Reds sign Andrew Brackman

Love Me Non-Tender
Saving money on Sabathia's extension

It seemed curious when, in early November, the Yankees declined their $2 million option on Andrew Brackman. That doesn’t seem too unreasonable for a former No. 1 pick, especially one who has, at times, shown promise. The reasons for the Yankees cutting bait weren’t immediately clear, so the possibility remained that he’d re-sign with the team on a minor league deal. That is no longer an option. According to Jon Heyman, the Reds have signed Brackman to a one-year deal at the major league minimum. He grew up in Cincinnati, so I’m sure that factored into his decision. While the Yankees optioned him three times — 2009, 2010, and 2011 — the Reds can apply for a fourth option since he used up his three original options within his first five pro seasons. Brackman was always a pipe dream of a prospect for the Yanks. Here’s hoping him the best in Cincy.

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Love Me Non-Tender
Saving money on Sabathia's extension
  • http://www.bronxbombersreport.com Craig Maduro

    I think this was a meggle on the Yankees’ part. They know more than I do, but I don’t think it would have hurt to give him one more shot.

    • Gonzo

      What’s meggle mean? I looked it up and didn’t find anything. Is this something the kids are using nowadays?

      Totally serious.

      • http://www.bronxbombersreport.com Craig Maduro

        Meggle = a mistake or a bad decision.

        • Gonzo

          Nice. I like it.

    • Paul from Boston

      It would have hurt by $2M. No, there are better ways to spend that cash. He showed nothing last year. He completely regressed. Even if he comes back to be a decent middle reliever, he’s still not worth $2M. And the Yankees couldn’t justify giving him a starting spot in Scranton when they have more than 5 guys who deserve it more.

      • http://www.bronxbombersreport.com Craig Maduro

        Maybe you end up being right, but damn, they stuck with him that long and right when he’s scratching at the door they let him go. Two mil is probably too much for someone who hasn’t produced, but would it have cost them $2 mil? I don’t think they necessarily had to pick up the option, but I thought it was worth bringing him back on a one-year deal.

        I’m sure there are several factors that I’m overlooking, but I liked Brackman’s stuff during his sip of coffee and I can’t help but feel like the Yankees gave up on him a bit prematurely.

  • Gonzo

    Good for him. I guess he’ll be used as a RP, but you never know. He could be one of those guys that just figures it out later than normal.

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

    Just so everyone’s clear, this is the time of year when you complain about how much money the Yankees wasted on a prospect. Then come June and July, we’re supposed to complain they aren’t spending enough.

    • Gonzo

      What a sweatheart deal Brackman got from the Yankees. A $2 million option for this year? That’s gotta be one of the best deals ever given to a draft pick, right?

      • Paul from Boston

        It was a dumb deal. They saw the size and athleticism and projected Randy Johnson. That said, spend the money.

        • Gonzo

          I just read that he has made more money than David Price to date! David Price was a 1/1 pick the same year Brack was picked.

          Holey moley.

          • Gonzo

            Oh shoot, Mike wrote that article last month for Fangraphs. Way to go Mike.

          • Steve (different one)

            Yes, but I don’t think those numbers ($13m) that were tossed around when he was released were at all accurate. I’d guess he got about half of that.

            • Gonzo

              I guess you’re right. Estimates vary from $5mm to $6mm to $8mm to $11mm.

        • Steve (different one)

          The money was ok, because they could spread it as a two sport guy, it was the major league contract. Of course, it’s a double edge sword, because by many accounts, his demands are part of the reason he was still available when the Yankees picked.

    • Paul from Boston

      Well, it was a smart call to not pick up his option. He showed nothing worth having. If that changes then they still made the right call.

      Now is the time where they better damn well spending the money on Darvish. They have cash in truckloads. If the Dodgers can get $300M/year for TV rights, and not win a damn thing, YES should be paying the Yankees, what, $500M a year? That’s on top of $250M in gate receipts. I don’t care how high their expense and loans are. They’re clearing hundreds of millions a year, if the accounting were on the up and up.

      No, I’ll always complain the Yankees aren’t spending enough, because they aren’t.

      • Ted Nelson

        Why make things up?

        “I don’t care how high their expense and loans are. They’re clearing hundreds of millions a year”

        This is a financial contradiction…

        • Paul from Boston

          It is? You really think they’re spending >$100M/year on expenses? You really think they’re spending >$100M/year on loans and bonds for the new stadium?

          Even if we assume that YES is paying the team $300M/year for broadcast rights, they’re easily clearing $600M/year in revenues. Salaries are $220M. That’s a lot of spare cheddah floating around.

          • Ted Nelson

            You are making things up. Stop.

            How much I think the Yankees are spending on various things has absolutely nothing to do with how much they are spending.

            • Paul from Boston

              Making up what? Their ticket revenues? That’s easily calculated. Their TV revenue? That’s easy to find the best going rate.

