In the short term, 2014 specifically, they lost a 6-8 WAR player who would have cost 3-4 million per WAR, about 1/2 the FA market value. Their fears of what might be in 8-10 years blinded them to the benefits they would receive in the short term (paying 24 million for a player who produces 35-40 million). While the goal of 189 is more achievable, the mandate of 189 and being a competitive team, or just a competitive team just became harder (especially when they spent an extra 18 million WAR by going after the most expensive options at C and CF and giving Jeter a raise)
Sure, the contract would not have been very productive at the end, but what would 24 million AAV be worth in 8 years, and would it be that painful if you had some cost controlled talent to subsidize it (and were under the LT threshold and collecting RS rebates)? Isn't that the problem with Arods contract? If they had several good cost controlled players providing another 15 WAR for well below market value (say 10 million in total salary for that 15 WAR) they would have no problem. But they have to go out and spend 75 -100 million for that 15 WAR now.
Not the end of the world if they recover the lost WAR with other free agents and then tackle the pitching, but as it stands now they look like a 500 team unless they get huge bounce back seasons from aging and declining players like Jeter, Teixeira, Ichiro, CC, Kuroda and add another starter and pieces for the pen. I would not bet on most of those players having big seasons.
