Jeter deal could be done today

Red Sox on the verge of acquiring Adrian Gonzalez
Report: Jeter, Yanks agree to new deal

Update (11:23am): Jack Curry hears that both Jeter and Mariano Rivera have agreed to defer money to move the process along. That’s huge as far as the 2011 payroll is concerned.

Based on the zillions of reports floating around, the Yankees and Derek Jeter could have a new deal finalized sometime today. Ken Rosenthal says it’ll be a three-year pact worth $15-17M annually, and that the fourth year will not be guaranteed nor will it be able to vest. A source called it “creative, hybrid” solution. I wonder how that’s going to work.

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Red Sox on the verge of acquiring Adrian Gonzalez
Report: Jeter, Yanks agree to new deal
  • http://theyankeeu.com Matt Imbrogno

    Woo.

  • PaulF

    15-17 million a year is a pretty big difference, but both are a lot better than the 19 that we heard last night.

    • FIPster Doofus

      Agreed. Fifteen to 17 is a lot more palatable than 19.

      With this saga finally over, it’s time for the Yankees to move on to more important matters – i.e., Cliff Lee.

    • Hughesus Christo

      So they’re giving a BS 4th year to launder luxury tax money. Let’s see how long it takes MLB to reject this contract.

      • http://theyankeeu.com Matt Imbrogno

        Are you ever happy with anything?

        • http://twitter.com/JoeRo23 The Honorable Congressman Mondesi

          I love that we don’t even know what the 4th year solution is yet, but it’s already ‘BS to launder tax money that will get rejected by MLB.’ Level-headed, prudent.

          • http://soxandpinstripes.net Angelo

            Haha, well said

          • http://twitter.com/tsjc68 tommiesmithjohncarlos a/k/a Ridiculous Upside the Elder

            I’m sure the 4th year solution that Hughesus Christo already hates came directly from a page in Girardi’s accursed binder.

            • Hughesus Christo

              Binder jokes are below me.

          • http://twitter.com/JoeRo23 The Honorable Congressman Mondesi

            By the way, as a PS, I think we need a massive and disciplined O:S operation on this guy. These conversations with this person are dragging down the level of discourse.

            • Hughesus Christo

              Perhaps the congressman would prefer a censure?

      • steve (different one)

        Has MLB ever “rejected a contract”? You are so negative you are inventing negative outcomes that have no chance of happening just to avoid giving any credit to anyone. It’s insane. And I have to admit, I’m impressed.

        • Hughesus Christo

          MLB rejected ARod’s first contract with the Red Sox, which is why he’s here now…

          • http://twitter.com/biebrichbeats ClayBuchholzLovesLaptops

            Wrong. MLBPA rejected it.

          • http://twitter.com/tsjc68 tommiesmithjohncarlos a/k/a Ridiculous Upside the Elder

            MLB didn’t reject that contract, the player’s union did, and ARod stood with his union.

          • Pat D

            Not trying to really nitpick, but wasn’t it the Player’s Association that objected to a possible reduction of the money that ARod was yet to be paid and so it never even got to a negotiation stage?

          • steve (different one)

            This couldn’t be more wrong. The PLAYERS UNION refused to let A-Rod reduce the total value of the contract HE ALREADY HAD. Has nothing to do with it. At all.

            And since you brought up A-Rod, MLB made an exception for the marketing bonuses on his last contract. Just like they made an exception on Schilling’s WS bonus. Just like they will make an exception for Derek Jeter if necessary.

            As usual, you have no idea what you’re talking about.

            • Hughesus Christo

              Were those marketing bonuses specifically allowed for ARod, or are these rules that weren’t in place until created in reaction to ARod’s deal?

              Two, MLB rejects language in contracts all the time. For example: http://www.bizofbaseball.com/i.....;Itemid=39

              Three, take a cold shower

      • Plank

        Can you explain how an option year can avoid luxury tax money? Or did you mean something else by launder?

        Not snarky, genuinely curious.

        • Hughesus Christo

          As I understand it, they would be adding a 4th year option that will be bought out at a level bringing the overall value of the contract to 18.9+ per season “over 3 years”

          So if Jeter re-signs again for less than 13 million or whatever things end up being (a number below the AAV f this first 3 years), the Yankees save money by not having had those dollars taxed at in years 1-3.

          • Plank

            That’s not how the luxury tax works.

            • Hughesus Christo

              Money over X dollars is taxed at Y percentage

              The proposal is to decrease X in 2011-2013 by pushing the money to 2014 with a false option. If the value of Jeter’s total 2014 cost is below what he would have cost with the “option” applied at some point in 2011-2013, they have circumvented the luxury tax.

              Yes, that is how the luxury tax works.

              • Plank

                But the option will either be:

                1. exercised in which case the luxury money will be paid 2014 on his salary.

                2. not excercised, with a buyout in which case the buyout will apply to 2013.

                3. not excercised, no buyout in which case, it’s just a 3 year contract

                In all 3 possible outcomes, all money gets taxed. What is a “false option”?

                • Hughesus Christo

                  I assumed the buyout applies to 2014.

