Derek Jeter is coming up on 40, and after a season plagued with injury in 2013, the Yankees show faith in their captain by giving him a deal worth more than was necessary.

“It’s a mutual respect factor,” General Manager Brian Cashman said. “We know he wanted to be a Yankee and stay with the Yankees, and we respect what he’s done for this organization and particularly last year when he worked so hard and went through so much to try and come back, and going all the way back to two years ago when he literally left it all on the field in the playoffs. We felt this was the appropriate thing to do.”

According to Business Week Jeter had a player option in his contract that guaranteed him $9.5 million. He had the choice to take that, or test the free agency market. The Yankees didn't wait around for him to take the player option, but instead offere him $12 million to show their appreciation for what he has done for the organization.

“We were more comfortable not putting either side in a position where they had to make a hard decision,” Cashman said Friday, “and there was a comfort level all around doing it this way.”

NY Times reports that the Yankees have set a goal this year to keep their payroll under $189 million. They could possibly see a small increase or decrease in their luxury tax. This depends on whether the deal with Jeter is considered part of his old contract or a new one.