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

Transit changes for Labor Day weekend

The MTA is adding additional service Friday for New Yorkers getting out of the city for the long weekend. On Friday, Aug. 29, 27 additional…

Local

Marshals, cops arrest fugitive after shootout in Queens

Federal authorities arrested a fugitive hiding out in Queens after he shot at U.S. Marshals and officers with the New York City Police Department.

Breaking: National

Peter Theo Curtis: American released by Syrian militants…

An American writer freed this week from two years in the captivity of insurgents in Syria spoke briefly outside his family's Cambridge home Wednesday of…

News

Rock legend Neil Young files for divorce after…

The legendary Canadian rocker Neil Young has filed for divorce from his wife of 36 years.

Movies

Review: 'The Last of Robin Hood' is a…

Dakota Fanning plays Errol Flynn's (Kevin Kline) teenage gal pal in "The Last of Robin Hood," which takes a scandal and makes it dully empathetic.

Movies

Review: The uneven 'Life of Crime' mostly gets…

Elmore Leonard's "The Switch" becomes the new indie crime dramedy "Life of Crime," with Jennifer Aniston as a kidnapped woman whose husband won't pay up.

Movies

Review: Pierce Brosnan gets a cut-rate Bond knockoff…

Pierce Brosnan tries to reclaim his glory days with the spy thriller "The November Man" but instead gets a sad DTV-style ripoff with lame action.

Music

Tiesto headlines Made in America

Electronic music legend Tiesto is ready to get in touch with his inner Rocky at the Jay Z-curated Budweiser Made in America festival this weekend…

College

When are 2014 college football playoffs? (Schedule, date,…

When and where are 2014 college football playoffs? A look at the schedule, date, TV, time for the semi-finals at championship game.

NFL

Dimitri Patterson suspended only for rest of preseason…

Dimitri Patterson ended up getting just a slap on the wrist.

Sports

Eugenie Bouchard excited for 'rowdy' fans at US…

Eugenie Bouchard is sure to endear herself to New York's tennis faithful as she tries to win her first grand slam title across the next two weeks.

MLB

MLB Power Rankings: Angels and A's still at…

MLB Power Rankings: Angels and A's still at top, Nationals climb

Career

Stop eating lunch at your desk

What are you doing for lunch today? If you are like most workers, you'll be eating at your desk - which isn't much of a…

Parenting

Lure your baby to sleep with Maroon 5…

These new renditions of "Moves Like Jagger" and "Payphone" are Maroon 5 like you've never heard them before.

Wellbeing

Who is having the most orgasms?

  Single lesbians report having orgasms more often than heterosexual women but both gay and straight men still come out on top of the climax…

Home

Jonathan Adler shares his tips for a great…

Jonathan Adler took a break from boogie boarding at his beach house to tell us how to keep that Labor Day party festive.