7 Yrs @ $142M

[mikemc]

Ellsbury to the Yankees. Yankees have no choice but to over pay for top FA's.

[Rock]

Might very well be the Yankees Carl Crawford signing. Thats way too much money, and far too long a deal for steals. What's Cano worth now? Who pitches for that team? Losing another couple of draft picks. in an already baron system is not the answer. In other words, as a Sox fan, I LOVE the deal for NY.

[mikemc]

As a Yankee fan, I hate it. Why throw that kind of money at Ellsbury but then take a stand of no more than $175M for Cano? Over paid for Mccann too.

[Rock]

I don't know a single Red Sox fan who would have been happy today if the team had signed Ells to the contract the Yankees just did. And how do you rebuild your system when you keep losing your draft picks and, now, the salary slot that comes with them? Trouble.

[diehardfriar]

I think they overpaid for Ellsbury but as a Yankee fan I could care less. I'm not paying the bill and the addition of a .300/50SB leadoff hitter makes me happy. The deal will expire roughly one month after Jacoby's 37th birthday assuming they exercise the club buyout. If they don't exercise the buyout for the 8th year it's safe to say the contract was a success. IMO the Yankees and other teams are trying to stay clear of signing players to long term deals past their 37-38th birthdays more than just staying away from long term deals all together.

Honestly I think the Yankees had two choices here, 1: give Cano(a player linked to Biogenesis) 8-9 years at well over 200 million or give Ellsbury what they gave him. I think Seattle was gonna make a move on Ellsbury and were prepared to offer around 130-140 which would have left the Yankees with either Cano or nothing. I really think they have ZERO interest in Cano at his asking price so opted for the #2 star on the market while saving 60-80 million. Yes they overpaid but it's the nature of the beast.

Just an FYI for everyone: the Yankees netted 200 million last year after all costs and I heard that the rumored goal of getting under 189 was all bull crap. They have no realistic aspirations of getting under the luxury tax and are rumored to be going all in. At the end of the day the luxury tax fines are peanuts and they make more money with the more star power they have and the deeper they go in October.

Kuroda is close to signing a one year 14 million deal and don't be surprised if Tanaka and Cano follow shortly....

order in the AL East will be restored in 2014

pitchers and catchers report in 9 weeks.......

[diehardfriar]

Another thing, I think the Yankees are really intrigued with the fact that Jacoby hit 32HR(in Fenway as a lefty) is 2011. Something tells me that wasn't all luck and they will help him tap into that power as a Yankee. I wouldn't be shocked if he end up becoming a .300/25/100/100 guy with 40-50 bags.

[diehardfriar]

Dec 4, 2013 4:47:16 GMT -5 mikemc said:

As a Yankee fan, I hate it. Why throw that kind of money at Ellsbury but then take a stand of no more than $175M for Cano? Over paid for Mccann too.

McCann was a great deal, team friendly to boot. You're not going to net a top 2-3 catcher in the prime of his career any cheaper than 17 million a year. It's not like they gave him length either with a 5 year deal.

[Rock]

All that is fine but I don't recall a championship Yankee team built on expensive free agents and that's what you'll need to happen by surrendering such high draft picks (and the salary slots). Sure, they can afford the big, fat, aged player contracts but can they afford the compete absence of a productive farm system? Ya know, the system that gave them Jeter, Posada, Mo, Bernie et al and the trade collateral to acquire key prices along the way. Good luck with that.

[wtm97]

Interesting piece here:

With Ticket Revenue Down, Yankees Must Keep Spending
A Revealing Look at Their Ticket Revenue Shows the Importance of Making the Playoffs

When the Yankees announced their $85 million signing of catcher Brian McCann earlier this week, owner Hal Steinbrenner cited the team's "singular and unwavering desire" to play deep into October. That desire likely will be mentioned again when the Yankees announce their seven-year, $153 million deal with ex-Red Sox outfielder Jacoby Ellsbury in the coming days.

But a look at the Yankees' finances reveals that a lust for trophies isn't the only thing fueling this free-agent splurge. When the Yankees fail to make the playoffs, as they did in 2013, their revenues plummet.

Proceeds from ticket sales and stadium suite licenses alone totaled $295 million through Sept. 30 this year, according to public records reviewed by The Wall Street Journal. That is down from $353 million in 2012, $377 million in 2011 and $384 million in 2010, the records show.

The figures appeared on financial statements the Yankees are required to file with the city to demonstrate their ability to make payments on the bonds used in the construction of Yankee Stadium. Attendance represents just one of the Yankees' revenue streams, but it highlights the enormity of the financial incentives for the team to make the playoffs.

