This is a rule I had no idea about. According to Buster Olney, the WBC is paying the money that Mark Teixeira is owed while he’s on the disabled list. I assume that since the injury took place while he was a part of the WBC, whatever body will cover the Yankees’ cost while out with his wrist injury. This equates to about $7-$8 million, depending on how long he’s out. This could explain the team’s sudden ability to spend, since they’ll be adding $13 million to the payroll over the next two years by acquiring Vernon Wells from the Angels. I have no idea how this affects the Yankees’ luxury tax, because few people even knew this existed up until tonight.
Ken Rosenthal adds, the WBC insurance covers players who are on the DL for over 30 days. It also covers players who return from the DL, and thereafter reinjure themselves.