Derek Jeter, Yankees agree to reworked contract for 2014

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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.