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I had a feeling a report like this would surface eventually, but I thought it would take until next offseason. Ken Rosenthal says the Yankees’ plan to get under the $189M luxury tax threshold might not be as lucrative as the team originally anticipated due to various goings-on around the league. I’ll let him explain…

Under the labor agreement, the 15 clubs in the largest markets will forfeit an increasing percentage of their revenue-sharing proceeds starting in 2013, and become ineligible for any such money by ’16.

The revenue-sharing funds that would have gone to those clubs then would be redistributed to payors such as the Yankees. The idea is to motivate certain big-market clubs — the Toronto Blue Jays, for example — to increase their revenues, knowing that they no longer would qualify for revenue-sharing money.

From that perspective, the plan appears to be working — the Blue Jays, Washington Nationals and Atlanta Braves are among the big-market clubs that anticipate higher revenues next season, according to major league sources.

Such developments would reduce the size of the market-disqualification pot — and in turn reduce the percentage of that pot the Yankees would receive.

In English, that means there were top 15 market size teams that were not among the top 15 revenue generators, like the Nationals and Blue Jays. Those teams received revenue sharing payments but are now disqualified under the new Collective Bargaining Agreement, and the money they would have been received goes back to the clubs that paid out. Since they’re generating more revenue though, they would have received a smaller piece of a revenue sharing pie and thus the Yankees won’t get back as much. Got it?

Rosenthal cites a Joel Sherman report I don’t remember seeing that says the Yankees anticipated $10M in revenue sharing savings by getting under the luxury tax threshold in 2014. That then jumps up to $40M (annually, I assume) if they continue to stay under in subsequent years, something Hal Steinbrenner has confirmed they will do. All of that is on top of the money saved by not paying the luxury tax, which is a decent chunk of change. Just based on the team’s revenue sharing number ($10M) plus the luxury tax (~$12M) plus the general payroll reduction (~$20M), the Yankees are looking at something like $42M in savings in 2014.

None of this is a guarantee, of course. If teams like the Blue Jays and Nationals don’t generate as much revenue as expected — or if (when, really) a revenue sharing payor like the Astros turns into a payee due to a revenue drop — the Yankees will get a larger rebate on their revenue sharing payment. We also have no idea how exactly they calculated their potential savings either, but I’m guessing the club evaluated several scenarios before deciding to scale back payroll. And yeah, I’m willing to bet at least one of those scenarios involves missing the postseason and losing out on millions in playoff revenue.

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Geez, that wasn’t even a good move Brett.

Three notable rule changes were approved at last week’s owners’ meetings, and they must now being given the okay by the players’ union before they can be officially implemented this coming season. That isn’t expected to be much of an issue. Here’s the skinny on the changes, courtesy of Jayson Stark

  • The Jeff Nelson move, as Michael Kay calls it, will now be considered a balk. That’s the ol’ fake-to-third, throw-to-first move. A handful of players fall for it each year. MLB can actually implement this without the union’s approval, but they’ll run it by the players for the sake of labor relations peace.
  • Coaches and managers will now be allowed to bring interpreters to the mound. That’s a pretty big deal and not just for the Hiroki Kuroda‘s and Hyun-Jin Ryu’s of the pitching world. There’s an awful lot of young Latin American-born pitchers who have yet to fully grasp the English language out there. Heck, I still haven’t grasped it.
  • Teams can now have a seventh coach in uniform and in the dugout during games. They had been limited to six before. A number of teams are carrying second hitting coaches these days — the Yankees haven’t added one yet — and this accommodates them.
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MLB’s quarterly owners’ meetings are taking place right now, and Ken Davidoff managed to catch up with Hal Steinbrenner for a few minutes today. The team’s owner confirmed they have not had any serious talks about an extension for Robinson Cano (not new information) and acknowledged the club still needs a bat, but that’s not all. There’s more…

First thing that comes to mind: lol.

