Common Misconceptions about the Yankee Payroll Structure

[TheKilo]

"They've still cut payroll"

I've heard this argument a lot since the Teixeira signing went down. The contracts of Abreu, Giambi, Mussina, Pavano, and Pettitte have become CC, AJ, and Teixeira. As it has worked out,the values of the contracts have actually reduced Yankee payroll form last year despite spending $400+ million on three players.

However, I have a few questions for those who are using this argument as justification for these big contracts, especially in the wake of the economy falling out and potentially hitting rock bottom some time in the near future.

The Yankees gave the aforementioned five individuals the bloated and unreasonable contracts in the first place. Why is it that the Yankees, in giving these individuals such bad contracts, are allowed to set the baseline for what is considered to be the right amount for their payroll?

They spent an incredible amount of money on these five individuals and they turned out to be bad contracts at the end of their respective deals. Why can they go out, spend 95% of that value, and call it a paycut - when they inflated their payroll in the first place?

"They play by the rules, stop whining."

Yes, it is true the Yankees pay the luxury tax, and revenue sharing, and the likes. The question I have for Yankee fans is - how can you justify asking the city for more money to finish this stadium? They are getting huge breaks from revenue sharing thanks to the construction of the new stadium and are using that cash to spend on these free agents - while in the same breath asking for even more money from the city. The end result? Higher taxes for NYC taxpayers and the luxury boxes aren't being sold at the rate they are expecting. How can you justify any of this activity?

[BSN07]

"They've still cut payroll"

I've heard this argument a lot since the Teixeira signing went down. The contracts of Abreu, Giambi, Mussina, Pavano, and Pettitte have become CC, AJ, and Teixeira. As it has worked out,the values of the contracts have actually reduced Yankee payroll form last year despite spending $400+ million on three players.

However, I have a few questions for those who are using this argument as justification for these big contracts, especially in the wake of the economy falling out and potentially hitting rock bottom some time in the near future.

The Yankees gave the aforementioned five individuals the bloated and unreasonable contracts in the first place. Why is it that the Yankees, in giving these individuals such bad contracts, are allowed to set the baseline for what is considered to be the right amount for their payroll?

They spent an incredible amount of money on these five individuals and they turned out to be bad contracts at the end of their respective deals. Why can they go out, spend 95% of that value, and call it a paycut - when they inflated their payroll in the first place?

"They play by the rules, stop whining."

Yes, it is true the Yankees pay the luxury tax, and revenue sharing, and the likes. The question I have for Yankee fans is - how can you justify asking the city for more money to finish this stadium? They are getting huge breaks from revenue sharing thanks to the construction of the new stadium and are using that cash to spend on these free agents - while in the same breath asking for even more money from the city. The end result? Higher taxes for NYC taxpayers and the luxury boxes aren't being sold at the rate they are expecting. How can you justify any of this activity?

Most popular answer,


Survey says,


"Cause we are dah Yanks" badda bing....

[example1]

Kilo-
I agree with the premise that just because the Yankees spent an absurd amount of money previously does not mean they should aim to spend that amount again, or that anything less is somehow "cutting payroll".

However, I think the exact same standard applies for the Red Sox, who have paid in the 120-135m range the past few years and suddenly find themselves in the lower payroll area. This is likely due to, surprise, the departure of Manny Ramirez and his significant salary. He made up somewhere between 1/5th and 1/7th of their payroll and he's "off the books" (no, not really, they'll be paying him for a long time). I don't think salary reallocation is a good measurement of a team having made good use of their money.

[26 to 6]

lol I feel like Kilo is just looking to start fights :lol:


Why is it that the Yankees, in giving these individuals such bad contracts, are allowed to set the baseline for what is considered to be the right amount for their payroll?
It's their money, they're allowed to do with it what they please. Why should they let someone else determine the right amount for their payroll. This one doesn't make much sense to me man. Would you like someone determining how YOU handle your finances? If they have the money, and they want to spend it then they are free to do so.


