not a home run guy and also not a big strike out guy, but he does provide speed, defense, a great arm and did not disappear in the post season like the rest of the team ! He is also very durable having played 160+ games in each of the last 3 years. May not hit .322 as he did in his time with the Yankees last year, but a solid .280 BA would not be such a bad alternative given the situation the Yankees are in.

  5. ROERT MANHESTER says:

    sell the team