Yankees plan to cut payroll

Hal Steinbrenner.

You’ll have to excuse Yankees fans if their first reaction to hearing the team wants to cut payroll is dumbfounded surprise.

But according to Yankees managing general partner Hal Steinbrenner that concept is a very real one, especially with a luxury tax threshold of $189 million being put in place in two years.

“The 189 in two years is definitely a goal of ours,” Steinbrenner told reporters Thursday in Tampa. “We’re not too far off. We’re going to have a very similar payroll this year to last year, but I think we have a better team. Somewhat of an accomplishment I guess, on paper anyway.

“We’ll see, but yes that 189 is a real number and we’re going to be shooting for it.”

Presently the threshold for the luxury tax is $178 million. That figure will increase to $189 million for 2014, 2015 and 2016.

The Yankees have an estimated payroll of $210 million in 2012 — the fifth-straight season they have been over $200 million and the sixth time they have been over that mark. They haven’t been below $189 million since the 2004 team’s payroll was $184,193,950.

This year, the Yankees will be taxed at a rate of 42 percent while next year that rate goes up to 50 percent. Last year, their tax bill was $13.9 million and in 2010 it was $18 million.

If the $189 million payroll becomes the reality Steinbrenner is aiming for, their rate will reset to 17.5 percent according to the new collective bargaining agreement signed this offseason.

“Luxury tax is an option,” Steinbrenner said. “It’s a personal option.
We go into it knowing exactly what we’re doing. Being the only team that
does it, I’m just not convinced we need to be as high as we’ve been in
the past to field a championship-caliber team.

Steinbrenner believes that can be realistic achievement based on the amount of arms that will be under team control for the next few years. That includes Michael Pineda and Ivan Nova, who combined for 25 wins last year and will make a combined $846,900 this season.

“I’m a finance geek, I guess I always have been,” Steinbrenner said. “That’s my background. Budgets and balance sheets matterI just feel that if you do well on the player development side and you have a good farm system, you don’t need a $220 million payroll.”

The downside to the 2014 figure is $25 million is committed to Alex Rodriguez, $23 million to CC Sabathia and $22.5 million to Mark Teixeira. They will also have to sign Robinson Cano to a new deal since he can become a free agent after 2013.

Follow Yankees beat writer Larry Fleisher on Twitter @LarryFleisher.


News
Entertainment
Sports
Lifestyle
Local

'Five Star': A coming-of-age story about Brooklyn's gang…

'Five Star' tells a coming-of-age story about Brooklyn's gang culture at the Tribeca Film Festival.

National

New statue of Penn State's Paterno set for…

By David DeKokHARRISBURG, Pennsylvania (Reuters) - Fundraising for a new statue depicting Joe Paterno "as the man he was and not Joe the football coach"…

Local

NYPD detective shoots partner: DA

A New York City Police detective was arrested early Thursday and charged with driving under the influence while on the clock.

Local

Judge strikes down NY limits on donations to…

A federal judge on Thursday reluctantly struck down New York's limits on donations to independent political action committees as unconstitutional, potentially ushering in a new…

Music

Championship of Collegiate a Cappella: Students who are…

Tickets to this Saturday’s International Championship of Collegiate a Cappella reportedly sold out within 11 hours of going on sale.

Music

M.I.A. talks 'Matangi,' divinity, spontaneity and holograms

"There’s pressure for me to become a theatrical production like 'Glee,' or something" says M.I.A., "It’s like, 'the pressure’s on, bitches.'"

Movies

Tribeca: 'Goodbye to All That' star Paul Schneider…

Paul Schneider talks about his new film "Goodbye to All That," not acting too much and how he'd rather indulge in simple pleasures than play the scene.

The Word

Taylor Swift battles paparazzi daily at Tribeca penthouse

We're entranced by these photos of poor Taylor Swift leaving her Tribeca apartment.

NHL

Rangers unlikely to change lineup, Steve Mason in…

Rangers head coach Alain Vigneault wouldn't say much, but don't expect any lineup changes.

NBA

Jason Collins named to Time's 100 Most Influential…

Jason Collins was named to the list after coming out as the first openly gay player to appear in an NBA game.

NBA

Nets excited for Brooklyn fans to bring the…

Kevin Garnett has definitely used profanity while trash talking or in practices, but never to describe an entire borough.

NHL

Rangers turn up shot blocking in Game 3…

Game 3 of the Rangers-Flyers opneing round series was not a return to John Tortorella hockey.

Parenting

New study: Inside the wage gap between boys…

According to a new study, there's a wage gap between boys and girls, with boys earning more allowance for less chores.

Tech

From Apple TV to Fire TV, big changes…

Apple is set to launch a new generation of it's Apple TV, which grossed over $1 billion in 2013. But competition from Amazon and Google looms.

Style

Katy Perry releases a new Claire’s collection

Katy Perry expands her empire by releasing an accessories collection at Claire's.

Style

MAC & Proenza Schouler collection unveiled

MAC Cosmetics is releasing a new collection with Proenza Schouler.