Shin-Soo Choo has agreed to sign a 7 year contract with the Texas Rangers worth $130 million. There were reports earlier this week that Choo had turned down a 7 year deal with the New York Yankees worth $140 million. Hence, people’s first instinct is to believe that he took a lot less money to play for the Rangers. However, Texas does not have a state income tax so in tax savings, it has been estimated the Yankees would have had to offer $147 million or another $1 million a year to have same value as the Rangers offer.

Texas has been very active since their season ended. They made a huge splash by trading second baseman Ian Kinsler to the Detroit Tigers for Prince Fielder. Everyone’s first assumption after hearing about the trade was that Detroit would use TE saved money to sign Choo. Texas took on a lot of extra money in that trade and now with signing Shin-Soo Choo, that should leave the Rangers out of a bidding war with Japanese superstar pitcher Tanaka if he gets posted.

MLB changed the posting agreement with the Japanese league this offseason. Instead of no max bid for right to negotiate and highest bid only team that player can negotiate with, there is now a max bid of $20 million and player can negotiate with any teams that are tied or highest bid. It has not been decided if Tanaka will be posted. Obviously, the Rangers believe latest rumors that his team is angry about the $20 million cap and will not post Tanaka. Texas still has plenty of work to do with pitching staff but their offense has improved. If you can’t out pitch the other team, at least try to outhit them.