              Fact is, you should shut your piehole if you can’t offer any better retort. Calculating spending on a baseball team isn’t difficult. There are salaries and overhead.

              • Need Pitching

                some actual info from 2010 if anyone is interested

                http://www.forbes.com/lists/20.....34613.html

                • Paul from Boston

                  And there you go:
                  The baseball team generated $325 million in revenue from regular-season tickets and luxury suites in 2010. The YES Network, the team’s 34%-owned regional sports channel, is the most profitable RSN in the country and had over $400 million in revenue last year. The Yankees own a stake in Legends Hospitality Management, which manages stadiums, and generates $25 million in operating income. The enterprise value for the Yankees, YES and Legends is $5.1 billion. Although highly leveraged with $1.6 billion in debt (including Yankee Stadium’s PILOT bonds), the team’s enormous cash flow has easily covered the $64 million in stadium debt service payments.

              • Ted Nelson

                Making up the expenses. Profit is revenue – expenses. You cannot possibly know profit without knowing the expenses. You are making up what you think might be the expenses.

                There’s no need for personal attacks.

                Overhead is pretty tough to calculate when you have to provide electricity and heat, clean, and service the stadium and all other property the organization owns.

                Do I think they make a profit? Sure. Do I know how much? No.

                • Paul from Boston

                  See above. I have no trouble believing Forbes.

                  • Ted Nelson

                    What are you talking about?

                    Forbes does not list the profits in what you quote above…

                    You seem to have a very poor understanding of finance.

          • JF

            Taxes? Probably close to 30% of revenue… Just sayin…

            • Gonzo

              Hey if GE can have a 0% tax rate, why not the Yankees? Both American icons! LOL

              • Paul from Boston

                Given that bonds are often offered as a tax shelter, I wouldn’t be surprised. They’re not paying taxes on the Stadium land, are they?

            • Ed

              Taxes aren’t anywhere near that. Business are taxed on profits, not revenue.

          • Ed

            First, here’s a story from February about the luxury tax and revenue sharing. The Yankees are paying over $130M a year to the two funds combined. source

            Second, they’re almost certainly paying over $100M/year toward the new stadium. They spent over a billion dollars building it. Even with the low interest rate bonds to fund it, I’d expect them to be in the ballpark of $100M annually. Think of it like a mortgage – even with a good rate, you’re paying far more in interest than in principal.

            That’s $230M right there at least. Tack on another $220M for major league payroll. You still need to pay management and investment partners, run and maintain the stadium, run the minor leagues, handle scouting domestically and internationally, amateur signing bonuses, and probably plenty more expenses we’re missing.

            • Paul from Boston

              They’re not paying $100M a year toward a $1B mortgage. It doesn’t work that way.

              And your point is what, exactly? That they’re losing money? Puh-leeze.

              My point stands: If the Dodgers are clearing $300M/year in TV revenues, the Yankees are doing much, much better running their own network. You’re also forgetting concessions (which they run as their own business) and advertising and merchandise, etc. The minor league teams are independently run. Scouting is a rounding error on AJ’s contract. Goldman Sachs gets theirs.

              • Paul from Boston

                Let’s also not forget about their radio deal: $15M a year and scheduled to increase significantly.

              • candyforstalin

                that dodgers number is incorrect.

              • Need Pitching

                Yankees only own 34% of YES, they don’t get all the money
                Here’s an article saying the Yankees get 60-67M directly from YES for rights fees (not sure from article, but it was either 2009 or 2010 – either way, obviously less than what fair market value would be) and then they seperately are entitled to their share of the YES profits
                By the Forbes link I posted above, their operating income was about $25M for 2010 (not counting YES profits). They are making great money, but not hundreds of millions in profits
                and they pay about $92M/year according to the article in stadium rent and maintenance combined
                http://itsaboutthemoney.net/ar.....99-budget/

                • Ted Nelson

                  Thanks for some clarification

              • Ed

                You’re right, $100M on $1B is high. I ran some estimates using typical mortgage numbers but forgot to remove escrow. Take that out and you fall in line with the $64M figure that was later tossed around here.

                My point is that your estimates of their expenses aren’t even in the right ballpark. You suggested it was absurd to think they were spending $100M a year in expenses outside of the ML payroll. They’re hitting $200M just covering debt and payments to the rest of MLB. They still have a ton of expenses on top of that.

            • Paul from Boston

              $64M/year for the stadium, per the Forbes piece above.

          • candyforstalin

            they’re making 25m/per. plus 100m increase in franchise value. yes money is about 200m/per.

  • pat

    Should of taken David Price. Yankees r the suxzors of drafting.

    • Preston

      Yes I wish we’d had the number one pick in the draft to take David Price?

  • Steve (different one)

    As I said in the previous thread, just replace him in your mind with Adam Miller. I have and am totally content.

