Say what you want about George Steinbrenner, but he was a hell of a businessman. From turning a tiny initial investment in the Yankees into a billion-dollar franchise, to starting his own regional sports network, rarely did the man make a business mistake. The pattern continued even until his death:
By dying in 2010, the billionaire and long-time
New York Yankees owner’s wealth avoids the federal estate tax, likely
saving his heirs enough money to field an entire team of Alex
death Tuesday came during an unplanned year-long gap in the estate tax,
the first since it was enacted in 1916. Political wrangling has
stalemated efforts in Congress to replace the tax that expired in 2009.
Because no one really knows his estate plan or the extent of his holdings, it’s hard to tell how much money he saved by going in 2010, but the back-of-the-envelope calculations in the linked article figure that, at a minumum, Big Stein’s heirs have saved $300 million+ by him passing in 2010 instead of 2009 or 2011.
Suggestion: whatever big free agent the Yankees sign this winter be given the nickname “tax break” or “death tax” or something like that.
The Red Sox have more or less withdrawn from the Edwin Encarnacion sweepstakes, with Evan Drellich of the Boston Herald noting that much of their reluctance hinges on the likelihood that they’d exceed the new $195 million luxury tax threshold by locking the DH into a lucrative deal. That doesn’t leave them without options, however, and FanRag Sports’ Jon Heyman reported that the club could be interested in 29-year-old corner infielder Pedro Alvarez, as well as fellow free agents Mike Napoli and Matt Holliday.
After playing just 10 games at DH from 2010 to 2015, Alvarez suited up as the Orioles’ primary designated hitter and part-time third baseman in 2016. His defense is sub-par, to say the least, but he batted .249/.322/.504 with 22 home runs for Baltimore in 2016.
According to Heyman, the Red Sox envision using Alvarez in much the same way the Orioles did. He’d have a place as the team’s DH with the occasional infield start, while Hanley Ramirez would keep his post at first base. Whether the Red Sox make offers to Napoli, Holliday or Alvarez, they’re expected to pursue a short-term deal in order to stay under budget.
The Braves signed left-handed reliever Jacob Lindgren to a one-year deal, according to a team announcement on Sunday.
Lindgren, the Yankees’ top draft pick in 2014, was nicknamed “The Strikeout Factory” after blowing through four levels of New York’s farm system in 2014. He started the 2015 season in Triple-A Scranton/Wilkes-Barre and was called up for his major league debut only two months into the 2015 season. The 22-year-old lasted seven innings with the club before succumbing to bone chips in his elbow, and underwent bone spur surgery in June before trying his luck again during spring training in 2016.
In August, the Yankees shut Lindgren down for the remainder of the season so the lefty could undergo Tommy John surgery. With a projected return date of 2018, Lindgren was non-tendered by the Yankees on Friday.
While the Braves won’t get the benefit of Lindgren’s top prospect skill set in their bullpen anytime soon, he will remain under club control if they keep him on their 40-man roster beyond the 2017 season (per ESPN’s Keith Law).