The Yankees and Derek Jeter reached a $12 million agreement for next season that feels as much thank-you-for-the-past as smart play in the present.
Jeter had a $9.5 million player option for next season. If he didn’t trigger it, he would have received a $3 million buyout and become a free agent, which would not have been useful for him because a) he doesn’t want to play for anyone but the Yankees and b) in the marketplace, he would have had difficulty getting $9.5 million, considering he is 39 and his future is uncertain because of a series of leg injuries, notably his fractured and re-fractured ankle.
So, he receives a $2.5 million raise because, well, he is Derek Jeter.
The organization was operating under the belief Jeter might turn down the option and both sides badly wanted to avoid the public animus that arose the last time Jeter negotiated with the Yankees. That resulted in a three-year, $54 million deal that included the option that was just washed away.
Given what Jeter has meant to the organization and that 2014 could be his final season, Hal Steinbrenner became heavily involved in wanting to find a number that worked for both sides and that resulted in a quick, painless deal. In part, Steinbrenner wanted it done quickly because he feels the team has too many other issues on which to concentrate to get into a protracted battle with Jeter.
However, while the Yankees got speed, they are not receiving any benefits toward getting under the $189 million luxury tax, which is their goal.
Had Jeter picked up his option, his salary — for how luxury tax is computed — would have been $10.75 million for 2014. Now, it is $12.81 million. And since the Yankees are going to struggle to get under the cap, every dollar is going to count.
At present, the Yankees have seven players signed for next season — Alex Rodriguez, CC Sabathia, Mark Teixeira, Ichiro Suzuki, Vernon Wells, Alfonso Soriano and Jeter — with a luxury tax value of $97.71 million. It falls to $70.21 million if Rodriguez’s suspension is upheld, and so, you can see why the Yankees need that outcome.