People with knowledge of the team's finances said the drop-off from 2012 is almost entirely a result of the fact that they missed the playoffs for the first time since 2008.

Had the Yankees failed to reach the playoffs in 2012, their ticket and suite revenues would have been closer to $300 million rather than $353 million, the people said. Similarly, in 2010 and 2011, postseason games accounted for $59 million and $58 million of all such revenues, respectively.

In other words, a Yankees team that wins 93 games and makes the playoffs brings in about 15% more ticket and suite revenue than a Yankees team that wins 88 games and misses the playoffs. And that is to say nothing of the boost in merchandise and concession sales and next-year ticket sales.

"What this clearly shows is that the Yankees' whole financial equation is built around winning," said Vince Gennaro, author of "Diamond Dollars: The Economics of Winning in Baseball" and a consultant to major-league teams. "If you take that away, they become mere mortals from a financial standpoint."

Whether the additions of McCann and Ellsbury, whose deal was still being completed Wednesday, will be enough to get back to October remains to be seen. They remain in talks with Robinson Cano, and they need to shore up their pitching.

But the Yankees were an old and injury-battered team in 2013 and still managed to win 85 games. According to FanGraphs, Ellsbury and McCann had a combined value of 8.5 wins more than the expected value of a Triple-A fill-in this year. If Cano returns and CC Sabathia and Mark Teixeira have bounce-back seasons, it could add up to a return to the playoffs.

If that happens, lavishing a combined $238 million on Ellsbury and McCann and perhaps $170 million or more on Cano will be well worth it.

"The financial payoff at this juncture, coming off a missed postseason, is way more than any other team stands to gain by improving themselves by three, four, five, six wins—whatever the number might be," Gennaro said. "Some people will say, 'Well, is it an overpay?' With the Yankees, that's the wrong question. The second-biggest problem the Yankees could have is overpaying for a free agent. The biggest problem is not getting the free agent they need to get back to the postseason and make a deep run into it."

If all had gone to plan, the Yankees wouldn't have needed to spend much on free agents at all. Steinbrenner believes the team shouldn't require an exorbitant payroll to win championships. And he is right: A better farm system would make such an outlay less of a necessity.

But the Yankees' farm system took a step backward in 2013. There are no top prospects primed to reinvigorate the franchise. And so they faced a choice: Remain conservative, don't bet too much on 2014 and adopt a more patient, long-term mind-set. Or go out and do whatever it takes to assemble a legitimate contender for 2014.

Door No. 1 would have made it easier to bring the payroll under the $189 million luxury tax threshold in 2014. But the Yankees still believe they can do so, even with McCann, Ellsbury, Cano and perhaps a free-agent starting pitcher on board.

And if they don't? Their bottom line will take a hit. But considering how much their revenues plunge when they miss the playoffs, it beats the alternative.

"I know there's people out there who have said, 'Well, the Yankees just have this money machine that just keeps printing money,'" Gennaro said. "Let me tell you: If the Yankees were an 85-win team or an 83-win team for three or four years in a row, they would suffer financially orders of magnitude more than any other franchise."

online.wsj.com/news/articles/SB10001424052702303997604579238550215265832

[diehardfriar]

Dec 5, 2013 8:58:01 GMT -5 Rock said:

All that is fine but I don't recall a championship Yankee team built on expensive free agents and that's what you'll need to happen by surrendering such high draft picks (and the salary slots). Sure, they can afford the big, fat, aged player contracts but can they afford the compete absence of a productive farm system? Ya know, the system that gave them Jeter, Posada, Mo, Bernie et al and the trade collateral to acquire key prices along the way. Good luck with that.

what do you call 2009 right after they signed Tex, CC, and Burnett? also they are receiving compensation picks right back: 1 with Granderson and possibly 2 with Cano

[pcdad]

Fair has nothing to with pricing decisions. If the demand is high enough you increase pricing to a level which maintains supply.

Rock, does your philosophy apply to free-agent signings? You maintain the Yankees overpaid for Ells... (I agree).

All that is fine but I don't recall a championship Yankee team built on expensive free agents and that's what you'll need to happen by surrendering such high draft picks (and the salary slots). Sure, they can afford the big, fat, aged player contracts but can they afford the compete absence of a productive farm system? Ya know, the system that gave them Jeter, Posada, Mo, Bernie et al and the trade collateral to acquire key prices along the way. Good luck with that.
what do you call 2009 right after they signed Tex, CC, and Burnett? also they are receiving compensation picks right back: 1 with Granderson and possibly 2 with Cano

Rock, you are right as the Gene Michael, Buck Yankees were built and home grown, hence the four players of Mo, Derek, Jorge, Bernie, the 80's free agent Yankees didn't win the WS.

