The 2020 New York Yankees landed at $208,000,000 in the luxury tax threshold, paying $240,894,560 in 40-man tax payroll, which estimates that they paid $22,195,920 in tax last season, per Spotrac. Since the Yankees are moving on from James Paxton, Masahiro Tanaka, and JA Happ, their 40-man tax threshold will drop to $191.7 million, far less than the $240 million they were at in 2020.
Based on these numbers, and the fact manager Hal Steinbrenner wants to stay beneath the $210 million thresholds, the Yanks only about $30-35 million to utilize on the open market.
With a specific amount of money to spend, the Yankees will have to make some difficult decisions this off-season. Of course, they have prioritized the retention of DJ LeMahieu, who will likely garner $25 million per season, leaving them with minimal money to allocate in free agency.
However, general manager Brian Cashman remains optimistic about his roster and the talent they currently have.
“We already enter this process with a strong group;†“There are not an extensive amount of weaknesses;†and “I have a very strong nucleus in place and a roster that is almost full that we are proud of.â€
Ultimately, things might seem perfect from the inside, but the starting pitching rotation lacks depth, and they cannot rely on young arms throughout the entire 2021 campaign. The Yankees will inevitably make the postseason, but how far they go is the big question.
They could target the trade deadline as an opportunity for them to pick up a solid pitcher to carry them the rest of the way, but that is a long time from now, and they will have to get to that point with the talent available.
“I thought last year’s team was really talented and we didn’t maximize that talent,†Cashman said. “That’s on me.â€
This comment from Cashman seems misguided, as the talent he provided Aaron Boone should have been more than enough, he seems to believe. The Yankees’ inability to maximize that talent is a coaching problem, not a general manager issue.
Nonetheless, the Yankees plan on being spectators in the market until the LeMahieu negotiations have finalized. If he doesn’t end up signing with the Yankees, they can reallocate this money elsewhere, but for now, they are under the expectation that their available money will only take them so far and bolster units of weakness to a certain degree.
“We are not dipping toes in various waters until [the LeMahieu situation] declares itself.â€