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Derek Jeter, Yankees agree to reworked contract for 2014

Nov 1, 2013, 1:25 PM EDT

derek jeter getty Getty Images

Derek Jeter and the Yankees have agreed to a one-year, $12 million contract for 2014.

On one hand that represents a $5 million paycut from this season, when Jeter missed all but 17 games and wasn’t effective when in the lineup. On the other hand his old contract included a $9.5 million player option for 2014 and he’s getting a nice $2.5 million raise on that.

There was obviously never any chance of Jeter playing for another team and a couple million dollars means little to the Yankees, but it’s an interesting little series of events considering he was injured for nearly the entire season and is 40 years old. By tearing up the 2014 option and agreeing to a reworked deal the Yankees avoid some luxury tax ramifications tied to the average annual salary of his old contract. So this costs the Yankees more money in salary, but saves them some money in luxury tax payments.

  1. darthicarus - Nov 1, 2013 at 1:27 PM

    So does Jeter now just give the front office one large collective gift basket, or does he give each person their own?

    • maikoch - Nov 1, 2013 at 1:37 PM

      +1

      • cohnjusack - Nov 1, 2013 at 1:45 PM

        There’s a button for that. You don’t put it in a response.

      • daviddmsvcp - Nov 1, 2013 at 2:43 PM

        -1

      • maikoch - Nov 2, 2013 at 3:03 AM

        +1

  2. Stiller43 - Nov 1, 2013 at 1:33 PM

    I think with the 5 mil in savings, they should give HIM the gift basket

  3. Kevin S. - Nov 1, 2013 at 1:36 PM

    This was always the logical outcome, from the moment the new CBA was announced. If the $3 million buyout Jeter had is included in the $12 million, that $2.5 million bump in pay saves the Yanks over $5 milliin against their LT number.

    • j0esixpack - Nov 1, 2013 at 3:46 PM

      Seems like a win-win for everyone. The Yankees need to have some “good guys” on the roster even if Jeter is coming off injury.

      Even as a Red Sox fan I put him in the category of a player who transcends team loyalty – like Rivera as a baseball fan before being a team fan you have to recognize greatness

      What he can actually do on the field to earn that money remains to be seen

      • byjiminy - Nov 1, 2013 at 10:55 PM

        It’s not a win-win for everyone. It’s win-win for the Yankees and Jeter. It’s a loss for all the small market teams that depend on this tiny redistribution of a very inequitable revenue situation.

        You can argue about whether the revenue tax is good or bad, big enough or not enough. Some think the Yankees have a ridiculous advantage, and league revenue should be shared a lot more evenly, as it is in the NFL for example. Others think the Yankees should be able to rake in as much dough as they want. But I don’t think you can argue that small revenue teams are winners in this deal.

        Whether it’s a sleazy subversion of the rules, or just honest, fair play according to the rules, I’m not sure. But I’m not thrilled that the rich just got richer and the poor just got poorer.

    • ctony1216 - Nov 2, 2013 at 1:44 PM

      Actually, the new contract does NOT help the luxury tax number. Mark Feinsand of the Daily News reports …

      “According to a separate source with knowledge of luxury-tax rules, Jeter would have counted $10.75 million against the cap had he exercised the option. With the new contract, Jeter will now count $12.8 million against the cap, adding $2 million to the Yankees’ total as they try to stay beneath the $189 million threshold.

      Read more: http://www.nydailynews.com/sports/baseball/yankees/yankees-sign-jeter-one-year-12m-deal-2014-article-1.1504027#ixzz2jVks9OrC

  4. mvd513 - Nov 1, 2013 at 1:48 PM

    +1

  5. jxegh - Nov 1, 2013 at 1:58 PM

    Alex Rodriguez next in line to take a pay cut?

    • Old Gator - Nov 1, 2013 at 2:28 PM

      Guffaw.

    • dman6015 - Nov 1, 2013 at 3:19 PM

      Maybe that’s how the Yankees are going to pay for a lot of things next year, the hope that they DO NOT have to pay Rodriguez.

    • pisano - Nov 1, 2013 at 3:25 PM

      They would just cut him if they could, but that’s not happening. All these teams better learn from the 10 year contracts, and learn, you just don’t give anyone a 10 year contract.

