Yankees Continue Talks With Blake Snell
Speculation regarding the New York Yankees and free agent pitcher Blake Snell continues as the team reportedly offers a new contract after signing Marcus Stroman. However, the Yankees face challenges due to their luxury tax status and long-term commitments to other players.
Yankees Still Negotiating with Snell
Despite signing Marcus Stroman, the Yankees have not given up on pursuing Blake Snell in free agency. They have reportedly offered him a contract, although the specifics may have changed after signing Stroman. According to reports, the Yankees and Snell have been discussing various contract parameters as recently as yesterday.
Snell's agent, Scott Boras, has suggested the possibility of a shorter-term deal with higher annual salaries and opt-out opportunities. This is a different approach from Snell's previous focus on maximum guarantees. However, this concept may not align well with the Yankees' current situation.
Luxury Tax and Long-Term Considerations
The Yankees are already in the top tier of luxury tax penalties as a third-time payor. Any additional spending will be taxed at 110%. Backloading a deal to avoid immediate taxation is not possible, as the luxury tax is based on the contract's average annual value (AAV). Thus, increasing the AAV further penalizes the Yankees.
Aside from the taxes, signing Snell would also result in other consequences for the Yankees. They would forfeit draft selections and international bonus pool money. Moreover, the team already has major financial commitments to Gerrit Cole, Aaron Judge, Carlos Rodon, and Giancarlo Stanton in the coming years.
Long-Term Concerns and Alternative Options
A longer-term deal that spreads out the guaranteed money while lowering the AAV could be a more viable option for the Yankees. However, it would come with its own concerns. The team already has significant financial obligations to multiple players beyond the 2027 season, including a potential extension for Cole.
Considering the age of the players involved, there is understandable hesitation in committing over $100 million to three players who will be 36 or older in 2029. Despite interest in Jordan Montgomery, the financial challenges associated with Snell's contract apply to him on a smaller scale.
The Yankees must carefully weigh their options and financial constraints before finalizing any deal with Snell or other potential free agent pitchers.