Why do I think that Yankee fans are sterotyped by Sox fans? There were mostly unsuccessful seasons of futility for Yankee fans from 1965 - 1975 (When were routed by Big Red Machine ('76?). ok, '77 and '78, then the 80's, until the strike shortened season, Mattingly's last season, then the success of the farm team players with additions in '96, '98,'99,'00 ...-'01 was a weird series of events to lose. '04 was sweet revenge for Sox fans for everything from Babe Ruth, through the '40's, through the '01 seasons.

But why do Red Sox fans eat their young. Think of the treatment you give to your players once they are gone, from the '04 team, Damon, Manny is just being Manny until he's elsewhere Then Pedro, Clemens, Boggs (I'm not a fan of these last 3), Mo Vaughn... Sox fans most recently castigated Crawford, Gonzalez and Beckett - maybe deserved. I think of The Bird Mark Fidrych, was he unmericully booed when he lost the touch? maybe Nomar deserved his fate with the Sox fans, but man you killed a HOF level player (Buckner)for an error in '86 and Bob Stanley too. (Did the fans turn on Jim Rice and Dwight Evans too? Did they dump on Fred Lynn? Carlton Fisk and Luis Tiant too? you grew tired of Yaz, Yaz! You excoriated Ted Williams, Ted Williams! because he would only swing at strikes, because he didn't doff his cap during his final hit on his HR trot in 1960! Not sure how the fans felt about his sitting out the final three games of the season at Yankee Stadium. Maybe it was his way of getting back at Sox fans or he simply wanted to retire on a high note. Now that Ells is gone, he joins the list? The guy, injuries and all helped you win the WS...

I know fans grow weary of their players antics but it seems that Sox fans are really rough on their own... imagine if you had gotten Arod!
...

Anyway, maybe you can tell me who the superfan is that sits behind Home plate.. usually sitting with folded arms with his blond hair parted nearly down the middle 1970's style. He usually stands up and cheers when Arod is drilled (who can blame him for that?) Who's the guy that sits toward the 3rd base side of Home plate listening to the games on his headphones? He seems like the greatest Sox Fan of all time - always in attendance and listening to the play by play.

[Rock]

1. I don't have a philosophy about price. I have the reality of markets. As for free agent signings it also is always about demand. If there were three prime free agent CF's in this years class or if the big market teams were set at that position Ells would have been paid much less.

2. Agreed, Yanks would not likely have won without free agents BUT it was not the cornerstone of their philosophy (as it appears now to be) and, more importantly, the new draft compensation rules are much, much more punitive for teams building through free agency.

3. I think you are overstating and misunderstanding how Red Sox fans "eat their young". Pre-2004 each former player "eaten" by Red Sox fans was an extension of the fans frustration over failing (often in spectacular fashion) to win a WS since 1918. Yankee fans would have acted the same way. In fact, I'm sure the Yankees glorious 80's dry-spell yielded similar rebukes of failed players. You could name them easily, quickly, but I can't imagine the names Jesse Barfield, Steve Kemp or Ed Whitson etc were spoken without profanity by NY fans back then.

As for Sox post-2004, I really think "eating their young", which began with Nomar and peeked with Manny, was s symptom of sports radio. I know a ton of Sox fans (none callers to 'EEI or 98.5) who treat every departure logically. I don't know a single one who will rag on Ells. However, the anger some have expressed with departed players stems from them leaving Boston for NY: Boggs, Clemens, Damon and now Ells; you, as a Yankee fan, get to scold us Red Sox fans about "eating their young" when the next Jeter, or Bernie, or Mattingly leaves NY to sign with Boston.

[pcdad]

Rock,

Thank you for the thoughful reply.

I do not denigrate Boston Red Sox fans. I have family members from NE who are among them. (Some of my best friends are Red Sox fans...ha, ha). In fact I acknowledged the Sox triumphant 2004 season (where all revenge toward the Yankees was exacted after coming back from an 0-3 deficit and going on to win their first WS since 1918).

Hey, I modelled my batting stance after Yaz, not Mickey Mantle or Bobby Murcer. (Not a good decision on my part).

I spent some days at Cominsky Park and Wrigley Field as a boy when my family lived in Chicago, so you don't have to remind me of WS droughts or being a fan of losing teams.

you, as a Yankee fan, get to scold us Red Sox fans about "eating their young" when the next Jeter, or Bernie, or Mattingly leaves NY to sign with Boston.

Not scolding at all. I was asking the legimate question of why Red Sox fans turn on their ex-players. Fans called Clemens a fat, donut eating loser before he left for Toronto or wherever he went. Is that attributable to losing since 1918? A 1946 one game playoff? His 1986 performance in the WS? You are suggesting only those players that go to the Yankees get such treatment and the rest are fondly remembered? I cannot recall whether 1975 WS hero Carlton Fisk left town on good terms with the fans or not.

