Perhaps the most compelling reason to re-sign Cano now is the luxury tax implications. Because Cano is playing under a club option in 2013, the $15 million he is owed is applied straight up to this year’s payroll calculation. However, if that amount was rolled into a long-term extension, the Yankees could use the extra year and lower salary to reduce the average annual value (AAV) of Cano’s new contract.
...It’s important to note that if the Yankees don’t sign Cano to an extension now, that doesn’t mean they can’t re-sign him in the offseason. The only thing forfeited would be the opportunity to save approximately $1 million in AAV. Hal Steinbrenner knows his economic situation and intentions better than anyone, so if this savings isn’t worth the risk that Cano will suffer an injury or drastic decline in 2013, there’s no compelling reason to execute an extension now, unless, of course, the Yankees fear that the market for Cano would break through the Arod barrier. Then again, with Scott Boras as his agent, if that is a real possibility, chances are Cano wouldn’t even consider forgoing free agency.
Ultimately, if Cano is willing to sign a deal at terms comfortable to the Yankees, they should it now. If the Bronx Bombers have any reservations, however, they should wait until the off season. Although that creates more uncertainty, it also gives the team more time to figure out its priorities. Is it winning, maximizing profit, or some combination of both? The answer to that question could decide whether Cano is wearing pinstripes in 2014.
Repoz
Posted: February 11, 2013 at 07:26 AM |
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1. Double-Spin Mechanic Posted: February 11, 2013 at 07:59 AM (#4366900)Well, no ####.
Why would you take additional risk (he could get hurt, he could have a bad year) for $1M in AAV savings?
The only reason to extend Cano now is if he offers a reasonable deal, say 7/160.
Says a man who's never met Ned Colleti.
Even if Cano racks up 10 wins in 2013, if he's 'through the Arod barrier' the Spankees should cheerfully forgo the opportunity to sign him.
Gutsy writing, right there.
{Boras, jumping into scene): "NOBODY EXPECTS SCOTT BORAS."
"Oh no!"
"My key weapon is surprise. Surprise and fear. My two main weapons are surprise and fear and an almost fanatical devotion to my clients. My three main weapons are ..."
"My God! What do you want?"
"8 Years, $200 M."
"No."
"No? No? This is my "assistant" Mr. Fang. Mr. Fang, begin the torture."
"Torture?"
"Yes Mr. Cashman. If you don't give me what I want, then Mr. Fang will torment you with...."
{DUN DUN DUN}
"... the comfortable terms."
And it's not even actual savings - it's just $1M less toward the soft cap, right?
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