For the first time, Yankees managing partner Hal Steinbrenner disclosed publicly that he intends to cut his team’s payroll over the next two years, signaling a fundamental shift in philosophy from the free-spending ideology once championed by his father.
“Budgets matter,” said Steinbrenner, the managing general partner of baseball’s richest franchise. “Balance sheets matter.”
Steinbrenner’s motivation is clear. Built into the new collective bargaining agreement is a provision that would refund some of money that the Yankees shell out now through baseball’s revenue-sharing program. But eligibility for the refund is tied directly to a team’s ability to stay under the luxury tax threshold.
And then he drops the iron fist with this quote:
“Well, I’m looking at it as a goal,” Steinbrenner said. “But my goals normally are considered a requirement.”
We’re all for the Yankees being run smarter and more efficiently. Keep in mind that part of the reason the Yankees payroll is so inflated is because they’ve given out really bad deals to certain players. If this means an end to obviously overvalued contracts like Arod, Jeter, and Soriano, then great. (Side note: this would also require getting a certain team president out of the player acquisition business).
But is that really the motivation behind Hal’s budget cuts? Do you think he’s doing this for the benefit of baseball product? Will we see money allocated to other areas like scouting, statistical analysis, etc? Will we see ticket costs stabilize? Or is this a straight money grab, pure and simple?



42 Comments
i am the inferno March 2, 2012 10:39
I believe its quite obvious that the team will focus into spending less to prevail in the overall success of the team. Could the yankees pay above the tax cap and still make a profit? of course they can but it would just hurt them long term.
what good would it give the team if the team would be prevented and penalized from spending not only in the draft but in the IFA because people want them to go over the 189 cap?
Does that make Hal greedy? No, its just playing smart under the new rules, facts are even if they spend a lot r dont they will still be earning a big fat check regardless.
So what would I do to make the team better? i would invest those extra millions on scouting, better development and even more clinics in Puerto rico – Dominican republic and venezuela. the more scouts the more chance you have to finding a prospect
the better development staff , the more success you may milk out of the prospects in cheap trades or to better compliment your ball club with those high priced FA they sign.
Joe Páwlikowski March 2, 2012 15:11
A post after my own long winded boring ass heart. I do love thee. Call me when the boyfriend is out. Kisses
Mysterious Woman - Guess Who! March 2, 2012 20:13
http://a2.twimg.com/profile_images/1624663679/IMG_0128.JPG
Nice March 3, 2012 22:16
I thought you said WOMAN…
Joe Páwlikowski March 6, 2012 11:43
No one gives better salad tossing than Bexy.
Peter Gammons March 2, 2012 10:43
Liverpool is the greatest collection of futbol players of all time. My owners can spend!
smoke screen March 2, 2012 10:51
payroll will remain in the 200-210M range…
An exec for the Red Sox March 2, 2012 11:00
The Yankees have more money than us hence why we hate on them. Oh shit, is this thing on??!?!?
*RUNS OUT OF THE ROOM*
BIG BERTHA March 2, 2012 12:59
YAHHNKS only win cawse of PAYROLL and JETAH’S PERFECT ASSSSS thats what Mike LUPICA SAID
Gordon Gekko March 2, 2012 11:47
Greed is good.
Mitt Romney March 4, 2012 02:54
How’s it hanging, Gordo?
Obama March 6, 2012 11:43
Give me money.
2012 March 2, 2012 11:57
The second generation wealthy suck the business dry.
1st generation builds it up.
Brett Pedroia March 2, 2012 17:09
Leave the ‘sucking dry’ part to me!
An 11 year old Cub Scout March 4, 2012 20:43
I need an adult I can trust!
Pete C. March 3, 2012 08:39
I believe the expression is ; the 1st generation makes the wealth, the2nd hoards it, and the third squanders it. I think this falls under the hoarding Part.
I love Hal ‘s quote about how his goals are requirements.
What a fucking douche. When ever I worked for an asshole like that, I waited till he really needed a job I was doing, went out and found other employment, then quit.
Hal was born on 3rd he just thinks he hit the triple.
All this would ring true if they didn’t have so many shitty contracts on the books.
That’s their fault, by saying he’s gonna cut payroll now is at best disingenuous.
The team should suck it up, do a better job with future contracts and ride this out.
R2-D2 March 2, 2012 13:26
Or because if they don’t trim payroll by that target date they will accrue the largest luxury tax hit to date. Hal is tired of paying baseball welfare so other teams can use the yanks own money against them so in a fiscal strategic move will have a cooling off period as some contracts come off the books and the tax bracket adjusts. In the meantime using the farms rich pitching to float to the team until the vaults can be opened again with impunity…..
