Baseball
The Yankees' Max Fried Deal: Non-Baseball Tax Impact
2024-12-12
The New York Yankees have made a significant move in the baseball world by signing Max Fried to an eight-year, $218 million deal. This contract, the biggest ever given to a left-handed pitcher, was the first step in Brian Cashman's Plan B after losing Juan Soto. The negotiation was no easy feat, with a fierce competitor in the mix. According to The Athletic's Ken Rosenthal, the Yankees offered Fried an extra year to outbid the Texas Rangers, and this decision had nothing to do with baseball alone.
Before the Eovaldi Agreement
Before finalizing their deal with Eovaldi, the Rangers made a serious push for free-agent left-hander Max Fried. They offered him a seven-year, $190 million contract, as reported by Joel Sherman of the New York Post. However, the lack of state income tax in Texas increased the potential value of the contract, forcing the Yankees to go the extra mile and offer eight years and $218 million to secure Fried's services.This income tax issue has become a common theme in various sports. Just this week, Buffalo Sabres general manager Kevyn Adams made headlines when he admitted that his team struggles due to being in a tax state. Juan Soto's contract included a $75 million signing bonus to help offset taxes since he is a Florida resident. The Yankees recognized the importance of eliminating this negative and were willing to pay up.The Yankees' Offseason Moves
The Yankees are not done making moves this offseason. They have lost key players from their World Series lineup, including their starting right fielder, left fielder, first baseman, and second baseman. Offense is of utmost importance, and Christian Walker could be a great addition. In fact, no first baseman hit a home run after July 31 for the Bombers.There are two Astros players, Kyle Tucker and Alex Bregman, who are connected to the Yankees. Both fit the team's offensive and defensive needs and would add to the Houston/New York rivalry. However, the state income tax issue may also come into play as both players come from Texas.The Rangers' 2024 Performance
The Rangers had a disappointing 2024 after winning the World Series the previous year. They brought back Nathan Eovaldi after losing out on Fried, which strengthens their rotation. Max Scherzer is a free agent, but rookie Kumar Rocker is expected to join the MLB club. Since they don't need pitching, the Yankees are not a trade option for them.The Yankees and Rangers could be vying for similar players, with Chicago Cubs' outfielder Cody Bellinger at the top of the list. If one of these teams makes a trade for Bellinger, it could significantly change the power dynamics in the American League.