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Sherman says extensions could help with 2014 budget

Joel Sherman wrote an article today offering up some ways to lower the Yanks Luxury Tax bill in 2014.  He thinks they could restructure and/or extend the contracts of ARod, Cano & Granderson right now to help out the Annual Average Value of their deals.

He writes:

“Creativity has not really been a Yankees strong suit when it has come to contracts.Their financial caveman ethos has been: See what like, buy it.In recent years they have tried to employ some financial discipline. Now creativity also will be a requirement if they are to honor a vow to drop under the $189 million luxury tax threshold in 2014.”

Since ARod will make less money starting in 2014, the final 4 yrs on his deal will only pay him $86 Million. However he also has $24M in milestone incentives he may hit.  He recommends guaranteeing $14M of that $24M and adding another yr to ARod’s contract, essentially signing a new 5yr – $100M deal starting in 2014 that would lower ARod’s potential Luxury Tax number from $33.5M in 2014 to $20M.  Interesting thoughts but then you have ARod for even another year in 2018 when he’s 43 years old. I like the idea but I wouldn’t add the extra yr, keep it 4 years and his cap number would be $25M instead of $33.5M – still a big savings and you don’t add another year of a 43 yr old player.

For Cano & Granderson, he recommends extending them right now.  I supported this for Cano a week or so ago although not quite the same as Sherman wants.  I definitely would not tie up Granderson with an extension now.  He’ll be 33 in 2014 so I would not sign him til he’s 36-37 right now.

But give it a read….contains some interesting thoughts though I don’t know how well it would go over with the MLBPA, Bud Selig or the players involved, but it’s food for thought.