Alex Rodriguez

Yankees could receive insurance funds if Alex Rodriguez can’t play

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So, the best thing A-Rod can do for the Yankees now is not play?

CBSSports.com’s Jon Heyman reports that the Yankees have insurance on Alex Rodriguez’s contract that would cover 75-80 percent of his salary if he proves unable to play due to injuries.

Rodriguez is currently expected to miss 4-6 months following hip surgery in January, potentially leaving him sidelined until June or July.

The way insurance on baseball contracts typically works is that it doesn’t kick in unless a player misses the entire season. Whether that’s the case here is unknown, but it’s a pretty good case there won’t be any immediate windfall for the team.

Rodriguez is signed for five more seasons at a total of $114 million. If his body continues to break down, then perhaps the Yankees will recover big portions of his salary in future years. It might also have luxury-tax ramifications. Technically, A-Rod’s salary would still count against the tax even if he were injured and insurance was covering it, but if the Yankees dropped him from the 40-man roster, it no longer would.

That’s what happened with disappointing import Kei Igawa before his contract expired. Since he was no longer on the 40-man, his salary didn’t figure in for tax purposes. However, the Yankees also couldn’t pay someone to take him — which would have had luxury tax ramifications — and they essentially held him hostage in the minors until his contract was up.

Report: Royals and Eric Hosmer have discussed a long-term contract extension

SAN DIEGO, CA - JULY 12:  Eric Hosmer #35 of the Kansas City Royals and the American League rounds the bases after hitting a home run against the National League in the 2nd inning of the 87th Annual MLB All-Star Game at PETCO Park on July 12, 2016 in San Diego, California.  (Photo by Denis Poroy/Getty Images)
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Ken Rosenthal of FOX Sports reports that the Royals and first baseman Eric Hosmer have discussed a long-term contract extension. However, Hosmer also indicated that he will head into free agency if a deal is not consummated by Opening Day.

Hosmer, 27, avoided arbitration with the Royals last month, agreeing to a $12.25 million salary for the 2017 season. He is one of four key Royals players who can become a free agent after the season along with Mike Moustakas, Alcides Escobar, and Lorenzo Cain. If Hosmer does reach free agency, he would arguably be the top free agent first baseman.

Hosmer finished the past season hitting .266/.328/.433 with 25 home runs and 104 RBI while making his first All-Star team.

Yankees sign Jon Niese to a minor league deal

PHOENIX, AZ - AUGUST 17:  Jonathon Niese #49 of the New York Mets delivers a pitch during the first inning against the Arizona Diamondbacks at Chase Field on August 17, 2016 in Phoenix, Arizona.  (Photo by Jennifer Stewart/Getty Images)
Jennifer Stewart/Getty Images
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Joel Sherman of the New York Post reports that the Yankees have signed pitcher Jon Niese to a minor league contract, pending a physical. Assuming the deal is finalized, Sherman notes that the Yankees will have Niese work as both a starter and a reliever in big league camp this spring.

According to Sherman, the Yankees were interested in lefty relievers Jerry Blevins and Boone Logan, but didn’t want to commit at their asking prices. They are looking for a lefty set-up man along with Tommy Lane.

Niese, 30, pitched for the Pirates and Mets last season, finishing with a 5.50 ERA and an 88/47 K/BB ratio over 121 innings.