Earlier in the offseason, we remarked that the current construction of the Yankees’ starting rotation was based significantly on “hope.”

There’s a lot of HOPE tied up in this rotation. Hope that AJ can be the dominant starter the Yankees mistakenly thought he was. Hope that Nova is better than his peripherals suggest. Hope that Phil Hughes can actually do something productive. And hope that Freddy Garcia has another vile of pixie dust.

For a team with the Yankees’ resources, this is way too much hopeful thinking. Something has to give.

Well, it looks like nothing is going to give because according to ESPN NY, the Yankees don’t have the cash to make any worthwhile signings.

It has been reported in several places that the Yankees and Red Sox are actively pursuing free-agent right-hander Hiroki Kuroda, but the baseball sources I have spoken with over the past week say it is unlikely the Yankees will make a bid on the 37-year-old former Dodger…

Kuroda is known to want in the neighborhood of $12 million or $13 million for a one- or two-year deal…But when you add in the 40 percent luxury tax surcharge, that pushes Kuroda’s price to around $17 million a season…

You can believe this or not believe it, but a team source told me last week that as much as the Yankees like Kuroda (they tried to trade for him last year), “We simply don’t have the money to pay him.’

Kuroda would be a definite upgrade to the rotation and the Yankees “don’t have the money to pay him.” Wow! If this is true, this might be the most significant news we’ve seen in a long time.

First, it’s now clearly obvious that the Yankees are indeed subject to opportunity cost. There’s a limit to spending in every business, regardless of size, and unless the Yankees are taken over by a Keynesian economist, it looks like they’ve hit their cap.

Second, if the Yankees have hit their spending cap, who is responsible for having such a run-of-the mill rotation despite being able to significantly outspend every other team in MLB?

In the past few years, we’ve seen terrible contracts handed out to Alex Rodriguez, AJ Burnett, Derek Jeter, and Rafael Soriano. Even the Mark Teixeira contract isn’t looking too good at this point. Now, we see that these bad deals are hampering the ability of the Yankees to spend on other areas of the team.

Will the Yankees still win a lot of games? Sure. But, have their resources been properly managed? Based on this recent news, it certainly appears the answer to that question is ‘no’.

Who’s fault is it for the lack of financial connection?