The Yankees announced today that they have signed Derek Jeter to a one year contract worth $12 million.
It is a great deal for both sides.
The news comes courtesy of deadspin.com.
First, Jeter means so much to the Yankees that signing him to a deal, even one that is going to give him much more than he would have commanded on the open market, is a good move by the Yankees to keep one of the franchise's most popular players around for his entire career.
Second, even though this technically counts as a raise for Jeter, who was set to make $9.5 million by picking up his player option, the move also saves the Yankees money, as deadspin notes:
As an option, the $9.5 million would have been counted as part of his previous contract, with an average annual value somewhere north of $14 million. That's the number that would count against the luxury tax, which the Yankees are desperately trying to get under. (They paid $29 million in tax in 2013.) But by si...