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.
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 comparable 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.