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Thursday, September 5
 
Yankees have tough decisions to make on free agents

By Bob Klapisch
Special to ESPN.com

The day Bud Selig and Donald Fehr stood shoulder-to-shoulder and declared peace, the baseball world turned its curious gaze towards George Steinbrenner, wondering: What now? The Yankees owner is the primary target of the new labor agreement's revenue sharing and luxury tax and anyone who knows the Boss -- which means, all of us -- senses Steinbrenner won't write a check without a fight.

Unlike the Mets, who seem powerless to stop a coming Dark Age, Steinbrenner is already mobilizing: he's reportedly retained super-attorney David Boies, who represented the Justice Department in its battles with Microsoft.

Although Steinbrenner has repeatedly declined comment on baseball's new economic order, a legal challenge, citing baseball's a discriminatory economic policy against the Bombers, is not out of the question, especially after the Yankees were the only team to vote against ratifying the new labor agreement.

Andy Pettitte
Will the Yankees bring back Andy Pettitte in 2003? They have a team option for $11 million.

The reason? Using this year's payroll as a formula, the Yankees would have to pay $56 million in luxury tax and revenue sharing, a whopping 80 percent increase from this year's $31 million sum. Most troubling to Steinbrenner, these projections are based on the initial 17.5 percent surcharge, a penalty that could skyrocket to 40 percent by 2006.

One major-league official put it this way: "Not even Steinbrenner is ready for a $200 million payroll. Not yet, anyway." But this isn't to say Steinbrenner will -- or even can -- drastically alter his spending profile. It's in his DNA coding to commit his every resource to winning, which is why the Yankees are now sorting out the following options:

  • Increase revenues. The obvious choice is to finalize a deal between Steinbrenner's YES Network and Cablevision, which has been stalled all season because of a legal dispute (as a result, Cablevision isn't showing the YES Network). According to initial estimates, an agreement could add an addition $70 million a year to the Yankees' coffers.

  • Steinbrenner could navigate around the new tax laws by under-assessing his payroll. He could legally transfer some of the burden to YES -- paying his players them for "personal services" to the network, and thus lightening the Yankees' financial load. Question is, would Selig allow Steinbrenner to "transfer" $5 million of Derek Jeter's salary to YES, which is not subject to MLB tax?

    If Selig were to condone such a tactic, no doubt it would create an in-house revolt from smaller-market owners, who are counting on the Yankees' money.

    That's why, for now, it's more likely the Yankees will move cautiously on several personnel decisions -- none of which will be addressed until the offseason. Roger Clemens, Andy Pettitte, Robin Ventura, Mike Stanton, Mariano Rivera, Ramiro Mendoza and Ron Coomer are all potential free agents, and even within that group of decisions, there are difficult subplots.

    First, there's Clemens, who's entitled to be paid $10.3 million in 2003, regardless if he pitches for the Yankees. Essentially, it's free money, and club officials assume he's going to ask for at least another $15 million to return next year as he seeks his 300th career win.

    Will the Yankees pay that handsomely for a 40-year-old pitcher? And what of Andy Pettitte, who missed nearly two months with elbow problems this year, and has an $11 million team option for 2003; do the Yankees make that investment? The club is similarly evaluating Ventura and Stanton, although the Yankees are reasonably sure that Rivera -- who has the right to opt out of his contract after 2002 -- will return at a 2003 salary of $8.5 million, in the wake of a shoulder injury that's depressed his market value.

    Still, the Yankees' options are far more lucrative than the Mets', who are struggling not just to win, but to find more money. When co-owner Fred Wilpon bought out Nelson Doubleday last month, he was forced to use $100 million of his own assets -- an unexpected hit, since many of Wilpon's co-investors abandoned him after September 11.

    Unlike the Yankees, the Mets don't have a lucrative TV deal, nor is antiquated Shea Stadium capable of providing additional revenue, either, since there's no room for luxury suites. A new ballpark? Out of the question, says New York City mayor Michael Bloomberg, who shelved a plan for an Ebbets Field-like facility in Queens.

    The city says it can no longer afford to build the Mets a new home, citing a $4 billion budget deficit which it incurred after the attacks on the World Trade Center.

    If nothing else, such contraints will likely ensure the return of both Bobby Valentine and general manager Steve Phillips, since both men are signed through 2004 for a combined $4 million. One major-league executive said, "As tight as things are for the Mets, the last thing Wilpon is going to do is pay guys to not work. He doesn't have the kind of money sitting around."

    Trouble is, the Mets are locked into $73 million next year for just nine players -- including Jeromy Burnitz, who they'd love to trade, but can't. And assuming they pick up Robeto Alomar's $8 million option and add another $5 million after Pedro Astacio's option kicks in, the club will have just $32 million remaining for its other 14 players.

    In other words, the Mets might not have room for free agent Edgardo Alfonzo, and Steve Trachsel, who's also eligible to test the market, could be replaced by rookie Mike Bascik.

    Repeat after the Mets: help.

    Bob Klapisch of The Record (Bergen County, N.J.) covers baseball for ESPN.com.







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