Yankees today announce that they have re-signed Derek Jeter to a one-year, $12 million contract for the 2014 season.Well I guess that answers that question about whether Jeter was going to exercise his player option or not. Turns out he didn't have to because the team just announced that they've re-signed him to that new 1-year deal referenced above.
— Yankees PR Dept. (@YankeesPR) November 1, 2013
I don't really know what to say about this. On the surface it doesn't make sense to add money to next year's payroll when the team didn't have to. Jeter's 2014 option was for $9.5 mil and I was under the impression that as an option year that value would stand alone in terms of AAV. I'm sure the Yankees know what they're doing and an explanation will come out, but for now this comes as a surprise.
** UPDATE 12:28 PM- Via Mark Feinsand, this new deal actually saves the Yankees a few bucks in terms of AAV. Triggering the option year would have made his AAV $14 mil for next year based on the whole contract. By wiping that out and going with the new 1-year, $12 mil deal, the Yankees save $2 million towards the luxury tax. Pretty shrewd move on their part. **
** UPDATE 1:02 PM- Via Andrew Marchand, this new deal came as a result of Jeter and Hal having direct conversations. Once again, Cash left out of the decision-making mix. **