Posted by Bubbles
how does paying Wells $21 mil next season help them cut payroll? Are they expecting A-rod and Tex to restructure their contracts? Or will Jeter and Pettite actually retire?
"The Vernon Wells contract will actually help the Yankees' goal of being below $189 million in payroll for 2014, a source confirmed to ESPNNewYork.com on Monday.
The Daily News first reported the finances.
All the particulars of the money for the deal with the Angels have not yet been finalized, but the Yankees will end up paying somewhere between $12 million and $14 million of the $42 million owed to Wells in the final two years of his contract.
The Yankees will likely end up doling out $10 million or $11 million for 2013 and $2 million or $3 million for 2014.
It is a complicated formula, but, in the end, Wells' money will either have no impact on the $189 million goal for 2014 or the Yankees will receive a credit. Since Wells' contract has been traded once before, the Yankees may receive as much as a $2 million savings toward their '14 luxury tax figure. So Wells potentially will help on the field and in the boardroom.
The Yankees and Angels are finalizing the money because the deal could also help Los Angeles' luxury tax situation.
So when you evaluate the deal, it makes it look better. The Yankees are taking a flyer on Wells -- whose looked good in the spring -- while possibly getting luxury tax relief."