Archive for Yankees

A renewal of vows between Ichiro Suzuki and the Yankees is beginning to take on an air of inevitability. I don’t know what the Yankees thought they were getting when they first brought Ichiro in, but he had good success down the stretch, and he expressed a willingness to re-sign. The Yankees need an outfielder, and they’re trying to avoid multi-year contracts. Weeks ago, Ichiro’s agent all but declared that Ichiro just wanted to stay where he was, and now Ken Rosenthal reports that a contract agreement is just about reached. Barring a complete surprise, Ichiro will play for the Yankees during the 2013 season. Which, of course, just a few months ago, would’ve been a complete surprise. You’re not even aware of how quickly the things around you are changing. Ichiro is on the Yankees. Michael Young is on the Phillies. Kevin Youkilis is on the Yankees too. Consider this reality.

Had Ichiro performed poorly with New York, it stands to reason he wouldn’t be re-signing, because it stands to reason they wouldn’t want him. It would’ve been fascinating to see if a market would’ve developed had Ichiro struggled. He didn’t, though, batting well north of .300 with the Yankees, so of course they like him on a small contract. They’ll add a right-handed outfielder and then they’ll see how that goes come summertime. Ichiro’s stretch run added a good amount of value to his name, after a year and a half of hard times in Seattle.

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Before the 2007 season, Major League Baseball Advanced Media partnered with StubHub as the official secondary ticket marketplace for Major League Baseball. All 30 MLB teams participated. Anyone could list MLB game tickets for sale on StubHub, at any price. StubHub charged buyers a handling fee and a delivery fee, often totaling more than $10, regardless of the selling price. The “delivery fee” was the key to the deal, as it allowed buyers to print the tickets at home. Gone were the days of sellers tossing tickets out a window to buyers at midnight. Sellers also paid a fee to StubHub, charged as a percentage of the sale price. StubHub shared about half its fees with MLBAM. In 2011, that amounted to more than $60 million. MBLAM then funneled a portion of those funds to the 30 teams.

Fans rejoiced. During the 2011 season, more than 8 million MLB tickets sold on StubHub, up from 6 million in 2010.

But many teams weren’t as thrilled. The Yankees, in particular, were a vocal critic of StubHub’s pricing policies. With no price floor, Yankees tickets were often available on StubHub for less than $5, a price significantly below the lowest ticket price available at the box office or on Yankees.com.  Critics countered that Yankees ticket prices were too high, creating a fertile market for very cheap tickets on the secondary market. But even teams with lower ticket prices lost sales to StubHub.

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In at least one way, Kevin Youkilis is a perfect fit for the Yankees. They’re trying to stay under the luxury tax threshold in 2014 in order to reset their tax rate and there aren’t many other third basemen willing to take one-year deals on the market. Beats trying to coax Chipper Jones out of retirement, probably, and Youkilis has retained enough of his skill to be an asset, even coming off his worst year.

In at least one other way, Youkilis is less than an ideal fit.

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This was written in December, but with recent stories surrounding Rodriguez, we’ve pushed it back to the front page for reference.

After his monster MVP season in 2007, Alex Rodriguez signed a new 10-year deal with the Yankees for $275 million, plus an additional $30 million in marketing incentives linked to home-run milestones. So far, the Yankees have paid Rodriguez $161 million, leaving $114 million on the contract. That breaks down to $28 million for 2013, $25 million for 2014, $21 million for 2015 and $20 million in 2016 and 2017.

This week, we learned A-Rod will undergo left-hip surgery surgery in January to repair a torn labrum, a bone impingement and a cyst. The surgery is being delayed to give Rodriguez time for physical therapy to strengthen the hip. Recovery time is estimated at four to six months, which means a return to the Yankees lineup in June — at the earliest.

But what if A-Rod’s recovery doesn’t go as planned? What if the surgery isn’t successful? What if A-Rod doesn’t recuperate as quickly as expected? What if A-Rod doesn’t play in 2013? What if his career is over?

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In October, Alex Rodriguez was terrible when he did play, and he didn’t play all that much because of said terribleness. As Jeff noted during the ALCS, Rodriguez looked noticeably diminished after he came off the disabled list, especially against right-handers, and the contact issues suggested that he very well might not be 100% healthy.

Well, no more need to speculate – Joel Sherman reported this morning that A-Rod had surgery on his left hip and will be sidelined for 3-6 months. The end of that timeline would put him on track to return to the field in June, and given the lingering nature of hip problems, it’s probably not in the Yankees best interests to assume that he’s going to be back to 100% any time in the near future. In reality, Rodriguez is now a 37-year-old who has had surgery on both hips, and his body seems to be entering the stage where he’s unlikely to be able to be a full-time player going forward.

That leaves Brian Cashman with a role player who is due $114 million over the next five years. The only winner in this might be Ryan Howard, who is no longer the owner of the worst contract in baseball.

