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Machado: Update - Manny, do you officially like us?


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1 minute ago, soxfan2014 said:

Yeah how do they not have money? Lol it's one thing if someone said "payroll space under luxury tax" but even then, a first year penalty for 20% for the overage isn't really that bad.

They aren’t anywhere close to the tax number.

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1 minute ago, iamshack said:

They aren’t anywhere close to the tax number.

Once their arb numbers come in, counting the fact that a few guys have ballooning contracts that will still average out this year and the $15 million in fixed retirement and health care costs we were talking about with the Dodgers, their luxury tax total has to be close to $200 million right now. 

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35 minutes ago, Balta1701 said:

Once their arb numbers come in, counting the fact that a few guys have ballooning contracts that will still average out this year and the $15 million in fixed retirement and health care costs we were talking about with the Dodgers, their luxury tax total has to be close to $200 million right now. 

https://www.spotrac.com/mlb/new-york-yankees/payroll/

how much in arb do they expect to add?

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1 minute ago, iamshack said:

https://www.spotrac.com/mlb/new-york-yankees/payroll/

how much in arb do they expect to add?

B-R puts their arb totals at something close to $55 million and I think their numbers are reasonable. Gregorius, Betances, Gray, Romine, Hicks are all arb year 3, Paxton is arb 2, Severino, Kahnle, Bird, Lavarnaway are Arb 1. 

A couple of their contracts have buy outs or inflate over time, those amounts are added into the guaranteed dollars while trying to calculate the luxury tax, that's another $5 million  or so. So right there, we're over $180 million luxury tax number compared to the raw salary total. 

We also had a discussion with the Dodgers luxury tax a couple days ago where there's an extra $15 million in teams  luxury tax numbers to pay for pensions and retirement plans and health coverage, I'm less certain about this line item but someone (was it DA?) clearly showed a calculation for the Dodgers where that was mandatory and included. I'm less certain about how to deal with that, but it seems like a real thing.

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19 minutes ago, Balta1701 said:

B-R puts their arb totals at something close to $55 million and I think their numbers are reasonable. Gregorius, Betances, Gray, Romine, Hicks are all arb year 3, Paxton is arb 2, Severino, Kahnle, Bird, Lavarnaway are Arb 1. 

A couple of their contracts have buy outs or inflate over time, those amounts are added into the guaranteed dollars while trying to calculate the luxury tax, that's another $5 million  or so. So right there, we're over $180 million luxury tax number compared to the raw salary total. 

We also had a discussion with the Dodgers luxury tax a couple days ago where there's an extra $15 million in teams  luxury tax numbers to pay for pensions and retirement plans and health coverage, I'm less certain about this line item but someone (was it DA?) clearly showed a calculation for the Dodgers where that was mandatory and included. I'm less certain about how to deal with that, but it seems like a real thing.

I believe sportrac accommodates for those things. As for the arb money, it’s not unlikely they’d move some of those players should they sign Machado/Harper. 

I don’t believe the tax would be an issue for them. 

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6 minutes ago, iamshack said:

I believe sportrac accommodates for those things. As for the arb money, it’s not unlikely they’d move some of those players should they sign Machado/Harper. 

I don’t believe the tax would be an issue for them. 

I think their number is currently much closer to the $180-$195 million range, but I don't think avoiding the tax would be a reason that they would not sign either of these guys.

I think you have to be willing to pay more for the player than they are. 

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I’ve never heard pension and healthcare plans being factored into luxury tax accounting, unless there is some special circumstances.

Yankees are projected to be at $180M right now, $26M away from luxury tax if they don’t move a contract. Signing Machado would almost certainly put them into luxury tax. That’s not factoring in their pursuit of a high leverage reliever, which would cost them another $8-10M. MLB luxury tax will have multi-year impact on teams and it’s not something teams want to go into unless they have to. If Yankees do sign Manny, they will most likely be in luxury tax the next several years, and being repeat offenders is when it becomes a bigger issue.

Edited by thxfrthmmrs
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26 minutes ago, thxfrthmmrs said:

I’ve never heard pension and healthcare plans being factored into luxury tax accounting, unless there is some special circumstances.

