Yankees reportedly reluctant to move past Tier 4 luxury tax

Yankees reportedly reluctant to move past Tier 4 luxury tax

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The Yankees had an aggressive offseason, Aaron Judge Signed a record-breaking free-agent deal while bringing Carlos Rodon on a 6 year contract. In addition to these additions, Anthony Rizzoaccomplished most of the club’s heavy lifting.

It also positioned the organization to top last year’s franchise-record spending levels. slightly higher. The club’s luxury tax figures match his $293 million line, which marks the highest tier of CBT penalties. Roster Resources currently projects the organization at $292.3 million.

The latter number seems particularly important for organizations. The New York Post’s Jon Heyman reports that the Yankees don’t want him to cross the $293 million threshold. Given where their salaries stand, sticking to that goal would rule out other notable additions unless the club finds a way to drop some money.

Yankee roster looks strong, Rodon takes over Jameson Tyrone In a rotation of teams that have won 99 games in the regular season and advanced to the AL Championship Series.Left field seems to be their biggest question mark, as last summer’s Deadline acquisition Andrew Benintendi He signed a five-year free agent contract with the White Sox.Yankees now have veterans Aaron Hicks and youth Oswald Cabrera As a top left field option. Hicks has had below-average offense numbers in his last two seasons. Cabrera has had his rookie streak, but his MLB experience is limited to his 44 games.

Heyman repeats Yankees’ previous reported interest in free-agent left fielder Jurickson Profer However, in light of the club’s payroll stance, it casts doubt on the feasibility of actually landing him. Josh Harrison Perhaps also interesting as a depth infield target that can factor in the left field mix, but even with Harrison’s low base salary, it’s likely he’ll top the $293 million CBT mark.

A fourth tax level was recently introduced in collective bargaining. Setting him $60 million higher than the base numbers for the season (he’s $233 million this year) means every dollar past stage four is taxed at least 80%. Teams like the Yankees, where he has paid the luxury tax two years in a row, will tax him at the 90% rate on additional spending.

One could argue whether it was wise for the Yankees to treat the $293 million figure as a hard cutoff. As it stands, the club will pay about $29 million in CBT fees for him. They’re set to see the top selection drop him 10 spots above his $273 million mark in the 2024 draft. There is no additional draft penalty for crossing the 4th threshold, but the financial disincentive is even higher. The Yankees certainly aren’t frugal this winter, and overall he’s guaranteed more than $570 million, pushing him to second place in 2023 spending. The crosstown Mets have proven not to be totally deterred by the final tax rate, with CBT salaries over his $360 million, the highest in the league.

The Club Competitiveness Balance tax amount will not be calculated until the end of the season. The Yankees could see him above $293 million during the offseason, but then fall below that threshold by the end of the year. Alternatively, you can stay under the marker for now, but reconsider going over the summer trading deadline if it is competing as expected.

If that threshold really is borderline in the sand, the deal will be a major vehicle for making additional breathing room. New York to reallocate part of $25 million CBT hit would welcome the opportunity. Josh Donaldson $10MM number of deals or Hicks contracts but they seem to have little interest around the league. graver torres Also Isaiah Kiner Falefa If New York wanted to make them available they would attract more interest, but doing so would obviously take a toll on the depth of their infield. Frankie Montas Earning $7.5 million, he could have been a potential trade target after the club added Rodon. That will be difficult to do now that Montas is several months behind schedule due to ongoing shoulder trouble.

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