Duval is right -- the Yankees have plenty of money ... now. But that's what makes the current situation so strange.

I think it's addressed well in this article:

http://www.nydailynews.com/sports/ba...icle-1.1215298

Even the people at the YES network and Fox Sports (which just paid a fortune for a large chunk of the YES Network) are baffled by the current Yankee austerity. And they do suggest that it will have long-term repercussions:

“If this so-called fiscal responsibility becomes a permanent policy, Fox has something to be concerned with,” one network executive said. “YES became what it is because it sells winning, superstars and the grand Yankee tradition. If two-thirds of the equation (winning/superstars) disappears, down go the ratings and revenue. The subscriber fees may stay flat, but if the product stinks those fees are not going up.”

The money that the Yankees will lose by having to pay the luxury tax in 2014 is just a pittance compared to the BILLIONS that the franchise is making at the moment. If Hank Steinbrenner's tight-fisted ways continue, it very well may wreck the Yankee money-making machine.

PS The $12 million one-year offer to Youkalis is perfectly in line with the new policy, since it comes off the books before 2014. Cleveland is apparently offering $18 million for two years. Which is the better deal?