                  • Plank

                    Fair enough, but even if the buyout applied to 2014, and the Yankees paid the tax on the buyout in 2014, how would they be doing anything deceitful?

                    • Hughesus Christo

                      Does it fly to assume they will be paying the same luxury tax in 2014 that they’re paying in 2011?

                    • Plank

                      To Christo:

                      2014 is under the next CBA, but so are 2012 and 2013. No one knows if the new luxury tax rules will be harsher or milder toward the Yankees. Either way, it wouldn’t make much sense to weight a multi-year contract under one CBA or another.

              • steve (different one)

                But the luxury tax is based on AAV. So, this contract would have the same AAV no matter how the money is spread.

                In other words, you are wrong. Again.

                • Hughesus Christo

                  How are buyouts treated?

                  • http://www.riveraveblues.com Mike Axisa

                    The luxury tax is calculated using guaranteed money and guaranteed years only. Options have no impact until they’re exercised or vest. Buyouts are guaranteed money, so they count.

                    If Jeter signed for (hypothetically) $15M a year for three years with a $15M option for a fourth year or a $5M buyout, the luxury tax is based on the $50M ($15M x 3 + $5M buyout) across the three years, or $16.6M per year.

                    • Plank

                      Signing bonuses are the only part of a contract that get’s spread out over all the guaranteed years of a contract for luxury tax purposes.

                      In the scenario you give, if the 4th year option gets exercised for $15M but they already paid luxury tax on $5M, do they only pay tax on $10M in the 4th year?

                      Buyouts get added onto the last year (2013) if the option isn’t exercised.

          • steve (different one)

            So, 3 years with an option that comes with an expensive buyout? Explain to my MLB would reject this contract when there are hundred of others exactly like it?

            Maybe I am missing something. If so, please explain. You seem to be thinking of this like that deal the NJ devils tried to pass through. Perhaps, but I’d be shocked if this were the case.

            • Hughesus Christo

              I don’t remember the use of a buyout being discussed this way before the contract is signed. Publicly, at least. I also don’t think bought-out players end up back with their teams very often.

              • Chris

                They do sometimes – like Mussina with the Yankees.

      • MikeD

        Go root for the Mets. They have plenty of fans like you.

    • Poopy Pants

      Agreed! Also much better than 25!

  • http://fmylife.com Bryan L

    Good to get this done before Winter Meetings. Big ups’ to Cashman.

  • Granderslam

    Good! Mo, check. Jeter, almost check. Now, let’s focus on Lee, Pettitte, and maybe some surprising stealth moves by Cash. Supposedly, Bell is now definitely available too.

  • BigLou

    As Yogi says it ain’t over till the fat lady sings!

    • http://www.onedayonejob.com/ Willy

      … or the shortstop signs.

  • http://twitter.com/tsjc68 tommiesmithjohncarlos a/k/a Ridiculous Upside the Elder

    The fourth year will not be guaranteed nor will it be able to vest. A source called it “creative, hybrid” solution. I wonder how that’s going to work.

    Jeter only gets the 4th year if he hits .400/.500/.600 in the third year of the deal, breaks Pete Rose’s all time hits record, wins a Gold Glove and a Silver Slugger at both shortstop and relief pitcher, and runs back 4 punts or kickoffs for touchdowns for the Jets or Giants in 2013.

    He also must create a workable cold fusion machine and cure AIDS, while balancing the budget and eradicating world poverty.

    Failing all that, the option turns into a perpetually renewing player option for a 1yr/$400,000 non-roster Spring Training invitation with an extra 100k if he makes the roster. The contract comes with a stipulation that he may be DFA’d at any time and must accept the assignment to Scranton.

    • Hughesus Christo

      See, that would still be a vesting option.

      • http://twitter.com/tsjc68 tommiesmithjohncarlos a/k/a Ridiculous Upside the Elder

        I’d call it more of a “besting” option.

    • Chris

      Failing all that,

      No way Jeter fails to meet all of those requirements. That deal is practically guaranteed.

  • http://pda.88000.org/wallpapers/48/Pikachu_Dressed_as_Hitler.jpg Do Not Feed The Trolls!

    I am strongly against giving Jeter anything more than 2 years but anyone else feel that he will have a very good 2011?

    • YankeesJunkie

      Well considering he had a 2.5 fWAR in 2010 is not like he was worthless. However, if he bounces back even a bit Jeter is a 3 or 3.5 fWAR player and will contribute to the team.

  • JDDZip

    Is anyone worried about the Sox getting A-Gon without giving away any major league players?

    • YankeesJunkie

      No, but I would have expected at least 4 or 5 prospects if that were the case.

    • http://twitter.com/tsjc68 tommiesmithjohncarlos a/k/a Ridiculous Upside the Elder
    • jon

      not really they are giving up 3 of their top 10 prospects for a guy they were going to sign in the offseason next year

      agon is a very good player but he will not has the same season as beltre did last year

      in a bubble they red sox will not be better just because of this trade, vmart + beltre > salt + agon

  • All Star Carl

    We need a Yankee payroll post like the one last year.