Yes, it is true the Yankees pay the luxury tax, and revenue sharing, and the likes. The question I have for Yankee fans is - how can you justify asking the city for more money to finish this stadium? They are getting huge breaks from revenue sharing thanks to the construction of the new stadium and are using that cash to spend on these free agents - while in the same breath asking for even more money from the city. The end result? Higher taxes for NYC taxpayers and the luxury boxes aren't being sold at the rate they are expecting. How can you justify any of this activity?
This seems to be the popular debate among you Red Sox fans lately, and it's become somewhat annoying. Anyway, I don't think it's fair to bunch these two debates into the same category, the new Stadium and the player personnel have nothing to do with each other. It's a big organization with tons of employees, and they all don't do the same stuff. Brian Cashman, GM and head of baseball operations who handles the player personnel and negotiates free agent signings has NOTHING to do with the Stadium. That's guys like Levine, Trost, Hal, etc. While you're not wrong in your points, don't fault Cashman for doing his job. Why should he let what's going on in another area of the organization over which he has no control affect how he does his job in improving this team. I know it sounds like a weak argument, which will probably be criticized and picked apart by you guys, but that's the truth. If the people above him tell him to go out and spend on player acquisitions then that's what he's going to do. Is it wrong what's going on with the Stadium and the public dollars being put into it, yeah of course; but it's not gonna stop them from trying to put a winner on the field. You guys can disagree, and argue it all you want, which you certainly have the right to do so, and are justified in doing so. But It just bothers me the extent that the bitching of the Red Sox fan base goes to. Was this thread really necessary considering we've discussed all of these topics in so many other threads? I just feel like if it wasn't the Yankees doing this, you guys wouldn't really give a shit. If it was, say the A's who were building a new Stadium, looking for government bonds and tax dollars to fund it, and went out and signed three or four free agents nobody would care, of course they wouldn't be as costly as the Yankee acquisitions, but that's just the nature of the beast. I just don't see why it upsets you guys so much, not a cent of any of your tax dollars are going into that Stadium.

[pinstripezac]

" ]They are getting huge breaks from revenue sharing thanks to the construction of the new stadium and are using that cash to spend on these free agents - while in the same breath asking for even more money from the city.

you know what they are doing that's even worse than that ?

I heard uncle geo was excepting soc security

seriously what's your point

if you had a biz you wouldn't want the cheaper loans?

or that all government employees should take a salary cut

to keep the taxes down


your beef is with the system , not with the yankees

it's all normal and no different than the sox doing it for the renovations



" The question I have for Yankee fans is - how can you justify asking the city for more money to finish this stadium?


The end result? Higher taxes for NYC taxpayers and the luxury boxes aren't being sold at the rate they are expecting. How can you justify any of this activity


it really has little to do with the tax rates, you are talking about money they would not see whether they gave the loans or not


no idea what the lux boxes have to do with it

don't you know how many they sold ?

you probably do that's why it's bothering you so much



and to bring the timing up of these latest loans

has no merit, this horse left the barn way before the economy went south

[Gom]

"They've still cut payroll"
They have.


I've heard this argument a lot since the Teixeira signing went down. The contracts of Abreu, Giambi, Mussina, Pavano, and Pettitte have become CC, AJ, and Teixeira. As it has worked out,the values of the contracts have actually reduced Yankee payroll form last year despite spending $400+ million on three players.

However, I have a few questions for those who are using this argument as justification for these big contracts, especially in the wake of the economy falling out and potentially hitting rock bottom some time in the near future.

The Yankees gave the aforementioned five individuals the bloated and unreasonable contracts in the first place. Why is it that the Yankees, in giving these individuals such bad contracts, are allowed to set the baseline for what is considered to be the right amount for their payroll?

Why not? It is THEIR business. THEY have the money. THEY choose to spend it, however THEY wish to do so. Do THEY pay a luxury tax and help subsidise other teams? Yes. Do THEY have a right to spend their money the way THEY see fit? Yes.


They spent an incredible amount of money on these five individuals and they turned out to be bad contracts at the end of their respective deals. Why can they go out, spend 95% of that value, and call it a paycut - when they inflated their payroll in the first place?

For every contract over 5 years you show me that was a good deal in the final year, I'll show you five bad ones. It's the nature of the beast. I am saddened that you don't see this.


"They play by the rules, stop whining."

You do whine more than any woman I've ever dated. Seriously...and I've dated some queen whiners.


Yes, it is true the Yankees pay the luxury tax, and revenue sharing, and the likes. The question I have for Yankee fans is - how can you justify asking the city for more money to finish this stadium?

I don't. Any fan of any team that can justify public funds for a private entity is uneducated on the matter. This goes for the Yankees, AIG, Lehman Brothers, the auto industry...however, if I was the CEO of those companies, or the owner of the Yankees, would I go to the government for a handout? You bet I would. I've said this time and time again...blame the POLITICIANS.


They are getting huge breaks from revenue sharing thanks to the construction of the new stadium and are using that cash to spend on these free agents - while in the same breath asking for even more money from the city. The end result? Higher taxes for NYC taxpayers and the luxury boxes aren't being sold at the rate they are expecting. How can you justify any of this activity?
The fact that they get this break is part of the collective bargaining agreement. New stadiums benefit the owners, so they have made it more appealing and fiscally feasible for the owners.

Do I justify what they have done? No. However, it is their choice to run their business as they see fit.

You whine about this endlessly, but I really think you don't understand it or it is a badly disguised case of sour grapes.