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Russell Martin was a Yankee, and then Russell Martin became a free agent. Russell Martin is a catcher, and once he became a free agent, the Yankees were in need of a catcher. Russell Martin is pretty good, and he wasn’t looking to break the bank with a contract. Russell Martin is 29. Martin seemed like an excellent candidate to re-sign, and indeed, there were indications that the Yankees were making Martin a priority. Then Thursday, Martin signed a two-year deal with the Pirates. It’s worth just $17 million, but the Yankees reportedly weren’t interested in matching that price. While the Pirates had been mentioned as a serious suitor in recent days, it’s an undeniable surprise to see the Yankees essentially get priced out for something they could really use.

The Yankees, as has been mentioned several times over, are trying to avoid paying luxury-tax penalties in 2014, meaning they’ve placed a particular emphasis on one-year contracts. In that light, staying away from Martin makes some sense, but the Yankees still need a catcher, and guys like A.J. Pierzynski and Mike Napoli are unlikely to sign for one season. Surely the Yankees will figure something out, and this isn’t going to make or break their whole next year, but from the outside, this is a little perplexing.

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A couple of minor transactions have floated by mostly un-noticed on the wires recently, and probably for good reason. Mickey Storey was claimed by the Yankees from the Astros, and Cory Burns was traded to the Rangers from the Padres for a player to be named someday. Neither of these relievers cost much, nor will they end up closing for their new teams. They’re mostly just flotsam pieces of spaghetti to fling at the wall. There’s a link between these two relievers, and it’s a thread that will run through most fungible, cheaply acquired players in baseball — neither reliever has a fastball.

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Early Sunday morning, Twitter was abuzz with news that the Dodgers and Fox Sports West had agreed to a 25-year broadcast deal valued between $6 billion and $7 billion. By Sunday afternoon, Bill Shaikin of the Los Angeles Times had confirmed the outline of the deal, but cautioned that the Dodgers and Fox were still negotiating, with a November 30 deadline looming.

As I explained last week in this post, the parties’ existing agreement gave Fox an exclusive, 45-day window in which to negotiate a new deal to govern the 2014 season and beyond. Hence, the November 30 deadline. If an agreement isn’t inked by Friday, the Dodgers must submit a final offer to Fox by December 7. Fox then has 30 days to accept or reject the offer. If Fox rejects the offer, the Dodgers are free to negotiate with whomever they want.

However the negotiations play out, it’s clear now that the Dodgers’ local TV revenue is about to enter the stratosphere. A 25-year deal worth between $6 billion and $7 billion would net the Dodgers between $240 million and $280 million per year. Per year. That’s more than any team has ever spent on player salaries in a single season — even the Yankees. And it’s nearly double the amount of local TV revenue pulled in annually by the team with the second-most lucrative deal — the other Los Angeles team (the Angels) — which entered into a 17-year deal with Fox Sports West worth $2.5 billion.

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Earlier Tuesday, there was a rumor floating around Twitter that B.J. Upton had signed a long-term contract with the Phillies. That turned out to be fake, or alternatively sent to the present from the presently unknowable future. There was also a rumor floating around Twitter that Hiroki Kuroda had signed a short-term contract with the Yankees. That turned out to be real, as Kuroda has re-upped for a year and $15 million, with another near-million in incentives.

Last January, Kuroda signed with the Yankees for a year and $10 million. He pitched well, and after the season the Yankees extended to him one of those qualifying offers worth $13.3 million. Kuroda declined it, but there was some thought that he could accept it, suggesting that the terms weren’t far off from something he’d find agreeable. Indeed, the Yankees have re-signed Kuroda for the qualifying offer, and just a little more. Or a lot more, depending on how you feel about a couple million dollars.

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News Corporation is reportedly set to buy a 49 percent stake in the YES Network and it may be a hedge against losing its local TV contract with the Dodgers.

The YES Network broadcasts Yankee games and a full slate of Yankees-related programming. It is also the broadcast home of the Brooklyn Nets of the NBA. YES is considered the most successful and profitable regional sports network in the country.

Over the weekend, the New York Times reported that News Corp. is close to acquiring a 49 percent share of YES, which has been valued for purposes of the transaction at $3 billion. A 49 percent share, then, will cost News Corp. $1.47 billion. Until now, shares in YES were divided among the Yankees (34 percent), investment banks Goldman Sachs and Provident Equity (40 percent) and a group of former Nets owners (26 percent). The deal includes an option for News Corp. to increase its stake to 80 percent within five years.

News Corp. is the parent company of Fox Sports, which owns 19 regional sports networks around the country. One of those regional sports networks is Fox Sports West, the current broadcast partner to both the Angels and the Dodgers. Last December, the Angels hit gold when they signed a new, 17-year contract with Fox Sports West valued at more than $2.5 billion. That deal gave the Angels tremendous financial flexibility when approaching the free-agent market. The result? A  10-year/$240 million contract for Albert Pujols and a 5-year/$77.5 million contract for CJ Wilson.

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