Second thing that comes to mind: The Yankees have a natural edge over the rest of the league because of their market and it’s immense money-making capabilities. Scaling back payroll even for one year is, frankly, a disservice to the fans. Doing it for multiple years is pretty close to a slap in the face. The Yankees aren’t hurting for money. They just built a new stadium and will receive hundreds of millions of dollars from their YES Network deal with News Corp., not to mention all the extra cash they’ll receive from MLB’s new national broadcast agreements. Hal’s dangerously close to saying “I know you know we make all this money, but not only are we not going to reinvest it in the team, we’re going to rub it in your face too.”

Whether they realize it or not — they don’t based on Hal’s comments — the Yankees are losing the PR war right now. The record-low ratings in our Fan Confidence Poll are not an accident. Fans are angry because they’ve done nothing to improve the team this offseason and plan to cut back on spending next winter. We’re not splitting atoms here, it’s pretty obvious why people aren’t happy with the team. If ownership and front office are truly oblivious to that, then things are going to get a lot worse before they get better.

Brian Costa has a full recap of Steinbrenner’s quotes, just in case you want to slam your head against the table a little more.

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Ten years and eight days after leaving the Yomiuri Giants and officially coming over to MLB, former Yankee Hideki Matsui has decided to call it a career. Daigo Fujikawa reports that Godzilla has retired from baseball and will make the announcement at a press conference in New York. He last played for the Rays this past season.

“Hideki is proof that baseball is an international attraction that brings people from all over the world together in their passion for the game,” said Brian Cashman in a statement. “He was the type of player and person you want young fans of this game to emulate. He played with pride, discipline and of course talent, and flourished when the lights were at their brightest. People naturally gravitated towards him, and that’s a direct reflection of his character. He was a true professional in every sense of the word and it feels good knowing he was able to raise the championship trophy as a member of the Yankees.”

Matsui, 38, spent seven massively productive years in New York. They started with a grand slam in his first Yankee Stadium game (video!) and ended with a thorough beatdown of Pedro Martinez in Game Six of the 2009 World Series. That game almost single-handedly earned him World Series MVP honors. Matsui hit .292/.370/.482 (124 wRC+) with 140 total homers in pinstripes, and his best season came back in 2004, when he produced a .298/.390/.522 (140 wRC+) line with 31 homers.

You’ll be hard-pressed to find a player more reliable than Matsui. He played in 538 consecutive games to open his career with the Yankees before suffering a fluke wrist injury sliding for a ball in the outfield in 2006, and even then he still managed 140+ games played in five of his seven years in the Bronx. Godzilla produced a .312/.391/.541 (143 wRC+) batting line in the postseason and was, without question, someone everyone wanted at the plate in a big spot.

In addition to his on-field production, Matsui was also a total professional and as classy as they get off the field. He was a True Yankee™ in every way and it was a thrill to watch him during his time in New York. The news of his retirement is bittersweet because no one wants to see their favorite players hang the spikes up, but I’m also very happy Hideki is walking away from the game on his own terms (sorta). He was a global star who had a brilliant career and deserves all the praise he gets. So long Godzilla, and thanks for the memories.

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Early last week, an agreement was reached allowing News Corp. to purchase 49% — potentially as much as 80% down the road — of the YES Network from investors like Goldman Sachs and Providence Equity. The deal is expected to be finalized by the end of the calendar year. Here’s some more on the transaction, courtesy of Richard Sandomir

  • The Yankees will retain control of all Yankees-related content on the network. The announcers will continue to be biased — “We tell our people if you want to be bipartisan and fair, don’t work for YES,” said team president Randy Levine to Sandomir — and long-running features like Yankeeography and Yankees Classics aren’t going anywhere.
  • FOX, which is owned by News Corp., will bring some programming to the network however. It doesn’t sound like a SportsCenter-esque, nightly sports news show is in the cards though.
  • The Yankees will receive $420M from News Corp. to keep the team on YES through 2042. They’re getting half of that now and the other half in three years. Just think, they’re trimming payroll in less than 16 months.
  • Just as we heard the other day, Sandomir says the Steinbrenners are unlikely to sell the team in the wake of the agreement. The team continues to make a fortune and, perhaps more importantly, the family would get slapped with a massive tax bill should they sell.
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Nov
21

The Latest on YES & News Corp.

