Skip to main content

Yankees and DJ LeMahieu finalizing $90 million deal

The Yankees are finally closing in on DJ LeMahieu.

LeMahieu is nearing a $90 million deal — for five or six years — to head back to The Bronx, a source confirmed.

It would mark the end of a long negotiation between the two sides that both wanted the same result, although the Dodgers, Blue Jays and Mets all showed interest.

The 32-year-old LeMahieu is coming off two standout seasons in The Bronx after signing with the Yankees for two years and $24 million prior to the 2019 season.

At the time, LeMahieu seemed an unlikely fit in a crowded Yankee infield, but he quickly became invaluable, providing consistent offense and a solid glove at second base, in addition to first and third.

General manager Brian Cashman made it clear LeMahieu was the Yankees’ top priority this offseason and they were willing to let other potential free agent targets sign elsewhere as the two sides negotiated.

“I understand by waiting on something you want and trying to find ways to make it happen … comes with risk,” Cashman said earlier in December. “That has a downside to it, too, but there are certain players you feel are more worth the waiting game on, and I think DJ LeMahieu is worth that.”

DJ LeMahieu is finalizing a deal with the Yankees
DJ LeMahieu is finalizing a deal with the Yankees.
Getty Images

Aaron Boone agreed, saying, “It’s no secret he is probably our No. 1 priority to bring back this winter. I know [Cashman] is working on that … Hopefully, at the end of all this, DJ is a Yankee for a very long time.”

In September, LeMahieu expressed his desire to remain in The Bronx.

“I want to stay here, but you never know how it goes,’’ LeMahieu said at the time. “I thought I was going to stay in Colorado and I didn’t. Hoping to be back here but you never know how it goes.’’

Now, he is back, which figures to be good news for the Yankees, who have come to rely on LeMahieu’s consistency both on the field and in the clubhouse.

LeMahieu’s return likely keeps Gleyber Torres at second, with Luke Voit at first base and Gio Urshela at third.

Cashman ruled out the possibility of shifting LeMahieu to first, which would allow Torres to return to second base — where he’s less of a defensive liability — and trading Voit.

“I am not pursuing a plan of trying to trade Luke Voit to sign LeMahieu to play first,” Cashman said. “My plan is, if we sign [LeMahieu], for him to play second base.”

The negotiations were complicated by the economic state of the game due to COVID-19, with team owner Hal Steinbrenner claiming the Yankees lost the most revenue in the majors last year.

And though the team hasn’t announced it publicly, it’s clear they intend to stay below the $210 million luxury tax threshold in 2021, leaving not much room to add beyond LeMahieu without moving other significant contracts.

____________________________________

The SPL Rocks!

 

Pulled up to my house today
Came and took my little girl away!
Giants Stadium 8/28/03



Oats

Original Post

Replies sorted oldest to newest

I'm guessing that's a 3 year deal, not too shabby.

If he keeps himself in the same rarified statistical category as his last 5 years, DJ will be entering HOF numbers.

____________________________________

The SPL Rocks!

 

Pulled up to my house today
Came and took my little girl away!
Giants Stadium 8/28/03



Oats

@IvanNF posted:

I'm shocked they got him that cheap, he wanted alot more. I guess his desire to stay outweighed the $$ he could have gotten elsewhere.  Maybe there's incentives in that contract that increase the value.

He got the same total dollars with added stability and security, plus he helped the Yankees get stronger as it freed up money for pitching.

____________________________________

The SPL Rocks!

 

Pulled up to my house today
Came and took my little girl away!
Giants Stadium 8/28/03



Oats

@sawyer posted:

Toronto should have offered the moon.  He's a stud.  Rockies were fools for letting him walk.  Of course they traded Nolan, so......

The reason Toronto and other Canadian Sports teams don't attract veteran players is they have to pay them so, so much more than an American Team.  When they go to Canada, they get taxed by our government and the Canadian Government plus most states and province have additional sports taxes on the player.  Here is part of the law:

Non-Resident Athletes Playing for Canadian Teams

Under s.2(3) of Canada’s Income Tax Act,  non-resident individuals can be taxed by the Canada Revenue Agency if that individual has:

  • Been employed in Canada;
  • Carried on a business in Canada; or
  • Disposed of a taxable Canadian property.

This applies to non-resident (e.g. American or other) professional athletes who play for Canadian sports teams, such as Americans, Swedes, Russians, Cubans and other foreign nationals who play for Canadian NHL, NBA, MLB, MLS, or other professional teams (e.g. Maple Leafs, Senators, Oilers, Flames, Canadiens, Jets, Canucks, Raptors, Blue Jays, Toronto FC, Vancouver Whitecaps, and others).

Requirements for Non-Residents Playing for Canadian Teams

All non-residents must pay Canadian tax on any income earned in Canada at the applicable tax rate (see below).

For professional athletes who play on teams who have games in both Canada and the U.S. (this would include most major league sports), this means they pay Canadian taxes only on income earned during games played in Canada.

Professional athletes must therefore file Canadian tax returns are report their:

  • Salary;
  • Signing bonuses and other bonuses;
  • Canadian endorsement deals;
  • Investments in Canada;
  • Real estate in Canada; and
  • Any other income earned in Canada.

In addition to paying tax on this income, Canada does not permit deductions from employment related expenses, which for professional athletes can include things such as agent fees or costs incurred during training (for equipment, mileage, etc.).

Canadian Tax Brackets

In 2018, federal tax brackets in Canada were as follows:

BracketTax Rate
$46,605 or less15%
$46,605 to $93,20820.5%
$93,208 to $144,48926%
$144,489 to $205,84229%
$205,842 or more33%


Most professional athletes would fall into the last category above, and thus would be taxed at the highest tax rate.

Other Considerations for Athletes

Professional athletes are in a unique situation. In addition to making income in both Canada and the U.S. (and, in the U.S. in multiple states, all of which charge different levels of “jock tax”), athletes earn significant income at the highest tax rate, but for a finite period of time.

All of these factors come together to create a very specific situation that many other income earners do not have to consider. Strategic wealth management and tax planning becomes incredibly important in order for these athletes to be able to enjoy a steady income for many years, including after their playing days are over.

Anyway, I'm glad he stayed.

____________________________________

The SPL Rocks!

 

Pulled up to my house today
Came and took my little girl away!
Giants Stadium 8/28/03



Oats

Add Reply

Post
×
×
×
×
Link copied to your clipboard.
×
×