The New York Yankees have been one of the most aggressive ball clubs in Major League Baseball this offseason. Besides investing $218 million over eight years in left-handed starting pitcher Max Fried via free agency, the Yankees have acquired outfielder/first baseman Cody Bellinger and right-handed relief pitcher Devin Williams through trades with the Chicago Cubs and Milwaukee Brewers. The recent acquisition of right-handed pitcher Fernando Cruz along with catcher Alex Jackson from the Cincinnati Reds for catcher Jose Trevino strengthens the ball club’s bullpen. As the Yankees continue to address roster deficiencies, four matters of importance were evident when agreeing to terms with first baseman Paul Goldschmidt on a one-year, $12.5 million contract as first reported by Jack Curry of the YES Network: ramifications of the Competitive Balance Tax, compensation associated with free agents who rejected qualifying offers, financial concerns in signing another free agent to a $200 million contract and the willingness to take calculated risks on distinguished veterans in the twilight of their careers.
According to the Associated Press, the Major League Baseball commissioner’s workplace has released final 2024 salaries and competitive balance tax penalties. The Yankees were ordered to pay a fine of $62. 5 million as the third largest payer of the Competitive Balance Tax under existing collective bargaining. agreement. The Yankees’ final 2024 payroll for competitive balance tax purposes is $316,192,828, while the base tax threshold for the season is $237 million. With the arrival of the Competitive Balance Tax in 2003, the Yankees paid $452 million in fines. Last season, the Yankees paid a $32. 4 million fine based on a final payroll of $283,769,980 for 2023 with a base tax threshold for the season of $233 million.
As a Competitive Balance Tax payer, hiring a free agent who prolonged and declined a qualifying offer becomes problematic for the Yankees. Fried has already charged the Yankees their second- and fifth-highest pick in the 2025 draft, as well as $1 million from their foreign bonus fund under the classification to offer entry regulations. Now that Goldschmidt has agreed to play for the Yankees and first baseman Christian Walker has signed a three-year, $60 million contract with the Houston Astros, another technique can be expected when it comes to free-agent third baseman Alex Bregman. He extended and declined a qualifying offer from the Astros, meaning if the Yankees signed him, he would miss out on his third- and sixth-highest pick in the 2025 draft because of the regulatory rating. Perhaps St. Louis Cardinals third baseman Nolan Arenado will reevaluate the parameters of his no-trade clause due to recent developments involving former teammate Goldschmidt.
Financial responsibility is a priority for the Yankees, as evidenced by the fact that the Cubs agreed to pay $5 million over the next two seasons on part of Bellinger’s contract. Under Cot’s baseball contract, Bellinger activated a $27. 5 million player option for the 2025 season and has a $25 million player option for the 2026 season with a $5 million buyout. While some might scoff at the fact that the Yankees are asking the Cubs for $5 million to make up a small portion of Bellinger’s contract, every dollar counts for a competitive breakeven contributor for each of the latest cut prices when it comes to winning talent.
The qualifying offer, the fallout related to first baseman Walker’s weak signing and an average annual price tag of $20 million for a baseball player about to embark on his age-34 season, were wrong, not the Yankees. Pete Alonso was not a viable option given the position and what the Yankees want from a first baseman in terms of defensive skills. Goldschmidt achieved greatness during 14 seasons in the primary league with the Arizona Diamondbacks and St. Louis Cardinals. The Yankees’ decision to sign Goldschmidt to a one-year deal is not without its threats given his age and declining skills.
A 37-year-old first baseman, Goldschmidt’s offensive production has seen a precipitous decline since winning the National League Most Valuable Player award in 2022. Goldschmidt played in 154 games last season and recorded an on-base score plus slugging plus ( OPS+). of 98 OPS+, where one hundred serves as the league average taking into account external points such as stadiums according to Baseball-Reference. By comparison, Goldschmidt posted a 120 OPS+ in 154 games heading into the 2023 season. He just finished a five-year, $130 million contract extension with the Cardinals, which averages an annual cost of $26 million for competitive balance tax purposes. according to Cot’s baseball contracts.
Goldschmidt possesses several intangible assets that deserve to serve the Yankees well in the short term. In addition to veteran leadership, stability at first base and a trophy case full of Gold Glove and Silver Slugger awards, Goldschmidt is the fourth Yankee pitcher to win the Most Valuable Player Award alongside Cody Bellinger, Aaron Judge and Giancarlo Stanton. A one-year, $12. 5 million deal is a worthwhile investment considering how Goldschmidt overcame an injury-plagued team. Anthony Rizzo last season. After earning $17 million in 2024, the Yankees declined Rizzo’s $17 million club option for 2025 and paid a $6 million buyout under Cot’s baseball contracts.
NEW YORK, NEW YORK – AUGUST 31: Nolan Arenado #28 and Paul Goldschmidt #46 of St. John’s Louis. . . [ ] The Cardinals celebrate after defeating the New York Yankees at Yankee Stadium on August 31, 2024 in New York City. (Photo via Jim McIsaac/Getty Images)
While Goldschmidt might answer one infield question, third base now becomes a focal point of attention. If the Yankees are hesitant in committing a long-term contract to Bregman at the outset of his age-31 season, does the 33-year-old Arenado make sense if he waives the no-trade clause? According to Cot’s Baseball Contracts, Arenado is owed $74 million over the next three years but has one of the most complex contracts in Major League Baseball when it comes to deferred compensation along with the Colorado Rockies making two conditional payments totaling $10 million for Arenado not opting out after the 2021 season.
The Yankees didn’t have much luck with the Cardinals and Arenado after providing right-hander Marcus Stroman in an industry proposal. Stroman, 33, is owed $18 million in 2025 and has an $18 million player option in 2026 if he completes 140 innings pitched next season, according to Cot’s baseball contracts. As the Cardinals are in the process of restructuring, both in terms of roster and payroll, those interested in Arenado are expected to request a favorable monetary agreement related to the balance of his contract.
The New York Yankees temporarily reinvented themselves this offseason after wasting Juan Soto to the New York Mets in free agency. While significant improvement is evident, the Yankees still face a difficult question about how to continue at third base. Alex Bregman will be an apparent pick for There are many, but the monetary and eligibility ramifications of the offer go far beyond a $200 million contract. The trade market can drastically replace Nolan Arenado and the St. Louis Cardinals, given the way Paul Goldschmidt agreed to a one-year deal with the Yankees. In addition to providing veteran leadership and expanding the Yankees’ already struggling roster, Goldschmidt may also hold the key to who will play third base next season in the Bronx.
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