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The Yankees officially announced an agreement that allows News Corp. to acquire a 49% stake (which could reportedly grow to 80%) in the YES Network from investors like Goldman Sachs, NJ Holdings, and Providence Equity yesterday. The deal is still pending MLB approval and is expected to close by the end of the calendar year. The sale price indicates that the network is worth approximately $3 billion right now, meaning it’s likely more valuable than the team itself. Here’s more on the transaction courtesy of Darren Rovell, Andy Fixmer, and Scott Soshnick

  • The Yankees will sell 9% of their stake in YES, lowering their share to 25% and earning the club a whopping $270M. The team might also receive a $400-500M payment separate from the rights agreement, so think of it like a signing bonus.
  • As part of the transaction, the Yankees have extended their agreement with YES to ensure the network will broadcast games through 2042. YES currently pays the team $85M annually for broadcast rights, but escalators will push that to $350M annually (!) by the end of the new agreement.
  • Goldman, NJ Holdings, and Providence will retain some stake in YES but will have the option to sell the remainder to the Yankees and News Corp. in four years for a portion of the predetermined market value of $3.8 billion. That’s what everyone expects the network to be worth in 2016.
  • Although there has been speculation (including by me) this deal with News Corp. is an indication the Steinbrenner family will look to sell the team down the line, the reporting trio all say this move puts them in better position to hold on to the club long-term.
  • Brian Heyman has official statements from Hal Steinbrenner and others, so check that out if you’re interested.
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(Seth Wenig / AP Photo)

The Yankees were swept out of the ALCS by the Tigers almost a week ago, but it wasn’t until today that Joe Girardi conducted every manager’s annual end-of-season press conference. He said the team has yet to look back and evaluate the 2012 campaign just because everyone takes a few days off to be with their families and kinda get away from baseball immediately after the season ends. They’ll obviously evaluate the club top to bottom in the coming weeks. Here are the important notes from the press conference…

On Alex Rodriguez

  • “These were things that we evaluated a lot before we made our decisions,” said Girardi when asked about benching A-Rod in the postseason. “I don’t go back and second guess myself.”
  • Girardi has not yet spoken to Alex (or any other player for that matter) about their relationship, but said “that will take place … it just hasn’t yet.” He isn’t worried about things being strained but acknowledged that actions have consequences and he will deal with them if need be.
  • Girardi said he believes A-Rod was healthy in the postseason and was just struggling, particularly against righties.
  • “Can Alex be a very good player again? Absolutely, I don’t have any question in my mind,” said the skipper. He praised A-Rod’s baseball smarts and said he expects him to be his everyday third baseman next season.
  • Chad Jennings has Girardi’s full quotes about A-Rod if you aren’t sick of hearing about it yet.

On the playoffs…

  • “Yes it was somewhat puzzling,” said Girardi on the offense’s struggles. He attributed Robinson Cano‘s disappearing act to being pitched well and just falling into a poorly-timed slump. He did acknowledge that Robbie was frustrated, which likely compounded the problem.
  • Girardi said he doesn’t think the team’s unfavorable postseason schedule contributed to their lack of hitting, ditto all the tough games they had to play down the stretch in September. He basically said he doesn’t believe his team was worn out after a month of playoff-type games.
  • “I hope not,” said Girardi when asked if he may have he lost the trust of some players by sitting them in the postseason. “I was making moves trying to win ballgames … I’ve been honest with our players and I will continue to do that, and I will do my best for this organization to win every game.”
  • Girardi attributed the dull Yankee Stadium atmosphere in the postseason to a lack of scoring on the team’s part, nothing more. “I think our fans are very passionate about the Yankees (because) we see it even on the road.”

On injuries…

  • “(It has) not taken place,” said Girardi when asked if CC Sabathia has gone to visit Dr. James Andrews about his elbow. He is encouraged by his ace left-hander’s performance in September and the ALDS and he expects to have him in Spring Training. “We’re always concerned that it’s maybe something more than you think it is … I don’t like people going to see doctors (but) sometimes people have to be evaluated to make sure everything is okay.”
  • “We expect him to be back and playing for us next year on Opening Day,” said Girardi about Derek Jeter and his fractured ankle. He added that there are always concerns following a surgery, including Jeter pushing his rehab too hard and having some kind of setback.
  • Mariano Rivera did throw sooner than expected this year but Girardi never did ask him if he will definitely return next season. “I don’t think you push a rehab like he pushed it unless you have some interest in coming back,” he said.
  • There were no undisclosed or “hidden” injuries this year, so to speak. Russell Martin‘s hands are banged up but that is typical catcher stuff and isn’t a long-term concern.
  • Both hitting coach Kevin Long (elbow) and third base coach Rob Thomson (hip) will have surgery this offseason, if you care.