Better story is NAH THOSE RICH CRACKERS IS GREEDY!!
TSJC March 2, 2012 15:10
Nigga’s be hatin’. In the hood we feel lucky to have a trisket cracka for dinner biotches
Pete C. March 3, 2012 08:46
Yeah it sucks Paying all those other sociopaths welfare especially when they don’t use it to sign players.
So that means he’s gonna pull his horns in and just spend less until Jeters, Arods, Texierras , C C’s contracts expire and then start spending again?
Somehow I don’t think that’s in his long range plans
potatoes March 4, 2012 00:52
nah, Hal’s smart. He’s going to keep cutting (perhaps not as strictly as the 189 in 2014), but he’s going to run it efficiently. Granted, this also insinuates that he learned his lesson from the Soriano contract.
This also means no more A-Rod type contracts. :)
Pete C. March 4, 2012 07:25
If your right then good.
But does anybody think this is getting straightened out quickly . With these “goals” in mind,
I believe the team will be headed for some lean years.
Ryan Braun March 2, 2012 14:01
How do we know Hal isn’t taking the money and leaving it in his house over the weekend?
The Truth March 2, 2012 15:15
Shut the fuck up. No one wants to hear from you until you explain how your testosterone levels were “insanely high.” You arrogant fuck, I hope your nuts fall off.
David Ortiz March 2, 2012 17:10
He didn’t have anythin bad except some Dominican milkshakes I gave him!
The Truth March 2, 2012 15:02
The real questions is this. if the payroll does go below $200MM what will douche bag Lupica write about? To be blunt I think Hal is saying the following to MLB “If you want to rape us fine, but make sure the fucking Royals, Pirates, and Padres are at least trying and not taking our money and putting it in thier pockets.” Besides what free agent is going to be worth a big contract in a few years?
Steve Balboni's Bastard March 2, 2012 15:09
I want to see this 189 thing if Banuelos and Betances shit the bed and Pineda is average.
This team prints money. A 50 mil tax is nothing at the end of the day for them if it means keeping a great team on the field for box office, tv ratings, etc.
Just see SNY and the Mets this year if you really think they’d let this fall into disarray to make some number.
The Truth March 2, 2012 15:20
To compare the Yanks and the Mets is insane. Honestly the Mets are in no position to bid on much less sign a free agent to a big money deal. The key will be what will this team do when Cano needs to be signed long term. They better not be like Wilpon who let Reyes walk for nothing.
Nick Social March 4, 2012 20:48
How could 3 people downvote this?
Steve Balboni's Bastard March 6, 2012 11:45
You assume Pineda, Betances, Banuelos, Warren, etc all will be solid starters.
HUGE assumption.
Roy Keane's Dog March 2, 2012 15:27
Should have been a 3rd option in the poll: Hal trims expenses until US economic recovery improves, sells team in 2014 with valuation sky high.
Mitt Romney March 2, 2012 17:23
Of course I love baseball. Some of my best friends own baseball teams.
Gregg Williams March 3, 2012 00:26
I’ll make it rain if you take out their tight end.
POTUS March 3, 2012 09:04
I have nothing better to do than call people who have been badmouthed by shock jocks on the radio!
Jeremy Lin March 3, 2012 22:14
I’m confused. Is he talking about me?
Jeet Skeet March 3, 2012 10:35
when is this rap contest so I run off a freakishly good BIGGIE verse again?
Negrodamus March 3, 2012 14:01
As with most “cost-cutting” measures, this just means the cracker in charge needs a new yacht.
Pete C. March 3, 2012 16:31
You speak truth to power.
Mitt Romney March 4, 2012 02:56
Not me, I’m not greedy. Three yachts are enough for anyone.
Obama March 8, 2012 15:04
Give to the poor. Taxes. Higher taxes. Redistribute wealth. Light up a Kool’s.
Long Gone March 4, 2012 18:45
Well, the Yankees have to keep winning so I dont think he will drop the payroll under the tax, at the expense of winning. Yankee stadium would be empty with a loosing team. It wouldnt take much to become a loosing team in the AL east. By loosing team, I mean Blue Jays level over the last decade or so…competitive but not in the race.
If the Yankees drop out of contention while getting under the tax, I have to figure Hal is selling the team. Having the books look good, while having a decent team, he probably doesnt loose any value in the franchise. He also pockets a ton of money before selling. I think this is the most likely scenario. He does not seem to have the passion for the Yankees that George did.
Losing March 4, 2012 20:50
sup.
Ryan Braun March 6, 2012 16:26
Misspelling losing has got to be the most annoying sign of bad education.