Hal Steinbrenner was quoted as saying the Yankees will stay within a $206 million dollar payroll for the upcoming season. Whether that is a “hard budget” remains to be seen, but it does pose some interesting questions with respect to the free agencies of Derek Jeter, Mariano Rivera, and most importantly, Andy Pettitte.

Using Cot’s Contracts the Yankees had an opening day payroll of $213 million this season. This number obviously increased as they took on the salaries of Kerry Wood, Lance Berkman, and Austin Kearns later in the season. For the purposes of this rudimentary payroll analysis we won’t count those three, but look at the impact of the three big free agents coming off the books, and the raises to key stars

Jeter, Rivera, and Pettitte combined for $48 million dollars in 2010. Their absence lowers the total number to $165 million dollars. I also will take away Javier Vazquez’s $11 million and that brings the Yankees payroll to $154 million. If the $206 number is correct, then the Yankees have about $52 million dollars to play with this offseason.

Cano, Swisher, and Granderson are all due raises which combine add approximately $5 million dollars, lowering the expendable payroll to $47 million. A-Rod takes a paycut of a million, but Phil Hughes and Joba Chamberlain are arbitration eligible, and probably will command a nice raise. Combined both made $1 million last year and I am sure that number will be more in the $4-5 million range. For arguments sake let’s say the Yankees expendable payroll is $42 million dollars in 2011. That leaves me with these questions:

1. How do they bring back the big three free agents and Cliff Lee?

2. How do they fit Cliff Lee, someone who is going to command $20-25 million a season, and stay within budget for at least Rivera and Jeter?

3. Is there a breaking point for Rivera and Jeter where the Yankees would say no? Is there a breaking point with Lee?

If the Yankees need payroll they could explore trading Chamberlain, Swisher, and Granderson. Perhaps they could offer Lee a lower first year salary and then escalate it in the later years of the deal. The last few big contracts (A-Rod, Teixeira, Burnett, Sabathia, Burnett) all have consistent salaries throughout the deal. I am sure that makes it far easier to project a budget and is done intentionally.

I believe the chances of Andy Pettitte coming back have declined. I also think we may some interesting twists in the negotiations with Rivera and Jeter. Better yet, have the Yankees reached their payroll threshold? Is this just temporary because of the collective bargaining? Remember, Hal isn’t his father and will more likely play politics in Bud Selig’s court. You know Selig doesn’t want payroll explosion when the league is negotiating with the Players Association.

Are my numbers perfect? No. I am doing very “quick and dirty” math.  I do know I have more questions than answers right now. What I do believe is none of the above free agents mentioned are a slam dunk to be in pinstripes in 2011.

Mike Silva is a freelance writer and radio host since March of 2007. This website is his own personal "digest" of New York Baseball He's also hosts NYBD Radio on Blog Talk Radio and 1240 AM WGBB. Check out his sports media commentary at www.sportsmediawatchdog.com. Check out his official website, www.mikesilvamedia.com

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Tags: Andy Pettitte, Cliff Lee, Derek Jeter, Hal Steinbrenner, Mariano Rivera, New York Yankees, Texas Rangers