On free agents and the team moving forward, etc…

  • “There’s a lot of hunger and fire in him,” said Girardi about Andy Pettitte, but he doesn’t know if the veteran southpaw will return next year. He expects him to discuss things with his family before making a decision.
  • He mentioned briefly that like Pettitte, Hiroki Kuroda is among the players who will make a decision about his future and playing beyond this year.
  • Girardi said he was unsure about Ichiro Suzuki coming back next year but he knows the veteran outfielder enjoyed his time in New York. He also praised Ichiro for making adjustments like playing left field and batting towards the bottom of the order.
  • “I think this kid has something to offer us,” said the manager about Eduardo Nunez while also acknowledging that his role for next year is undetermined because other parts of the club are unsettled. “There is talent there, there is speed, there is excitement, he has a lot to offer.”
  • “There’s a lot of players we have to decide what we’re going to do with, but I believe when Spring Training starts next year, we’ll be a championship club,” said Girardi, acknowledging that the team has a lot of players with open contract situations.
  • He also spoke about the Yankees getting power from non-traditional power sources (specifically catcher, second base, and center field) and their ability of the offense to absorb the loss of a homerun hitter (i.e. Nick Swisher) if that happens this winter.
  • Girardi acknowledged that the team has a busy offseason coming but doesn’t expect the chaos to be a problem. “Sometimes quiet is a bad thing,” he joked.

On the status of him and his coaches…

  • “No. The pressure you see I put on myself,” said Girardi when asked about the pressure of entering a contract year. He doesn’t expect the team to talk about a new deal until his current one expires and he doesn’t anticipate asking for an extension before then either.
  • Girardi expects the entire coaching staff to return next year but again pointed out that the team has not yet discussed everything.

Miscellaneous…

  • Girardi praised his role players for stepping up into more prominent roles than expected this year, mentioning Raul Ibanez, David Phelps, and Cody Eppley by name.
  • When asked about Cano’s general lack of hustle down the line to first base, Girardi said he “will address with every player to play hard.”

Oct. 3rd: MLB announced both agreements, which take effect in 2014. For us fans, the biggest piece of news is that the blackout rules for nationally broadcast FOX Saturday games will be lifted. If you live outside of the Tri-State area, you’ll now be able to click on MLB.tv to watch the Yankees on Saturdays regardless of who FOX is broadcasting locally. That’s awesome. Richard Sandomir has some more details as well.

Sept. 20th, 7:05pm: Maury Brown has the actual figures. Each club currently gets $23.72M annually in nationally television money, and that will increase to $50M with the new deals. So the revenue more than doubled just like that. Wow.

5:30pm: Via the AP, MLB is nearing new eight-year broadcasting contracts with FOX and TBS that will run through 2021. The new deals are expected to approximately double the revenue the league receives from the networks to about $800M. FOX gets to keep exclusive World Series rights while the two stations split the other postseason rounds.

At the moment, each of the 30 clubs gets something like $10-15M annually from the league’s broadcasting deals, but that figures to go up considerably with the new contracts. Not all $800M goes to the teams, but a huge chunk of it does. The Yankees already have more money than everyone else, so the extra revenue doesn’t really help them, but it will help direct competitors like the Rays, Blue Jays, and Orioles.

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(Mike Stobe/Getty)

The regular season ends tomorrow, so all across the league owners are spending the final series with their teams as they look forward to the postseason, search for answers, or just want to pal around with the fellas after being off-the-radar for the last six months. Maybe it’s all three in some cases.

Hal Steinbrenner was at Yankee Stadium yesterday, and he briefly spoke to the media prior to last night’s blowout win. Hal isn’t his father, so there wasn’t anything too exciting to come out of the media session. There is still some stuff to talk about, however. The following quotes come courtesy of George King and Bryan Hoch.