    • MannyGeee

      and oh yeah, Brackman signed a MAJOR LEAGUE contract. Miller is signed to an MiL deal, right?

  • http://www.yankeeanalysts.com Eric

    I can’t wait until Brackman has some modicum of success in Cincy and people blame Cashman for letting him go after ripping on him for drafting Brackman. That will be fun.

    Brackman clearly needed a change of scene, and hopefully he’ll feel more comfortable near home (he’s from Cincinnati). There seemed to be some psychological as well as physical issues with Brackman, but I think in the right environment he could get himself straightened out.

    • Paul from Boston

      A change of scene ain’t doing much to help his 7 BB/9.

  • thenamestsam

    I know he had a horrible year, but I’m pretty surprised they let him go over a couple of million dollars. This is a guy who they considered briefly for a rotation spot last spring, and now they think he’s essentially worthless? Seems penny wise, but pound foolish.

    • Paul from Boston

      Where do you put him in 2012? That answers your question right there. He should get a AAA roatation slot over Banuelos, Betances, Phelps, Mitchell, and Warren? If not, then they should have paid $2M for a AAA reliever?

      Sorry, but his time was up. Perhaps if they had room in AAA it would have been different, but they gave him every chance in the world. If anything, he should have taken a mL deal from the Yankees to pitch in Trenton all year long.

  • Preston

    Normally I root for all ex Yankees to do well when they aren’t playing us, unless they were dicks. I was even happy for Ace last year, although I’d have been less happy if the Sox hadn’t missed the playoffs. But if Brackman ever has success at the big league level I’m going to be really pissed.

    • MannyGeee

      you ever heard the expression ‘Throwing good money after bad’? That was Brackmans story. how much more are you going to pay for a guy who has had limited success in AAA and none in the bigs?

      I predict Brackman gets his feet wet in the Cincy system and becomes a fringe major league pitcher whos stuff never lived up to his expectations, like an AJ Burnett lite.

      heres to Brack, wishing him success against everyone but the Yankees.

      • Preston

        I’m not saying they made the wrong move. More important than the money I think was the 40 man roster spot he’s been wasting. It’s just after all the money and patience we’ve shown it would suck if he caught on elsewhere.

  • Platano Man

    The Yankees did the right thing with this thief. They paid for his TJ and on top of that gave him a top pick contract. We need to stop criticizing the Yankees for doing what they believe is best for the team. Those 2 mil can be used in other areas and not on a clown that didn’t pitch better than my 102 years old grandfather( Sorry abuelo for offending you). They can give those 2 millions to Rich Harden or even Andrew Jones.

  • Chris

    The Yankees meggled in signing Kei Igawa. New favorite word.

    • Burn Baby Burn

      You being born was a meggle

      • Steve (different one)

        Are you said he was Meggle-born?

        /nerd alert!!

        • http://www.bronxbombersreport.com Craig Maduro

          Meggle borns what happen when mom & pop don’t take proper precautions. i.e. most of the boys and girls on 16 & Pregnant.

          I do like the HP direction you were heading in though.

        • Chen Meng Wang

          Stupid Mudbloods, I thought this was a pureblood only site.

          /a step too far?

      • Chris

        oh snap!

  • CS Yankee

    The right move was to take a chance on him & to let him go for nothing.

    If he lived/progressed up to his projections, it would of been great. These signings (Joba as well) are high risk-high reward. The exact risk a filthy rich (or extremly poor) franchise should take; like winning the Lotto.

    Letting him go was a no brainer as they have 5-6 AAA guys that are developing better and he would of costs 5-times their MLB wage, not to mention the 40-man spot.

    Great chance, time to play again in SuperBall & try and get Yu.

  • http://www.bronxbombersreport.com Craig Maduro

    I’m a little disappointed by this, but maybe there is a slight silver lining:

    On a one year deal for league minimum, Brackman will be back on the market if the Reds don’t extend him mid-season or sign him during the exclusive period. The Yankees will have a chance to evaluate him further (albeit from afar) this season without paying him or committing a roster spot to him. Under the unlikely circumstance that Brackman does show something in 2012 the Yankees could come calling again next offseason.

    I’m putting my hamstring at risk with that stretch, but I just find it to be an interesting hypothetical scenario in which the Reds would essentially be serving as an extension of the Yankees’ farm system.

    • Need Pitching

      Unless I’m missing something, Brackman will be fully under the Reds control as a Pre-Arb player after the season, not a free agent, in which case if he shows anything at all they will surely renew his contract.

      • http://www.bronxbombersreport.com Craig Maduro

        Hm. He signed a Major League deal out of the draft. How does that impact the arbitration process?

        • Need Pitching

          not at all, its based on MLB service time
          of which Brackman has slightly over 1 year (mostly because of time spent on the 60-day DL after TJ surgery)