      • Kevin S. - Nov 1, 2013 at 3:41 PM

        Actually, you just don’t give anybody in their 30s a ten-year contract. There’s a pretty solid success rate on mega-contracts that start before a player’s age-29 season.

    • byjiminy - Nov 1, 2013 at 11:01 PM

      “Alex Rodriguez next in line to take a pay cut?”

      What about giving a raise to a 40 year old player makes you think another player is about to take a pay cut?

  6. happytwinsfan - Nov 1, 2013 at 2:01 PM

    anybody got a guess on what the market value is for a 40 year old middle infielder, now about average offensively and sub average defensively, with recent injury issues, whose name isn’t jeter?

    i year, 5 mil counting incentives ???

    • jcmeyer10 - Nov 1, 2013 at 2:58 PM

      He puts enough butts in seats and sells enough jerseys to make that contract worth it.

    • dman6015 - Nov 1, 2013 at 3:20 PM

      Roughly the same marketability for some guy named Tebow.

  7. jbriggs81 - Nov 1, 2013 at 2:26 PM

    Pretty smart way to handle the Jeter situation by the Yankees.

    1. They don’t need to get into negotiations with him again. They did that last time and it made them look both look silly, especially when they became public.
    2. They save on the AAV of Jeter’s contract against the luxury tax. I think the previous AAV was approx. 14 mil, so they save 2 Mil (approx).
    3. Its a one year deal on an aging player returning from a severe ankle injury. Even if Jeter can’t play this season, its just one year and they probably can make more on his merchandise than they are paying to him. I’m sure that if Jeter doesn’t play this season, they have insurance to cover the missed year.
    4. This gives Jeter an opportunity to have his one last season (if he chooses), and they can market it for all its worth.

    • uyf1950 - Nov 1, 2013 at 4:15 PM

      Had Jeter exercised his $9.5MM player option the luxury tax calculation would have been $14.375MM. By not exercising that option and signing and entirely NEW 1 year deal for $12MM that’s all the tax hit the Yankees take for $2014 for Jeter. A savings of $2.375MM in 2014.

      • sabathiawouldbegoodattheeighthtoo - Nov 1, 2013 at 5:34 PM

        Not a savings, per se, but extra “cap” room. And they will have a smaller luxury tax bill if they do go over the $189

  8. unclemosesgreen - Nov 1, 2013 at 2:33 PM

    DOOOOOMMM!!!!

  9. nyeagles10 - Nov 1, 2013 at 2:40 PM

    and thats why hes the captainnnnnn

    • sabathiawouldbegoodattheeighthtoo - Nov 1, 2013 at 5:35 PM

      Yes, it was selfless of him to accept that extra $2.5MM for the benefit of the team…

  10. drelms - Nov 1, 2013 at 2:49 PM

    They have to bring somebody back to attract the girly fans, because they sure would not still pay this guy to be a shortstop when he can’t move more than a foot in either direction with any sort of speed.

    I’m sure everyone else in the league is happy that the yankees have decided to keep the old people around, it gives them something to hit at.

    Red Sox World Champions is going to be heard again, before the yankees ever have their name included in that sentence.

    Now, please throw like a billion at Cano so that we can really have a good laugh.

    • mogogo1 - Nov 1, 2013 at 3:17 PM

      “Red Sox World Champions” is not a sentence.

    • waterintow1n3 - Nov 1, 2013 at 4:47 PM

      27-8
      NY>Boston

      Keep talking noise and get dwarfed scumbag.

      • Navy Teacher - Nov 2, 2013 at 11:07 AM

        And there it is, why do Yankees fans constantly go back to the 27 championships? Twenty of those championships were won more than 50 years ago. Were you alive to see them? Good for the Yankees, Canadiens, Celtics and Steelers for having more championships than any other team in their respective sports. Nostalgia is nice but I don’t see a parade running through the boroughs. Here is the good news – the Red Sox were in a tailspin prior to this year. The Yankees were a bad team this year but all it takes is a few moves and they could win again. Then again, the Red Sox, Tampa Bay, and the Orioles are all really good teams. But hey,feel free to live in the past bud.

    • sabathiawouldbegoodattheeighthtoo - Nov 1, 2013 at 5:36 PM

      From a Red Sox fan this is rich stuff. Jeter’s defense is better than Ortiz’.

