Call to the pen
Fansided

Signing Adam Ottavino may have maxed out the New York Yankees payroll

By Paul Ashley

NEW YORK, NY - OCTOBER 09: (NEW YORK DAILIES OUT) General Manager Brian Cashman and Manager Aaron Boone #17 of the New York Yankees during batting practice before Game Four of the American League Division Series against the Boston Red Sox at Yankee Stadium on October 9, 2018 in the Bronx borough of New York City. The Red Sox defeated the Yankees 4-3. (Photo by Jim McIsaac/Getty Images)
NEW YORK, NY - OCTOBER 09: (NEW YORK DAILIES OUT) General Manager Brian Cashman and Manager Aaron Boone #17 of the New York Yankees during batting practice before Game Four of the American League Division Series against the Boston Red Sox at Yankee Stadium on October 9, 2018 in the Bronx borough of New York City. The Red Sox defeated the Yankees 4-3. (Photo by Jim McIsaac/Getty Images) /
facebooktwitterreddit

The New York Yankees were expected to spend a large amount of money this offseason after dipping below the luxury tax threshold last season, but a recent signing may have signaled the end of bringing in additional reinforcements.

On Thursday, the New York Yankees signed free agent reliever Adam Ottavino to a three-year, $27.00 million contract (according to Jeff Passan on Twitter).  Although the signing is not yet official, it should put the overall payroll of the team between $207.40 million and $208.25 million.

The difference in the aforementioned figures is a result of the impending salary arbitration hearing for Luis Severino.  The Yankees organization filed for $4.40 million and Severino filed for $5.25 million, which accounts for the $850,000 difference as it will be up to the arbiters on which salary will be applied to the payroll.

The luxury tax threshold was $197.00 million last season, but it will increase to $206.00 million ahead of next season.  Even though the Yankees have exceeded the luxury tax threshold at this time, they are likely to trade Sonny Gray and his $7.50 million salary prior to the start of spring training.

Although a trade involving Gray would put the payroll beneath the luxury tax threshold, additional major league acquisitions will likely not occur this off-season.  This is due to the likelihood that the organization will enter next season with a payroll between $199.90 million and $200.75 million in order to leave room for trades or waiver claims during the season.

More from Call to the Pen

The Yankees used this strategy last year when they entered the season with roughly $167.00 million in salary commitments.  This allowed the organization to stay beneath the $197.00 million luxury tax threshold despite acquiring players such as J.A. Happ, Zach Britton, Andrew McCutchen, Luke Voit, and Lance Lynn during the regular season.

Unless the Yankees are able to rid themselves of the $21.14 million owed to Jacoby Ellsbury next season, they will only have roughly $8.00 million to spend during the season instead of the roughly $30.00 million that was available during last season.  Nonetheless, as the remainder of Adam Warren’s $3.32 million salary was shipped out mid-season to create payroll flexibility, the same situation could occur this season by trading Tommy Kahnle ($1.39 million) and/or Greg Bird ($1.20 million).

Next. Yankees avoid arbitration with Didi, Paxton, and six others. dark

Nonetheless, as the team is likely headed for a payroll over the luxury tax threshold after factoring in minor league salaries, player benefits, and potential mid-season acquisitions, they may elect to hold onto Kahnle and Bird for depth purposes.

Home/New York Yankees