FAIR EXTENSIONS FOR CANO AND GRANDERSON

With the Yankees 2012 payroll at about $175 million, they still need to re-sign two marquee players, Curtis Granderson and Robinson Cano, to contract extensions before they hit free agency after the 2013 season. The problem is that they need to keep the payroll at or below $189 million from 2014-2016 to avoid heavy luxury tax fees. However, there is a way in which they can re-sign Granderson and Cano and keep a trimmed payroll.

Granderson is set to make $10 million in 2012 and, assuming he has another year like last year, he will want more money.  His batting average was only .262, but he hit 41 home runs and led the American League in RBI and Runs scored. The Yankees should offer him a deal for five years at about $16 million per year, a $6 million raise from his 2012 salary. This brings the payroll up to $181 million.

Cano, who is a bit more valuable than Granderson based on his numbers, is set to make $14 million in 2012, and will also definitely want more money. He hit .302 with 28 home runs and 118 RBI, one behind Granderson, in 2011. My offer to Cano would be for eight years at $21 million per year. This deal would be almost identical to the one Matt Kemp signed with the Los Angeles Dodgers earlier this offseason.

Assuming both players agree, the payroll would jump to $188 million, which would leave them with only $1 million to spend. This would force them to let right fielder Nick Swisher walk when his contract ends after 2012. If they let Swisher go, they will free up $10.25 million and bring the payroll to $177.75 million.

Also, if Mariano Rivera retires after 2012, as he has said he may do, and Rafael Soriano activates his opt out clause, that will free up another $26  million, $15 million for Rivera and $11 million for Soriano.