  • aznsensation

    Can someone explain what deferred money is?

    • All Star Carl

      When the Yankees go “Shhhh” and slip money under the table.

    • steve (different one)

      It’s just money the team would pay out in the future, usually with some interest. It’s fairly common for big contracts. If you look, the Mets are paying Bonilla something like $1M/year for the next 20 years because they deferred like $8M in 1992 (I’m sure this isn’t exact). The rangers owe Arod deferred money. The Yankees did it with Clemens.

      • Accent Shallow

        The Yankees did it with Clemens.

        I was not aware that the Yankees had done this in the past, and was a bit worried. Good to know.

      • steve (different one)

        The mets also did it with Johan. It also happens occassionally when a player allows his team to restructure an existing contract to help them out. As long as it’s deferred with interest, and the same total dollars exist, the union will allow it. Chipper jones and andruw jone with the dodgers are 2 recent examples. The difference with arod and boston was that boston wanted to REDUCE the total dollars owed.

  • MikeD

    It’s being reported at $16 million a year.

    • YankeesJunkie

      Well it seems that Jeter drank the reality potion then.

    • TNeloms

      Link?

      • MikeD

        MLB Network, and it’s from Heyman, so take the news from where it comes.

        I do wonder if the deal is “only” for $16 million annual average, and if Jeter has agreed to defer some money, I’m wondering if that increases the liklihood the fourth year is locked.

  • jeremy

    so does mo and jeter getting “deferred money” mean that not only they will be able to get lee but also to make a run at crawford too? i’m thinking if boston ends up finalizing the a-gon deal AND still goes after werth then the yankees try to “even it up” by getting crawford.
    i’m expecting this type of cenario:
    yankees get Cliff Lee AND werth/crawford

    IF
    red sox get adrian gonzalez AND werth/crawford

    • JDDZip

      I was just thinking this. I would’t mind having Crawford in our lineup, but honestly that means we have to grade Granderson I assume.

      If we trade Swisher it’s Crawford in LF, Grandy in CF, Gardner in RF?

      and part of me feels like Grandy’s going to have a career year next year

      • MikeD

        The advantage the Yankees have here is both Gardner and Granderson are CFers. They could move any three of their OFers and still have a good defensive CFer, so that would give them a lot of flexibility to work out the best deal if they actually did sign Crawford, which I still think is unlikely.

        Who has the stronger arm? Granderson or Gardner? As good a CFer as Granderson is, Gardner has even more range, so I’d be more open to putting Gardy in center and Granderson in right if they’re arms are equal, and I suspect Granderson’s might be slightly stronger.

    • http://www.yfsf.org AndrewYF

      The Red Sox are the ones trying to ‘even it up’. Even if they get Gonzalez, they still haven’t quite done so.

      If the Yankees get Lee, I don’t think there’s much Boston can do to even things up, unless they trade their mascot for Justin Upton, and buy the Marlins and take Josh Johnson.

    • http://twitter.com/tsjc68 tommiesmithjohncarlos a/k/a Ridiculous Upside the Elder

      Getting Gonzalez is a big boost to their offense. Much needed.

      That being said, I’ll start worrying about the Sox overtaking us when 3/5ths of their rotation stops being “Beckett-Lackey-Matsuzaka”.

      Even if they sign Gonzalez and Crawford (or Werth), even if they go nuts and sign Rafael Soriano and non-tender Papsmear, the Sox are still a clear second to the 2011 Yankees with CC/Lee/Hughes at the front of the rotation.

      • Chris

        Getting Gonzalez is a big boost to their offense.

        Losing Beltre and Martinez are two big minuses, so just to stay steady from last season they’d still need to sign Werth or Crawford.

        • http://twitter.com/tsjc68 tommiesmithjohncarlos a/k/a Ridiculous Upside the Elder

          Very true.

  • Granderslam

    Is it weird that I’m still holding out hope for Upton? I know it’s not a necessity and no, it is not an overreaction to the Gonzalez deal, I just keep imagining Upton in Pinstripes for whatever reason. I would prefer him to Crawford obviously…just dreaming out loud. Now that Jeter is almost done, it’s off to the next unrealistic obsession I guess.

  • http://www.or.ly JM

    I am just as baffled at this contract as I was with the original 3/45. How DARE the Yankees front office treat their beloved captain this way while A-Rod makes $30M a year! Jeter deserves EVERY penny for what he’s done for this franchise. Just give him what he wants! If he wants $25M/yr then GIVE IT TO HIM! The Yankees front-office has to get their priorities straight: They AND the fans need their captain!
    /sarcasm
    /now Big Bertha can’t say it

  • steve

    i bet they do a 4th year team option with a buyout that is adjusted based on plate appearances on the 3rd year. 550pa = 12 million buyout, 450 = 10 million, 350 = 8 million, <250 = 6 million. or something like that. could they do that?

  • http://www.yahoo.com miked

    this is gonna be a steal because i remember a few years ago they thought jeter was on the decline then the next year he shoulda won the mvp but came very close and he’s the best clutch player in the game