Yankees are projected to be at $180M right now, $26M away from luxury tax if they don’t move a contract. Signing Machado would almost certainly put them into luxury tax. That’s not factoring in their pursuit of a high leverage reliever, which would cost them another $8-10M. MLB luxury tax will have multi-year impact on teams and it’s not something teams want to go into unless they have to. If Yankees do sign Manny, they will most likely be in luxury tax the next several years, and being repeat offenders is when it becomes a bigger issue.

@Chicago White Sox posted this link of the Dodgers tax accounting earlier this week in this post . There is a $14.04 million "team benefit costs" line item. Here are more details on it. I was unaware of this until that post by CWS either and credit him for educating.

Quote

The calculations for final payrolls are for the 40-man roster, that also “include the average annual values of contracts and $14,044,700 per club for benefits and extended benefits, which include items such as health and pension benefits; club medical costs; insurance; workman's compensation, payroll, unemployment and Social Security taxes; spring training allowances; meal and tip money; All-Star game expenses; travel and moving expenses; postseason pay; and college scholarships,” according to the Associated Press. The totals include “incentive bonuses, non-cash compensation, buyouts of unexercised options and cash transactions. In some cases, parts of salaries that are deferred are discounted to reflect present-day values.”

 

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8 minutes ago, Balta1701 said:

@Chicago White Sox posted this link of the Dodgers tax accounting earlier this week in this post . There is a $14.4 million "team benefit costs" line item. Here are more details on it: (the 14.0 million was the 2017 number, 14.4 would be 2018). 

 

Ok, that's sounds about right according to #7 here. 

https://medium.com/@dffreedman/competitive-balance-tax-complicates-teams-decisions-during-all-seasons-bec75562521a

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Has anyone else commented on this rumor?  Rosenthal hasn’t posted to Twitter in a few days, so he may in fact be on vacation as Shack had suggested.  But all the other major insiders have posted since Dan Clark’s “breaking news” and there hasn’t been a peep from any of them.  All I’ve seen is a couple questionable New York “insiders” jump on this but bring nothing new to the table.  The silence is pretty odd if there’s any truth to this rumor and I find it really odd that mlbtraderumors hasn’t made a post about this yet if Dan Clark had even the slightest amount of credibility.

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18 minutes ago, Chicago White Sox said:

Has anyone else commented on this rumor?  Rosenthal hasn’t posted to Twitter in a few days, so he may in fact be on vacation as Shack had suggested.  But all the other major insiders have posted since Dan Clark’s “breaking news” and there hasn’t been a peep from any of them.  All I’ve seen is a couple questionable New York “insiders” jump on this but bring nothing new to the table.  The silence is pretty odd if there’s any truth to this rumor and I find it really odd that mlbtraderumors hasn’t made a post about this yet if Dan Clark had even the slightest amount of credibility.

The longer this goes unacknowledged by other new outlets the better the situation is for the Sox. You just know someone somewhere is trying to confirm with either party whether a deal is in place but 24 hours has passed and not a peep. I also pointed out the MLBTR thing today and it basically shows even they are questioning the legitimacy of this "news".

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3 hours ago, The Beast said:

An announcement and some clarification on what they are planning to do. I am beyond confused by the Encarnacion rumors other than it wouldn’t take much to get him and he could hold down third base for a year. Jose Martinez would make sense if one of or both Alonso and Abreu were sent packing. I don’t understand what the plan is and time is going to tell. I think Machado is as good as a Yankee and would put money on it if I bet.

You don't understand that EE is possibly both a negotiation tool and part of a plan B?

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Plan B is to bench Palka, the only young player who really came out of nowhere to show some promise?

Sounds about right.

What surplus value could he possibly have at that salary?  OTOH, his agent might actually believe the White Sox are perhaps the only MLB team willing to play him at third?

Wouldn’t it be simpler to just announce they’re moving Moncada to third?

 

Edited by caulfield12
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16 minutes ago, caulfield12 said:

Plan B is to bench Palka, the only young player who really came out of nowhere to show some promise?

Sounds about right.

What surplus value could he possibly have at that salary?  OTOH, his agent might actually believe the White Sox are perhaps the only MLB team willing to play him at third?

Wouldn’t it be simpler to just announce they’re moving Moncada to third?

 

There is zero chance the Sox trade for EE and move him to 3B.

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  • Heads22 changed the title to Machado: Update - Manny, do you officially like us?
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