Texeira to Yankees for 8/$180; Brewers Compensation for CC Drops to 2nd round (plus sandwich pick)

[logan82]

The main issue is that they can basically grossly overspend to obtain any player they want, and prevent other teams from even having a chance to sign them.

 

and still miss the playoffs because they didn't properly build their team despite seemingly unlimited resources.

[Invader3K]

They missed the playoffs last year for the first time in, what? 15 years or so? That argument doesn't really hold much water. Now, they haven't gone far into the playoffs the last few years, but there are so many things you can pin that on. We've all seen that the playoffs can be a crap shoot at best, especially when the first round is best of five.

 

The fact is, their high payroll and dearth of talent gives them a very high chance to make the playoffs every year. Small market teams will generally never have that advantage under the current system. About the only positive thing I can take out of this is that every sport needs villains, and the Yankees are the equivalent of Satan himself when it comes to MLB...other than maybe Scott Boras.

[Ennder]

The same teams make the playoffs every year in most sports, every system has built in advantages. Baseballs is just easier to spot. Football as an example is setup such that bad teams have to overspend to get players and players will go to the best teams for less than market price. A team like the Lions while poorly run also has financial hurdles to jump over to ever get out of the gutter.

 

They missed the playoffs last year for the first time in, what? 15 years or so?

 

13 years and they missed the playoffs the previous 13 years before that. The braves made the playoffs 14 of 15 years back in the 90's and they didn't have some huge payroll. The Red Sox who do have a large payroll missed the playoffs 10 times since 2000. The Cubs who have a large payroll have made it 4 times since 1990.

 

Yeah a large payroll helps but it is generally overstated. The Yankees are the one team with an overwhelming advantage.

[clancyphile]

Just how much money did the Yankees get from selling Darrell Rasner's contract to a Japanese team!?

[MJLiverock]

Yeah the argument that the Yankees spending is the wrong way and the Brewers building from within is the right way doesn't hold much water with me either. The Yankees missed the playoffs for the first time in years while the Brewer made the playoffs for the first time in years. The Yankees missing the playoffs by a slight bit while the last round of their huge dollar signings were in the final stages of their contracts is no big surprise. They also had injuries to Joba and Chien Ming Wang, who they counted on and were actually produced from within. Other guys like Kennedy just didn't live up to expectations for this transition year as their aging stars played out the final years of their contracts.

 

Sure in 7 or 8 years the Yankees will be in the same situation and people will say see CC. and Tex aren't worth the money they are paid in the final year of the deal but if they have 3 rings in the the previous 7 years who cares about getting the most from each dollar spent in those last years. (The Yankees don't care about "overspending" because to them it isn't overspending and it doesn't hurt them. Carl Pavano's deal would have crippled the Brewers, it didn't even register a blip for the Yankees.)

 

So in 6 or 7 years when the Yankees have a down year of winning 85 games and not making the playoffs, all their aging contracts will drop off and they wil go out and sign the next crop of superstars.

 

There is no trophy for wins pro rated for salary level. It doesn't matter if fans think the Yankees paid to much for anyone if they can afford and they win they get the trophy or the chance to compete for the trophy in the playoffs.

 

If you have a million dollars to buy a house in a neighborhood where all the houses cost $250,000 aren't you going to spend a little extra to get the very best and nicest house you can since it really doesn't matter if you spend $350,000 for it because it is still well within your means and budget.

 

And as was stated the Yankees basically traded their first, second, and third round picks for Tex, CC, and A.J. While still retaining a 1st round pick for not signing a guy last year. I wonder if it was planned on the Yankees part, knowing the free agent crop this year and their money dropping off the books that hey why not just carry over a protected pick for 2009 if we don't sign this guy who we aren't that high on.

 

This is the part that amazes me if true (I don't recall where their protected pick falls), the Yankees can sign all these guys and still have a better 1st round pick than the Brewers.

[Invader3K]

The Red Sox who do have a large payroll missed the playoffs 10 times since 2000.

