Breaking down what exactly the Yankees’ 2014 budget plans entail once again this morning, Joel Sherman reports a detail that I was actually unaware of, and leaves open a potential rationale for scrapping the plans altogether:
The second inducement for going below $189 million is in the CBA’s revenue sharing refund program. It is a complicated concept and formula, but what is important to know is the Yankees would be rebated a percentage of what is the highest revenue-sharing payment in the sport, but — and this is key — only in years they are under the luxury tax threshold. If not, they forfeit the rebate.
There is debate about how much the rebate is worth since it is tied heavily to the revenue that, in particular, Atlanta, Houston, Toronto and Washington generate. Some initial projections had the Yankees getting between $5 million-$8 million after 2014 with a steady climb afterward. So between lower payroll, no tax and the steadily climbing rebate, the Yankees could save real money, $30 million-plus annually perhaps.
(click “view full post” to continue reading) Continue reading A possible payroll hedge?