State taxes could play a factor in Cliff Lee choosing between Rangers and Yankees

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While speculation swirls about how much Cliff Lee enjoyed his time in Texas and how much his wife disliked her time in New York, an overlooked factor in his free agent decision-making could be state income taxes.

Darren Rovell of CNBC wrote a very interesting article examining the differences in taxes Lee would pay depending on his new home. Texas does not have a state income tax, but it does have something called a “Jock Tax” that would involve Lee paying approximately $2.25 million if he signed a five-year, $120 million contract with the Rangers.

However, if Lee signed the same five-year, $120 million contract with the Yankees and moved to New York he’d pay between $11 million and $15 million in state income taxes depending on exactly where he lived.

In other words, assuming Lee can get in excess of $100 million from either team any offer the Rangers make will be worth about 10 percent more to him than any offer the Yankees make. Whether or not an “extra” $10 million would be enough to sway Lee one way or another is obviously unclear, but it does suggest that the Yankees will have to clearly top the Rangers’ offer to get him. Of course, we probably knew that already.

Report: Mets have discussed a Matt Harvey trade with at least two teams

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Kristie Ackert of the New York Daily News reports that the Mets have discussed a trade involving starter Matt Harvey with at least two teams. Apparently, the Mets were even willing to move Harvey for a reliever.

The Mets tendered Harvey a contract on December 1. He’s entering his third and final year of arbitration eligibility and will likely see a slight bump from last season’s salary of $5.125 million. As a result, there was some thought going into late November that the Mets would non-tender Harvey.

Harvey, 28, made 18 starts and one relief appearance last year and had horrendous results. He put up a 6.70 ERA with a 67/47 K/BB ratio in 92 2/3 innings. Between his performance, his impending free agency, and his injury history, the Mets aren’t likely to get much back in return for Harvey. Even expecting a reliever in return may be too lofty.

Along with bullpen help, the Mets also need help at second base, first base, and the outfield. They don’t have many resources with which to address those needs. Ackert described the Mets’ resources as “a very limited stash of prospects” and “limited payroll space.”