It’s not just the money, it’s the lack of flexibility the Yankees have burdened themselves on a pitcher that is not a sure thing. If he bombs, they’re stuck with him for 7 years. And if Tanaka is somewhere in the middle, with his value still uncertain at the end of 2014 or 2015, the Yankees will be unsure as to how aggressively they go after a free agent like Lester or Sherzer or Price in a couple of years.
The Red Sox used a very different strategy last year in over-paying (on an AAV basis) in order to get FA’s on 2-3 year contracts. For example, they paid Victorino $39 mil over 3 years, but probably could have gotten at a cheaper AAV if they’d offered a 4th or 5th year.
The Yankees, with all their money, could do that in a much bigger way. They could have overpaid FA’s on shorter deals… or even structuring long-term deals with a club-option that, if declined, has a considerable buyout. Instead of giving Ellsbury a 7 year deal at $22 mil per, they could have given him a 4 year deal at $25 mil per year, and a club option for three more years at $20 mil per, with a $20 million buyout if they decline. Ellsbury might have declined, but it would have been $120 gtd, with a chance to go to FA at 35 years old.
They could have overpaid (AAV) to sign Garza or Shields for shorter contracts.
In the end they might only save a small amount of money, but the flexibility – the ability to cut and run – is what would really be valuable to the Yankees. Most other clubs can’t really afford to do this, since they’re worried about the luxury tax cap, so they give the long-term deals and hope they get a good playoff run, and if not, they suck for a while.
The Yankees get stuck with too many under-performers, that they feel they have to keep around. With all their money, they probably should just pay them what’s owed and buy better, newer, talent, but you keep hoping that guys will come back and perform. If they had buyouts in place (even very expensive buyouts) they could use they $$$$$ advantage. Teixeira might come back from wrist surgery this year, but not the Yankees are stuck with him, even if a top 1st baseman becomes available in FA. Same with CC, and, of course, ARod.
Maybe I’m understating the cost and overstating the flexibility, but I just can’t believe the Yankees are stuck on a model of operations that hasn’t worked very well.