Shocker: Scott Boras doesn’t like the Yankees’ 2014 payroll plan

November 6, 2012 by Mike Axisa 31 Comments

Via Jon Paul Morosi: Scott Boras is not a fan of the Yankees’ plan to get under the $189M luxury tax threshold, and he even went as far as calling the tax a “reward” for clubs generating huge revenue. “Are you going to put your brand at risk, when your brand is having more superstars than anyone else? Superstars are good for business. Superstars make money for franchises and their television networks,” he added.

Of course, superstars also make money for Scott Boras, which is something he neglected to mention. The plan to scale payroll back theoretically takes away a potential suitor for Boras’ clients, which limits his negotiation power and by extension, his earning potential. That’s pretty much the only reason he doesn’t like it, he doesn’t care about the Yankees brand. I don’t like the idea of the team scaling back payroll, not with the New Stadium just opened a lucrative new television deals being signed, but it would be kinda awesome if it was just one big negotiating ploy.

Austin Aunelowitzky

Yeah, This just in…Boras is a Tool.
- RetroRob
  
  A tool because of why?
  - Austin Aunelowitzky
    
    Have you ever heard him comment on any other team’s payroll plans? Have you ever heard the Yankees comment on how Agents should do their job? His like or dislike of the Yankees budget is irrelevant, so who cares about it?
Greg

Really successful tool.
Bo Knows

In other news, the sky is blue, water is wet, and I just saved a ton of money on my car insurance by switching to Geico
- Dave M
  
  Maybe if Hank and Hal switch to Geico too, they’ll forget about the $189mil cap?
Ted Nelson

In terms of Boras’s comment: I believe most studies show that superstars do little to drive revenue if wins are accounted for. Wins drive revenue. A lot of superstars deserve their reputations and help their teams win, of course, but their status doesn’t seem to drive revenue from what I’ve read.
- hogsmog
  
  Some might- think about how every single Wizards home game was sold out when Michael Jordan played for them. I don’t think they were coming for the wins.
  - Steve
    
    Michael Jordan is a once-in-a-lifetime talent. The Yankees will still be in on those players. It’s the Josh Hamilton’s and the Zach Greinke’s that they are staying away from. Difference between an All-Star and a Superstar
    - MannyGeee
      
      “Michael Jordan is a once-in-a-lifetime talent.”
      
      So is Eduardo Nunez. Jus sayin
  - vin
    
    Also, selling out a 20,000 seat arena 41 times for almost exclusively night games in our nation’s capital is a lot easier than asking a team like the Reds to sell 40,000+ seats 81 times a year, with 20% of the games being played during the day.
    - Cris Pengiucci
      
      And one player in basketball can have significantly more impact on the outcome of games than one player in baseball. Granted, an elite pitcher can have a significant impact every 5 games (or so), but in basketball, that impact can be each game, unless the player is injured.
- JLC 776
  
  Superstars sell merchandise… This is great for teams with no real shot of winning or for teams with millions of fans world-wide.
Preston

The Yankees need to have a real budget (not necessarily 189) that people believe and respect. Because that is the only way we can have real leverage in negotiations. Most FA always know they can come to the Yankees and ask for more, more, more. There needs to be a line in the sand that we can convincingly draw to have some kind of bargaining leverage with players.
- Ted Nelson
  
  They can have all the leverage they want by just saying “no.” They can and do just negotiate against the next best offer on the table. While they end up with a lot of overpaid guys by spending so much money, they sign very few guys to deals that were out of line with their market value when signed.
  - Sweet Dick Willie
    
    They can and do just negotiate against the next best offer on the table.
    
    Except when they don’t. Alex, CC, Derek.
Mike

I’m pretty sure ownership will spend on the team and keep us at #1 in payroll.
- Steve (different one)
  
  They’ll be tops in the AL, but the Dodgers are on the crazy train right now.
- Ted Nelson
  
  $189 million will most likely keep them as the highest spending team, or tied. Other teams have the same incentives not to cross that threshold as the Yankees.
  
  I don’t know how these numbers match up with the actual luxury tax number (which includes 40-man guys in the minors, benefits, maybe some other stuff), but the second highest payroll in 2012 was the Phillies at $174 million. Even if there’s $15 million in added expense to the luxury tax number, the Yankees would have been tied for tops in the league in 2012 if they had that budget in place. http://content.usatoday.com/sportsdata/baseball/mlb/salaries/team/
your mom

Fuck Boras! Why is he whining when the Yankees will ultimately sign Cano to $200 million contract? Greedy-ass-Mo-Fo!!!
Randy Levine

Who is this Bore-Ass fellow? I like the cut of his jib. Maybe he can help us obtain some superstars. I think I shall offer him a job as my Special Assistant.
Yankee Fan

The Yankees will be paying $50 million to two of Boras’s clients (A-Rod and Teixeira) in 2013, with nearly $200 million owed to them for the next 4-5 years. With the declining contribution of Boras’s “stars” to the Yankees, I don’t believe the Yankees feel the need to throw their money away right now.
TomH

It is as you say a self-interested and disingenuous comment. However, that doesn’t make it wrong.
vin

Alternate Headline:

Boras showed up for work today, and did his job
ken

how many super stars did the sf giants HAVE?
- Cris Pengiucci
  
  Boras did not say “Superstars win championships for you.” He said “… Superstars are good for business. Superstars make money for franchises and their television networks,”
  
  That may be true to some extent, but I believe winning is more important than a superstar talent in the long run. And, as Ted pointed out earlier, Ttere don’t appear to be too many studies showing that superstars actually bring in enough revenue to offset the salary/win difference of utilizing an inferior player.
- Steve
  
  Buster Posey, Matt Cain, Tim Lincecum (if in name rather than production), Madison Bumgarner
All Praise Be To Mo

Just like in Moneyball, it’s all about production. In NY as long as we win and players produce they become stars. If they don’t, then they will fade from being stars. No reason we can’t build a successful team with a $189 million payroll which will still be among the most in the league. Especially once Tex/A-Rod/CC/Jeter are gone, that will clear up a lot of payroll room.
My only suggestion would be to move away from their stupid approach about not negotiating deals prior to FA, I know they changed it with Cano and that saved them tens of millions. They should do the same early with Williams/Austin/Sanchez/Heathcott if they show they deserve the money. That helps keep payroll down as well.
johnny

I think the point is if they lower their tax it will allow them to better use their financial might for another decade. Personally, I think if they get to 189 in 14 they will spend like drunken sailors in 15 and beyond.
- RetroRob
  
  A valid point, and one lost on many. Resetting to 189M for one season makes the Yankees a lot of money and then they have the ability to go back over 189M again. It’s part of the new landscape. One year of a 189M payroll will provide more money and flexibility in future years.
Shaun

They need to be under $189MM in 2014 and 2015… not only to re-set the luxury tax rate but also to get back tens of millions in revenue sharing dollars. It’s a mandate and will be done. How? Swisher is gone and only one of Cano or Ganderson will be re-signed for 2014. Cano is the first choice but they won’t give him $200MM/10 years. They are likely to go cheap at catcher and outfield as well as do whatever it takes to bring back Kuroda on a one-year deal ($15MM) with the hope that Pineda is at all-star level in 2014 and that either Nova or Phelps progresses. I think A-rod will rebuild value in 2013 if he can stay healthy and they may trade him next off-season. It looks like they will have 3 or 4 supplemental compensatory draft picks next year which will only further help their farm system which should start to look very good in another year or two (with some high ceiling guys in the lower levels).