Jeter resigned to a one-year deal

Instead of exercising his $9.5 million player option, the Yankees re-signed  Derek Jeter to a one-year deal 
worth $12MM. Somehow this has actually saved them money. According to MLBtrade rumors by agreeing to a new deal, Jeter is no longer on his old contract, the average annual value (AAV) of which counted against the luxury tax. Had he exercised his player option, Jeter would've added $6.5MM to the AAV of his three-year, $51MM contract ($3MM of the option was guaranteed in the form of a buyout). Doing so would have raised his AAV to $14.375MM. Instead, his $12MM contract will be the number that counts against the luxury tax, thereby actually saving the Yankees $2.375MM relative to the luxury tax. If you feel confused don’t worry everybody does, either way Jeter is definitely in the fold for next season and we will just have to wait and see if it will be as a shortstop, a DH or an injured former star who plays less than 40 games. The Yankees off-season will dictate the role for Jeter next season so we will just have to wait and see.