The only penalty point the Yankees likely care about is the $246 mil threshold -- that's when they not only pay a tax, but their first 2020 draft pick is dropped 10 spots too. The Red Sox had that happen to them this year, although they'd probably say it was worth it given their 2018 results. Looks like Encarnacion only adds about $3.4 mil to the Yankees luxury tax payroll for 2019: https://twitter.com/Joelsherman1/status/1140074291117121537 I find Cot's Contracts to be way better than Spotrac. Cot's has them still about $14 mil under $246 mil, even after Encarnacion, so they should have room to add pitchers like Bumgarner yet in 2019: https://docs.google.com/spreadsheets/d/1ai3Wo4UVZbUFtEEOnVEUwBgh2H45wwNe4nd6bXPAvRQ/pubhtml After 2019, it's still a little tight, although they'll shed about $40.5 mil in departing free agents too, none of whom look like likely re-signs (primarily Gregorius, Sabathia, Gardner, and Betances). That could mean they are ~$54 mil under the $246 mil threshold, in which case they should be able to fit arb raises for Judge, Sanchez, and Paxton, plus a bigger FA signing if they want (although they haven't been that aggressive on that end of FA lately anyway). Then they'll get another $43 mil off the books from Tanaka and Ellsbury after 2020, and perhaps another $17 mil if Happ's option doesn't vest.