Huh? They've only missed the playoffs four times in this decade, including 2000. Not sure what you're referring to here.

 

Yes, I remember the days of the Yankees being a bad team as well, since I first started really following baseball as a kid in the late '80s. I remember when they had Winfield, Mattingly, and that was about it, for quite a while. They definitely changed their philosophy in the early '90s and started to change the way they operated, and it paid off. They will always have advantages that they are partly entitled to, but I don't think the small market teams should be so disadvantaged like they are right now. Yes, sometimes a team like the Rays or Rockies manages to make it to the World Series, but it requires a whole hell of a lot of luck, and basically requires the front office to run flawlessly. Even if Sabathia and Burnett both shatter their arms and never pitch again, Cashman can just go out and sign someone else to a huge contract. He has about the easiest job any sports executive ask for.

 

I guess part of what irks me is that the Brewers are basically being punished for running their team the right way, and being as about as successful as anyone can reasonably ask. Their revenue streams seem to be basically maxed out (of course they're saddled with the worst TV contract in the majors, thanks Wendy). It's not like they can draw many more fans either. Only getting a second round pick for Sabathia is a joke, where as the Angels get a first rounder they probably don't even really need. It's like we as fans get punished for rooting for a small market team. Sometimes I almost wish I had been born in New York, since being a Yankees fan has to be pretty damn easy these days.

[Samurai Bucky]

Don't worry... Peter Gammons will still say the Red Sox are better. That's what beat writers are supposed to say, right?

[Invader3K]

Well, you can make the argument. The Red Sox might still have a bit better pitching depth. That's kind of beside the point here, though.

[monty57]

Of course we are all rooting against capitalism

 

I don't see it that way. In capitalism, you have to have "creative destruction," meaning that the weak/outdated/poorly run businesses are destroyed and replaced by the strong/modernized/well run business. In baseball, the small market teams are not going to fold up if the big market teams get stronger. Every team is essential, in that a game requires two teams to play. Microsoft could, in theory, beat all of their competition to the point that they would all go out of business, and we would still have computer software... it would just all come from one provider. If the Yankees forced all of their competition out of business, they wouldn't get many fans watching them play intersquad games every day.

 

In reality, MLB is the monopoly, and the teams are all part of the same business. If the business (MLB) were well run, it would choose the model that was most profitable and follow that path. If it is most profitable in its current form, we wouldn't see changes. If it would be more profitable with greater parity, then we would see changes. Unfortunately, the business (MLB) is run by it's department heads (the team owners), which is a flawed business model. Throw in the fact that the players can collude to form a union with a unified message, but the owners cannot collude to form a unified message, and things can get really screwy.

[logan82]

The Yankees also have 2nd round pick from last year as well I believe.

 

Nobody is saying that any of these signings are going to hurt the Yankees. They could have upgraded catching or 2nd base. They could have afforded to trade one of their better pitching prospects to the Brewers for Mike Cameron and signed Adam Dunn. That would have had a bigger positive impact than signing Teixiera. The point is that no matter how much money the Yankees spend, they are still spending poorly.

[MJLiverock]

Of course we are all rooting against capitalism

 

If the Yankees forced all of their competition out of business, they wouldn't get many fans watching them play intersquad games every day.

 

In reality, MLB is the monopoly, and the teams are all part of the same business. If the business (MLB) were well run, it would choose the model that was most profitable and follow that path. If it is most profitable in its current form, we wouldn't see changes. If it would be more profitable with greater parity, then we would see changes. Unfortunately, the business (MLB) is run by it's department heads (the team owners), which is a flawed business model. Throw in the fact that the players can collude to form a union with a unified message, but the owners cannot collude to form a unified message, and things can get really screwy.

