A smart but uncharacteristic move by Mr. Cashman and the Yankee front-office, who typically do not sign their own players to extended deals before they hit free-agency.

I do feel this is a very smart move by New York, Cano can certainly field the position competently and you can count the number of second-basemen who can hit at his level on one hand, if not one thumb.

I asked this in the Dugout, but doesn't 4/$30 million seem overpriced when Cano's arbitration bid was only $4.5 million?

All else being equal, arbitration awards go up as the player nears free agency. So even if Cano disappoints, his salary will go up in arbitration over the next few years. If it was his last year of arb, he could probably get $10M or so this season.

A smart but uncharacteristic move by Mr. Cashman and the Yankee front-office, who typically do not sign their own players to extended deals before they hit free-agency.

I agree, and I wonder whether the absence of Georgie from day-to-day has anything to do with this. I thought I remembered that he was the one who felt most strongly about not buying out pre-FA years.

YES!!! Lock that sucker up and build up the good will! Awesome.

It sure is going to look like a lousy deal when he hits .270/.300/.420 in year four ;-)

It sure is going to look like a lousy deal when he hits .270/.300/.420 in year four ;-)

The Player Hater's Ball isn't until October but I commend you for lobbying so strongly for your invitation.

HATEHATEHATE

The Player Hater's Ball isn't until October but I commend you for lobbying so strongly for your invitation.

HATEHATEHATE

Nothing wrong with being the new Carlos Baerga - heck, was an All-Star well into his mid 20s.

Hank Steinbrenner just announced that the Yanks are pulling out of a Cano deal.

Hal Steinbrenner just announced talks are back on and that the Yankees are in the lead on a deal getting done.

Nothing wrong with being the new Carlos Baerga - heck, was an All-Star well into his mid 20s.

Interesting comp. Pretty spot on, the only difference I can see is that Cano has seen improvements to his walk rate in the league while Baerga showed a decline. IIRC, Baerga's defense wasn't considered an asset at second.

Cano also has 5 HOFer in his comp list, Nomar, Kendall and Mauer, and two guys who were essentially nobodies. If he ever hits out of the gate instead of waiting until June, he could have some Nomar type seasons in his future. Obviously, he will not fade like Baerga because I don't want him to.

At first I read "Cano" as "Cairo." That would've been pretty funny.

At first I read "Cano" as "Cairo." That would've been pretty funny.


Except that Cairo is in the Mariners' organization. And under those circumstances, it is not entirely out of the realm of possibility

These kinds of deals carry financial penalites for teams over the luxury tax. Let's say Cano would win his arb case and get the 4.5M figure mentioned up thread. The Yanks' tax hit is 40% of 4.5M or 1.8M.

Now that he will be on a long term deal, his luxury tax number becomes the AAV or 7.5M. As a result the 2008 tax will be 3M instead of 1.8M even if Cano's 2008 salary is exactly the same.

A millon here and there, and the next thing you'll know you need a tax payer funded new stadium.

Isn't it the option year (years?) that really matters here? There's really no point in buying out arbitration years, as the Yankees get those anyway. It's the free agent year option year (or years) that really gives the Yankees something of value. Of course, we have no idea what that option is, so it's pretty hard to evaluate this potential deal, right?

These kinds of deals carry financial penalites for teams over the luxury tax. Let's say Cano would win his arb case and get the 4.5M figure mentioned up thread. The Yanks' tax hit is 40% of 4.5M or 1.8M.

That's not the right way to think about it in my opinion. The Yankees don't pay luxury tax on their entire payroll. They pay tax on the portion of the luxury tax that is above the cap. For example, let's say the cap is 150 million and the Yanks' payroll is 225M. If the tax is 40 percent, the Yanks would pay (.4*(225-150)) 30 million in tax. The way you are describing it, the Yanks would pay 90 million (.4*225).

That's not the right way to think about it in my opinion. The Yankees don't pay luxury tax on their entire payroll. They pay tax on the portion of the luxury tax that is above the cap. For example, let's say the cap is 150 million and the Yanks' payroll is 225M. If the tax is 40 percent, the Yanks would pay (.4*(225-150)) 30 million in tax. The way you are describing it, the Yanks would pay 90 million (.4*225).

That's right. For every extra dollar the Yankee spend after the cap, they pay the tax. But people use that fact to apply the tax to every new contract. First it was AROD, then Rivera, then Posada, now Cano. Giambi, Abreu, Jeter, Pettitte... They aren't all 100% responsible. The best way to look at it is to determine each player's % of the whole payroll, then add that same % of their total tax to the player's salary. I imagine that would add only a couple hundred grand to Cano .

That's not the right way to think about it in my opinion.

I don't see why not. This year for luxury tax purposes Cano's salary can count as $3.875 million (Arb. midpoint) or as $7.5 million. Either way, the entire amount is over the cap. It's legitimately an extra expense for this year, in the amount that philly laid out.

Of course, this is a moot point unless the Yankees actually get under the salary cap during the next four years, and does anyone really expect that to happen?

But people use that fact to apply the tax to every new contract. First it was AROD, then Rivera, then Posada, now Cano. Giambi, Abreu, Jeter, Pettitte...

This is a totally separate issue. Cano is on the Yankees next year no matter what, and if the Yankees choose to give him a contract to take him through arbitration rather than go year-by-year, they are increasing the short-term expense because of the way AAV is figured for luxury tax purposes, period. It's something they have to take into consideration if they expect to get back under the cap in the near future.

Let's not forget that in 2005 the Yankees first tried to install the execrable Tony Womack at 2B rather than give Cano the job. It was only when the Yankees realized in-season that Tony Womack was, well, Tony Womack, that they decided to check out the rookie.

Of course, the comedy didn't end there: when Cano took over the 2B job, Torre moved Womack to... wait for it... left field.

Of course, this is a moot point unless the Yankees actually get under the salary cap during the next four years, and does anyone really expect that to happen?

I don't expect it to happen, but I wouldn't be shocked. Here are cap numbers through the end of the current CBA: Thresholds reset to $155 million in 2008, $162 million in 2009, $170 million in 2010 and $178 million in 2011.

Right now, the Yankees are committed to around $112 million for 2009 (depending on how 2008 option buyouts are calculated). Of course that will be close to $120 million with the Cano deal and add another million or two for whatever pre-arb players will be on the team.

Whether they go from under $125 million to $162 million will largely depend on if they get Johann, what free agents will hit the market next year, and possibly what expensive veterans teams may want to trade to the Yankees.

BTW,Cot'shas detailed information on the new Alex contract that I hadn't seen before. I find it interesting that Alex's highest paid years are 2009 and 2010, years that come after a lot of current wasted payroll dollars are gone and also years in which the Yankees expect (and/or hope) to get great value from pre-arb pitchers. Smart payroll planning that I wasn't aware of.