Baseball for the Thinking Fan

Login | Register | Feedback

btf_logo
You are here > Home > Baseball Newsstand > Baseball Primer Newsblog > Discussion
Baseball Primer Newsblog
— The Best News Links from the Baseball Newsstand

Monday, February 11, 2013

Juliano: Making Sense, and Cents, of an Extension for Robinson Cano

Do you Cano? Come on over! Alone! Now!...Okay!!

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 06:26 AM | 13 comment(s) Login to Bookmark
  Tags: business, yankees

Reader Comments and Retorts

Go to end of page

Statements posted here are those of our readers and do not represent the BaseballThinkFactory. Names are provided by the poster and are not verified. We ask that posters follow our submission policy. Please report any inappropriate comments.

   1. Bug Selig Posted: February 11, 2013 at 06:59 AM (#4366900)
Ultimately, if Cano is willing to sign a deal at terms comfortable to the Yankees, they should it now.


Well, no ####.
   2. Bhaakon Posted: February 11, 2013 at 07:53 AM (#4366908)
In what universe does he signed for less than 15M AAV?
   3. DCA Posted: February 11, 2013 at 08:09 AM (#4366917)
That's not issue. If he signs for 9/$225m next winter, that's $25m against the 2014 salary cap (which the Yanks are trying to get under). But sign it today and include the option, and it's 10/$240m, which only counts $24m against next year's cap.
   4. Jose Is The Most Absurd Thing on the Site Posted: February 11, 2013 at 08:14 AM (#4366918)
The Yankees probably have less need to sign a player like Cano today than any other team in baseball. No team is going to come in and blow away whatever contract they are willing to offer so the certainty is less important to them than it is to other teams.
   5. bobm Posted: February 11, 2013 at 08:26 AM (#4366925)
Apparently "William Juliano" is a pen name for Jon Heyman.
   6. snapper (history's 42nd greatest monster) Posted: February 11, 2013 at 09:59 AM (#4366961)
The only thing forfeited would be the opportunity to save approximately $1 million in AAV.

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.
   7. JJ1986 Posted: February 11, 2013 at 10:03 AM (#4366968)
The Dodgers are not yet paying $15m+ annually to a second baseman. It's one of the few positions they can say that about.
   8. BDC Posted: February 11, 2013 at 10:05 AM (#4366969)
This stuff is beginning eerily to resemble the arcana of NBA salary-cap calculations.
   9. Walt Davis Posted: February 11, 2013 at 10:51 PM (#4367563)
The Yankees probably have less need to sign a player like Cano today than any other team in baseball. No team is going to come in and blow away whatever contract they are willing to offer so the certainty is less important to them than it is to other teams.

Says a man who's never met Ned Colleti.
   10. Jack Carter, calling Beleaguered Castle Posted: February 11, 2013 at 11:00 PM (#4367566)
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.


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.

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.

Gutsy writing, right there.
   11. Bourbon Samurai Posted: February 12, 2013 at 12:20 AM (#4367607)
I disagree. They should reject comfortable terms, but jump in if they have reservations! The George Costanza way!
   12. Walt Davis Posted: February 12, 2013 at 01:17 AM (#4367624)
"Well, it's not like I was expecting Scott Boras."

{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."
   13. Nasty Nate Posted: February 12, 2013 at 10:28 AM (#4367721)
Why would you take additional risk (he could get hurt, he could have a bad year) for $1M in AAV savings?


And it's not even actual savings - it's just $1M less toward the soft cap, right?

You must be Registered and Logged In to post comments.

 

 

<< Back to main

BBTF Partner

Support BBTF

donate

Thanks to
Harry Balsagne, anti-Centaur hate crime division
for his generous support.

Bookmarks

You must be logged in to view your Bookmarks.

Hot Topics

NewsblogOT - Politics - February 2015: At This Party, You’d Better Keep It Down. Arizona Sheriff Known for Toughness Is Allowing Inmates to Watch the Super Bowl
(3244 - 8:14am, Feb 27)
Last: bobm

NewsblogPrimer Dugout (and link of the day) 2-26-2015
(11 - 8:02am, Feb 27)
Last: bobm

NewsblogJose Molina joins the Cardinals as a guest instructor
(9 - 8:01am, Feb 27)
Last: Misirlou was a Buddhist prodigy

NewsblogRed Sox land Cuban prospect Moncada
(209 - 8:00am, Feb 27)
Last: Commissioner Bud Black Beltre Hillman

NewsblogJohan Santana gets another chance, signs with Blue Jays
(2 - 7:59am, Feb 27)
Last: Fernigal McGunnigle has become a merry hat

NewsblogLindbergh: Has Baseball’s Minors-to-Majors Jump Really Gotten Harder for Hitters?
(7 - 7:52am, Feb 27)
Last: bookbook

NewsblogBlue Jays outfielder Michael Saunders injured, out until all-star break
(25 - 7:21am, Feb 27)
Last: What's the realistic upside, RMc?

NewsblogEx-big leaguer (Jim) King, 82, dies
(4 - 7:18am, Feb 27)
Last: What's the realistic upside, RMc?

NewsblogYankees confident they can avoid paying A-Rod milestone bonuses - CBSSports.com
(39 - 7:04am, Feb 27)
Last: You Know Nothing JT Snow (YR)

NewsblogThe Cuba Diaries: The Last Day of the Caribbean Derek Jeter, Carlos Tabares
(1 - 6:27am, Feb 27)
Last: What's the realistic upside, RMc?

NewsblogOT: Monthly NBA Thread - February 2015
(1165 - 4:52am, Feb 27)
Last: Win Big Stein's Money

NewsblogDavid Ortiz Goes Off In Epic, Expletive-Filled Rant On Speed of Game Changes - Extra Bases - Boston.com
(48 - 2:26am, Feb 27)
Last: Bunny Vincennes

NewsblogHedges shrugs off rankings, focused on Majors | padres.com
(3 - 12:55am, Feb 27)
Last: Sleepy supports unauthorized rambling

NewsblogReport: Josh Hamilton meeting with MLB about 'disciplinary issue'
(127 - 12:51am, Feb 27)
Last: SuperGrover

NewsblogBraves insist it's a 'remodeling,' not a 'rebuilding'
(14 - 11:35pm, Feb 26)
Last: Howie Menckel

Page rendered in 0.2084 seconds
48 querie(s) executed