      • byjiminy - Nov 1, 2013 at 10:58 PM

        Um, Ortiz doesn’t play defense. He’s a DH. I’m no Yankees fan, but come on.

      • sabathiawouldbegoodattheeighthtoo - Nov 2, 2013 at 8:05 PM

        My point exactly. A Red Sox fan shouldn’t be ripping a team whose franchise icon plays mediocre defense, while theirs does not play defense at all.

  11. kungfubowler - Nov 1, 2013 at 3:25 PM

    So, at what point in 2014 will he announce this is his farewell season?

  12. nbjays - Nov 1, 2013 at 3:34 PM

    My thought exactly. I predict just after the All-Star break, so the second half of the season can be the “Derek Jeter Farewell Tour”.

  13. csmountaineer - Nov 1, 2013 at 3:35 PM

    well the thing is they will still make money… they can have just as big of a send-off for Jeter as the did for Mariano…. That day alone will bring in $$$$$$$$$$… all the fannies he puts in the seats, plus jersey sales, plus autographs and merchandise, his name and picture everywhere, ……. YANKEES will still make a ton of money EVEN if he bats .220 with 7 HR and 35 RBI…..

  14. MyTeamsAllStink - Nov 1, 2013 at 3:39 PM

    great idea!Bring back a breaking down 40 year old player who doesn’t make the Yankees better just older.

    • nyeagles10 - Nov 1, 2013 at 3:54 PM

      You know this article is about Derek Jeter right ? He derserves to leave when he wants to leave. Of course we dont want to see the jeter of 2013 again, but he means too much to this city for us not to bring him backk

  15. chadjones27 - Nov 1, 2013 at 3:41 PM

    Since the “luxury tax” is all about average annual salary, can teams start dealing 20 year contracts with the last 15 years at $1/yr?

    • Kevin S. - Nov 1, 2013 at 3:53 PM

      It would have to for the veteran’s minimum, not one dollar, and I would imagine the CBA gives the commissioner power to void contracts so blatantly designed to game the tax, much like Bettman did to the first Kolvylchuk (sp?) deal. Further, teams aren’t going to want to carry a dead tax number for a player who hasn’t been useful in over a decade, and no player is going to lock himself into a minimum contract long after what the terms of his deal would have been without the dodge.

    • cshearing - Nov 2, 2013 at 12:33 PM

      That kind of thing was being tried in hockey a few years ago. It was with a salary cap and not a luxury tax, but essentially the same principles.

      It led to the commissioner nixing a couple of contracts outright. He even penalized the NJ Devils $500k and a 1st round draft pick for “attempted cap circumvention”. Their 15-year contract to Ilya Kovalchuk, had the last several years at the league minimum and extended into his age 44 season; obviously never meant to be played & only inserted to bring the AAV down (please note this is all from memory, I may have a the facts slightly wrong).

      With the new CBA they have closed those loopholes.

  16. saintsfire - Nov 1, 2013 at 4:50 PM

    so is he going to be the Yankees DH/ coach / mentor?
    surely not the everyday shortstop

    • sabathiawouldbegoodattheeighthtoo - Nov 1, 2013 at 5:38 PM

      2B?

  17. drewsylvania - Nov 1, 2013 at 6:09 PM

    Way too much money. Most likely outcome is Kevin Youkilis 2.0.

  18. farvite - Nov 1, 2013 at 6:46 PM

    That’s one heckuva loyalty bonus.

  19. 7mantel - Nov 1, 2013 at 8:22 PM

    drelms : get back under your rock !

  20. keltictim - Nov 1, 2013 at 10:18 PM

    Jeters defense is better than Ortiz? Did you really make that statement? With gems like that you should write for the Boston globe.

  21. northstarsmitty - Nov 2, 2013 at 11:00 AM

    He gets 12 million to play 12 games next season? Wow. He is worth no more than 1 million per season, if that. Just retire already and sail off to your private island…

  22. mugsymagpie - Nov 2, 2013 at 11:21 AM

    Awesome keep him around longer that’s what we need more old players for the Yankees

  23. redsox711 - Nov 2, 2013 at 7:33 PM

    F the Yankees

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