That is the fear that critics of the no salary cap have in my mind. Baseball is losing popularity to other sports and some blame falls to the number of teams that have no chance to compete for anything. Baseball may devolve into being popular in New York, Chicago, L.A. and Boston if those teams are in the playoffs every year, get the best players year in and year out, and all the others have to hope for the once in 20 years that the stars align for them to succeed. It will take a few teams to fold before anything changes or if teams like the Pirates and Royals of the world don't fold at least move to bigger cities where the TV money or initial euphoria of a new team will carry them for a few years. Sort of a a reallocation of capital by moving to a better market.

 

The one hit wonders of the world quickly fade to obscurity after their World Series or playoff runs. The Rockies aren't out signing great players now, they are shedding Fuentes and Holiday. The Marlins dropped into also rans, how long before the Rays are back to losing?

 

The problem in comparing it all to capitalism is the limited markets for each team. The Brewers can be run perfectly and generate enough interest so that every person in WI watches the games on TV but it still won't generate as much money as a Yankees team attacting only 15% of the New York market.

 

That is the reality of baseball's economics. The fear is without a revenue sharing in the long run the big markets can just bury the small markets and make them their own farm systems or minor leagues. As time goes by the gap gets larger and larger making the draft and building from within even more irrelevant to the mega markets. Their draft is the free agent crop from the farm system teams like the Brewers, etc.

 

If the league devolves further and further the Yankees revenue won't dry up as long as people are interested in seeing them play, they can beat up everyone and in an extreme go 162-0 against the teams comprised of the blind and feeble as long as they generate enough interst in seeing them destroy all competition and win the trophy because people like a winner, who cares about the competition. Heck the Harlem Globetrotters sell tickets to a fixed game they always win but people are in it for the entertainment. The WWE sells plenty of entertainment tickets. The Yankees, Red Sox, Dodgers, Cubs can all just beat up the few remaining little guys sort of like Texas playing a !AA football team before the real game versus their bitter rival Oklahoma for all the marbles.

[Pudster13]

This deal screws the crew in another way as well.

 

It means we are 100% stuck with Mike Cameron for 2009. (Yankees being only team that were interested in him)

 

The Yankees have no use for him now.

 

Yankees:

LF Nady

CF Swisher (instead of 1B)

RF Damon

DH Matsui

4th OF Melky

 

Melvin's gamble of picking up Cameron's option is probably going to cost us a chance at signing a better pitcher now.

 

Instead of signing someone like Sheets, Penny or even Garland, we are probably going to be stuck signing a pitcher along the lines of Braden Looper.(#4-5 starter type)

 

Great.

 

Merry Christmas

 

Signed

The Steinbrenners

[adambr2]

I will gladly take Braden Looper over Jon Garland.

[LouisEly]

BF.net needs to come up with a new t-shirt - "My two favorite teams are the Brewers and whomever plays the Yankees"

 

Hindsight is 20/20 but Melvin should have put language in the contract that the PTBNL was also contingent on the resigning of Sabathia or what compensation draft picks were received in return. We just got burned for trying to be competitive.

 

The most disgusting part of it is that the Yankees get a sandwich comp pick because they didn't sign their first round pick from last year. That pick should be going to the Brewers.

 

Another silver lining - the 2nd round pick turns out to be another Yo Gallardo or JJ Hardy (instead of a first round pick that turns out to be Mark Rogers or Dave Krynzel).

[adamb100]

Gotta remember that the Yankees freed up alot of payroll with:

 

Jason Giambi

Carl Pavano

Sidney Ponson

Mike Mussina

Andy Pettitte

Bobby Abreu

 

becoming FA's.

 

O well, enjoy your christmas present Yankee fans. Hope you fail to make the playoffs again.

[RyDogg66]

If the Yankees are going with an outfield of Damon, Swisher, Nady and a Middle infield of Jeter and Cano, they are going to need a lot more than Texiera to overcome that.

 

Teixiera is an upgrade but I dont see him being that much better than Abreu offensively and Nady had a career year last year so he may not be able to repeat that. Damon and Jeter are just going to get worse defensively and even at the plate.

 

IF Sabathia wins 20 games next year then he essentially replaces Mussina.

