The New York Yankees signed Max Fried to the biggest contract ever given to a left-handed pitcher. His eight-year deal worth $218 million was the first domino in Brian Cashman's Plan B after losing Juan Soto. It was not an easy negotiation, however, as there was a big competitor. The Athletic's Ken Rosenthal reported that the Yankees gave Fried an extra year to outbid the Texas Rangers, and it has nothing to do with baseball.

Before agreeing with Eovaldi, the Rangers even made a run at free-agent left-hander Max Fried, offering him a seven-year, $190 million deal, according to Joel Sherman of the New York Post…But the lack of state income tax in Texas increased the contract’s potential value, forcing the New York Yankees to go eight years, $218 million to land Fried.

The income tax issue has popped up in all different sports. Earlier this week, Buffalo Sabres general manager Kevyn Adams made headlines for admitting his team struggles because they are in a tax state. Juan Soto's contract featured a $75 million signing bonus to help mitigate taxes because he is a Florida resident. The Yankees paid up to eliminate that negative.

The Yankees are still looking to make moves this offseason. Where could they go from here? And how do the Rangers bounce back from losing Max Fried?

Yankees and Rangers move on from Max Fried's decision

Atlanta Braves pitcher Max Fried (54) throws during the first inning of game two in the Wildcard round for the 2024 MLB Playoffs against the San Diego Padres at Petco Park.
Denis Poroy-Imagn Images

While the Yankees should be thrilled they added the market's best lefty, they must move forward. They have lost their starting right fielder, left fielder, first baseman, and second baseman from the World Series lineup. Offense is key and Christian Walker could be a great fit. A first baseman did not hit a home run after July 31 for the Bombers.

A pair of Astros, Kyle Tucker and Alex Bregman, are connected to the Yankees. They both fit needs offensively and defensively and would heighten the Houston/New York rivalry. But the state income tax issue may come up here as well, with both players coming from Texas.

The Rangers were disappointing in 2024 considering their World Series title the year before. They brought back Nathan Eovaldi after losing out on Fried, which helps their rotation. Max Scherzer is a free agent but rookie Kumar Rocker is expected to join the MLB club. They don't need pitching, so the Yankees are not a trade candidate.

The Yankees and Rangers could be going after similar players, with Chicago Cubs' outfielder Cody Bellinger at the top of the list. If one of these teams makes that trade, it could swing the power dynamic in the American League.