On whether jobs depend on how the Yankees finish the season…

“Are jobs riding on this? Not that I know of. Jobs are not riding on this and that’s not something I am concerned about right now. We look at everything in the off-season as we always do.”

In our recent polls, the majority of RAB readers said that neither Brian Cashman nor Joe Girardi should be fired or would have been fired had the Yankees failed to qualify for the postseason. A wildcard spot is clinched, but I suspect that sentiment will not change regardless of how the Yankees finish the season.

Cashman is under contract through 2014 and I never really thought/still don’t believe his job is in any kind of jeopardy. Girardi’s contract is up after next season and I was in the “he shouldn’t be fired but will be” camp with regards to his job security had the Yankees missed the postseason. He a fine manager, not great and not terrible, but five years is a pretty long time for stick around in this business. With Terry Francona available and waiting to be hired, my gut said Joe would have been the easy scapegoat.

On the tight race in the final month of the season…

“I am excited, I think we all would like a bit more breathing room, we have zero breathing room. But the guys have been playing tough and we have (Mark Teixeira) back Monday night and he will give us a boost so I am excited … I was concerned (about blowing the ten-game lead), I wouldn’t say I was worried. These guys know what is expected out of them. They are professionals. I had no doubt they were going to persevere the best they could. We kept getting a big guy back and another big guy goes out and it’s frustrating after a while. But we have everybody back now and we are at full strength and we will keep pressing on.”

Nothing really to add here, I just find it a little funny that he was “concerned” and not “worried.” I know there’s a difference, but I still got a nice chuckle out of this.

On the plan to get under the $189M luxury tax threshold by 2014…

“I’ve made it clear that it’s very important to me for several reasons. Again, you’re talking about a 10 percent reduction in payroll. I don’t see that as an outrageous concept. I never have.”

The 2014 payroll plan was just a well-sourced rumor until Steinbrenner (and Cashman) confirmed it back in Spring Training. I don’t know of any fans that actually like the plan since what the hell, if you have the money spent it. That said, I think we can all understand why they’re striving to get under the luxury tax considering the potentially enormous savings. That doesn’t mean we have to like it, but part of me is hoping that it will force the team to be smarter with their spending and decision making. A $189M payroll is still nothing to sneeze at anyway, if they can’t contend with that then the problems go well beyond the money.

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After a couple of weeks of minor details leaking out, MLB and the Yankees (and every other team) officially released the 2013 schedule today. As expected, the Bombers open next season with three games at home against the Red Sox. The first game will be played on April 1st, a Monday, then the next two on the 3rd and 4th. They always have the off-day in there just in case the weather stinks. Nineteen of the club’s first 32 games will be at home. You can see the full schedule here.

With interleague play now spread out throughout the entire schedule, the Yankees will welcome the Diamondbacks to the Bronx for three games in mid-April. I’m sure Justin Upton will be happy to see his former teammates so early in the season. Other interleague dates include trips to play the Rockies (May 7th-9th), the Dodgers (July 30th and 31st), and the Padres (August 2nd-4th) on the road. The D’Backs, Dodgers (June 18th-20th), and Giants (September 20th-22nd) are all coming to Yankee Stadium, so brush up on your NL West news.

The Subway Series has been reduced to four games, a home-and-home series from May 27th through the 30th. The first two games will be played in CitiField, the next two in Yankee Stadium. That’s a Monday through Thursday, and I’m kinda surprised they didn’t schedule that on a weekend. Very odd. Either way, I’m happy that they reduced the number of games, six felt like too much. Playing the four games against the Mets in four days will be fun, especially the two-stadium aspect.

The Yankees only have two West Coast trips next year — a nine-game swing through Seattle, Oakland, and Anaheim in mid-June, then the little five-gamer against the Dodgers and Padres in late-July/August. Despite the typical AL East-heavy September schedule, the Bombers actually close next season in Houston against the Astros, who are joining the AL West next year. If the Astros continue to be as bad as expected, that could be a big help for the Yankees if the race for a playoff spot goes right down to the final weekend of the season. The final game of the season will be played on September 29th, a Sunday.

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