 

I see the Yankees as a 90-92 win team as of right now, which might be good enough for second in the AL East.

[JohnBriggs12]

If the Yankees are going with an outfield of Damon, Swisher, Nady and a Middle infield of Jeter and Cano, they are going to need a lot more than Texiera to overcome that.

 

Teixiera is an upgrade but I dont see him being that much better than Abreu offensively and Nady had a career year last year so he may not be able to repeat that. Damon and Jeter are just going to get worse defensively and even at the plate.

 

IF Sabathia wins 20 games next year then he essentially replaces Mussina.

 

I see the Yankees as a 90-92 win team as of right now, which might be good enough for second in the AL East.

With their rotation, defense isn't that big an issue. CC, Burnett, and Chamberlain are not exactly "pitch to contact" pitchers. Maybe Wang will be affected but that's about it.

[snyttri]

Swisher proved last season he can't play center field on a regular basis.

[logan82]

LouisEly wrote:

The most disgusting part of it is that the Yankees get a sandwich comp pick because they didn't sign their first round pick from last year. That pick should be going to the Brewers.

They get a pick where they drafted last year, not a sandwich pick. Colbyjack has a draft resource thread. Link

 

Melvin's gamble of picking up Cameron's option is probably going to cost us a chance at signing a better pitcher now.

 

We will still have to pay most of that $10M coming off from Cameron's contract right back into arby raises in 2010.

[Principessa21]

The Red Sox payroll is easily over 100 million. How is that not large? Anyway, here's an interesting take on the signing. I love that he argues for a salary floor. What I don't find fair is how there are owners that are worth millions more than Steinbrenner yet invest millions less in their team.

[truecrew]

Wow only a 2nd round pick for CC that really hurts. I cant stand the Yankees they have the 4 highest paid players in the game... but hey they have the $$ so why not

[Invader3K]

I kind of like the idea of a minimum salary "floor" to stimulate competitiveness, but I'm not sure how much it would accomplish. Would teams like the Royals and Marlins actually get into the bidding for players like Sabathia, or would they just be forced to pay huge contracts to the Jeff Suppans and Juan Pierres of baseball?

[snyttri]

The Red Sox payroll is easily over 100 million. How is that not large? Anyway, here's an interesting take on the signing. I love that he argues for a salary floor. What I don't find fair is how there are owners that are worth millions more than Steinbrenner yet invest millions less in their team. I'm glad the Brewers have spent money in recent seasons.

 

Great article, thanks. It's interesting that it says in baseball salaries account for a lower percentage of revenues than they do in the salary capped sports. Apparently some owners haven't been using the record revenues they've been receiving, including luxury tax revenue, to compete on the field.

 

MLB's revenues have been exploding since 2003 and player salaries have simply not matched this increase in revenues. In 2003, players in baseball made 63% of league revenues. In 2008, that number appears to be 52% of league revenues, or less than any of the other major professional leagues in the US, which all have salary caps.

 

For decades, wonks, wags, and wigs have told us that player salaries drive upward ticket prices and that arguments about supply and demand are theoretical constructs for an imaginary world. But in the real world, during a time in which the player's slice of the pie has dropped tremendously (a $400 million loss of the pie in 2008 alone, relative to 2003), ticket prices have continued to gone up unabated. Just as expected, savings from limiting the salaries of those mean old players have been filtered directly into the pockets of owners. Owners who cry poverty and get welfare stadiums.

[DuWayne Steurer]

Player salaries in MLB may make up a smaller % of the revenue, but I have to think the operating costs in MLB, given the 162 game schedule, more travel, and larger roster and staffs (except the NFL) are higher than the other leagues as well. Obviously it's a statement that I'd like to back up with some foundation in fact, but I don't have the luxury of time right now. I might take a look at it at some point if I get the time.

[kramnoj]

This information is almost seven years old, but it is the best source of information that I have seen regarding non-player expenses: http://www.baseballprospe...ticle.php?articleid=1325. At that time, non-player expenses ranged from $35M-$84M.