The Yankees are expected to get their payroll under $189 million for 2014. A decision borne of a desire to avoid the luxury tax, which could cost them some $100 million over the next two years.
Joel Sherman of the New York Post talks to Hal Steinbrenner about all of this. It’s a good interview, but I find the assumption Sherman has going into it — that Big George would never lower the payroll to avoid the luxury tax — to be something less than reasonable:
… no current issue brings out George-channeling psychics quite like the organizational plans to drop under the $189 million luxury tax threshold in 2014. No way The Boss would do that. He would do whatever was necessary to win a title — damn financial common sense.
I’m not so sure. George Steinbrenner was a lot of things, but a dumb businessman was not one of them. He turned a small investment — with a lot of other people’s money — into a franchise worth more than a billion dollars. During the years he was running the team actively he never had to face the severe luxury tax implications the Yankees face next year if they don’t get under $189 million. I don’t think it’s at all reasonable to say that George would act differently.
But we live in a world where everything is seen through George-colored glasses when it comes to the Yankees. So people will continue to say that, I suppose.