Frustration over losing and WEII Talk radio separating the eras pre and post 2004 - perhaps you are correct. I do not listen to much sport radio in NYC at all. Callers with little perspective and demented arguments - its mostly entertainment. (Likewise, I do not watch much pregame football shows, or sports talk show and commentary) Heck Reggie sold many Daily News back in the day because he had the outrageous contract of $3million for 5 years. They finally won two WS with him taking the brunt of the media attention - good and mostly bad. Certainly, it was the team, the pitching that won and he was only a component. But he was the Arod of his day. The Soap opera of the Boss Steinbrenner years and his bluster and his abuse of players, managers, coaches, and Dave Winfield is practically criminal. Oh that's right he was a convicted criminal - Billy Martin reminded us.

I was trying to recall Ed Whitson's name -- yeah good example of those glorious free agency days.

Jeter has been handled with kid gloves his whole career, nearly nauseating, even as he beloved. (I saw Mickey Mantle stay on a few seasons too long as the rerquest of ownership and move over to first base so he could stay in the lineup (no DH), but Jeter insists on remaining SS when he can't move laterally, not moving to 3rd/first/LF?) Donnie's back gave out young. And the Yankees kept Bernie well past his effictivness in center fireld, not quite like watching Willie Mays play for the Mets, but it reminded me of it. Seems like Cano is playing the same card s he's talking to Seattle to up the ante in NY. (We shall see soon enough how that all plays out). If only the Sox could have retained Arod, Red Sox fans could have had their most appetizing player to devour as one of their own rather than as a member of the Eviliest of Empires.

In parting let me leave you w/ these remembrances, the Yankee fans have booed Mickey Mantle, ( and Tino M for replacing Donnie Mattingly) maybe more than the Red Sox fans booed Ted Williams. Always easy to boo the villians, but the greats? One game I sat near some boor yelling out to Kurt Gibson, playing for the Tigers, every time he stepped onto the field that "he was no effin Mickey Mantle". Sort of hoped Kurt would have climbed into the box seats and shut him up.

[mikemc]

Jeter, Posada, Mo and Bernie had great supporting role players who had big if not bigger moments in the post season than the cornerstones. Guys like S. Brosius, A. Boone, P. O'Neil, etc.

How many teams have been able to have as much success as the Yankees did with Jeter,Posada, Mo, Bernie from the farm system? Big Red Machine? Oakland A's of the 70's? Orioles of the 70's? If I recall correctly, they all were not built solely on homegrown talent.
What the Yankees got out of those four will be hard pressed for any other 4 from another teams farm system to match. Even the Yankees.

[Rock]

Dec 5, 2013 16:11:26 GMT -5 mikemc said:

Jeter, Posada, Mo and Bernie had great supporting role players who had big if not bigger moments in the post season than the cornerstones. Guys like S. Brosius, A. Boone, P. O'Neil, etc.

How many teams have been able to have as much success as the Yankees did with Jeter,Posada, Mo, Bernie from the farm system? Big Red Machine? Oakland A's of the 70's? Orioles of the 70's? If I recall correctly, they all were not built solely on homegrown talent.
What the Yankees got out of those four will be hard pressed for any other 4 from another teams farm system to match. Even the Yankees.

Yanks did an extraordinary job with drafting and developing players in their championship runs. No doubt. Again, I ask, how is that formula going to play out when they will start - likely - a lineup of one, maybe two homegrown players and have little in the farm system or in draft capital to change that very soon. Fair question, I think.

dad

Good point on Clemens hitting Toronto first. I think he's a pretty obvious and special case. Guys an a-hole, underachieved in Boston in final years (albeit still pretty good), treated Hobson like dirt etc....As for Fisk, I recall outrage with the GM and ownership over his departure, never with the player.

Just today, sports radio is killing Sox fans for allegedly killing Salty - not by words but by not calling in outraged over his departure! Imagine, even when fans are quiet it is painted as thought they are ripping a guy. Ditto Ells, only complaints are he got way over-paid, so sports radio is claiming that means Sox fans are ragging on the guys ability. Mind you, the same sports radio that killed management over signing Victorino, Gomes, Demster, Carp etc al.

Side note: Salty had a very, very lucky season, His BABIP was obscene. He's average defensively and wanted (and got) three years. (Uh oh, I'm ripping the guy!) Sox have two catchers who would be blocked from an opportunity if Salty got three years so Cherington found a non-compensation good catcher to rent the spot for one season. Ooops, but Sox fans aren't mad enough about the guy being a meany.