It’s no secret that the New York Yankees have a goal in mind for their 2014 payroll.  It’s also no secret that they’re very interested in re-signing second baseman Robinson Cano.  However, satisfying both goals might not be an option if Cano and his agents continue to ask for $30 million per year.  If the Yankees keep the 2014 payroll under $189 million, it will satisfy the league’s luxury tax ceiling, as well as reset the team’s tax rate.  Instead of money going to Major League Baseball, it would be there for the Yankees to use.  So, keeping the payroll under $189 million for 2014 would definitely bring benefits, but would it be worth having another mediocre season?

According to the Cot’s Baseball Contracts website, the Yankees have already committed about $86 million to Alex Rodriguez, Mark Teixeira, CC Sabathia, Alfonso Soriano, Vernon Wells and Ichiro Suzuki.  Derek Jeter is expected to exercise his $9.5 million option to bring that number to more than $95 million.  The Yankees are also expected to spend about $15 million more on arbitration-eligible players including David Robertson, Ivan Nova, and Brett Gardner.  That brings the total payroll to $110 million for 2014 already, and that’s without Cano.

It might seem like the remaining $79 million would be more than enough to sign Cano for around $25 million per year, along with about 10 other players with smaller salaries.  However, it must be taken into account that the $189 million INCLUDES insurance costs, medical costs, pension benefits, non-salary expenses, and all 40-man roster salaries.  With all of those factors, Cano’s potential cost looks a lot more troublesome than before.  Let’s also keep in mind that the resolution of Alex Rodriguez’s PED hearing will have a large impact on the money the Yankees have at their disposal.  If his suspension of 211 games is upheld, the team will not be held responsible for his 2014 salary. 

Although it seems like a simple move to re-sign Cano, it could get a little tight if the Yankees still have to pay A-Rod for the 2014 season.  Another factor on the table is an array of other free agents the Yankees are pursuing including Brian McCann, Shin-Soo Choo, Jacoby Ellsbury, and Carlos Beltran.  Their decision regarding Cano will directly impact how seriously these free agents are pursued, as well as the 2014 payroll goal. 

It would greatly benefit the Yankees in the long run to remain under the $189 million luxury tax cap, but in no way is it an absolute necessity.  General manager Brian Cashman reiterated this sentiment by saying the figure is, “ a goal, not a mandate,” which leaves the door open for the possibility of exorbitant spending by the Yankees like we are used to.