MLB Trade and Roster Rumors: New York Yankees Limited by Tight Budget

The New York Yankees may not be able to give free agent starting pitcher Yu Darvish the lucrative, long-term contract he seeks after all.

The Yankees have been eyeing Darvish for months now as they continue their search for a legitimate top of the rotation arm. However, MLB Network's Jon Morosi has reported that they don't really have much left to spend in free agency.

It's no secret that the club wants to keep their payroll under the $197 million luxury tax threshold this upcoming season so they can reset their luxury-tax obligations. Right now, the Yankees are currently sitting at around $162 million in salary commitments, which will give them around $35 million to spend.

However, Morosi has explained that this isn't accurate.

"Sources say the Yankees' tentative plan allows for another $15 million in spending this offseason — unless Cashman frees up additional payroll by trading reliever David Robertson or outfielder Jacoby Ellsbury," Morosi said in his report.

"Under baseball's Collective Bargaining Agreement, the payroll calculation for the Competitive Balance Tax includes benefits, insurance and performance bonuses paid to players on the Major League roster. For the Yankees, that figure could be at least $10 million in 2018," he continued.

"Moreover, the Yankees want to allocate another $10 million to spend at the non-waiver Trade Deadline and on callups during the season," he added.

Of course, the Yankees can always swing some deals so they can have more wiggle room to sign Darvish, but as noted by Morosi, this can be risky.

As of now, it appears that the Yankees are better off signing a less expensive pitcher because they also want to add an experienced infielder like Todd Frazier.

Morosi has suggested Mike Moustakas, but they will have to give up their second- and fifth-round draft picks if they sign him since he received a qualifying offer from the Kansas City Royals. That makes this move unlikely.