In examining some data on the Rangers competing against the Yankees for a high dollar free agent whose initials might be something like CL, I think there are definitely some areas the Rangers can compete against the Yanks.

Here are some factors favoring the Yanks: 

• More money
• More potential endorsements
• Better offensive support for pitchers
• Tradition

And here are some positive factors for the Rangers

• Less income tax
• More post tax spending power, less cost of living in DFW area
• For CL, closer to home
• Better defensive support
• Better bullpen support

I think it is pretty obvious that the New York Yankees have the biggest market at least as a money generating baseball franchise goes.  I also found their offense to be superior to the Rangers this year at least in the categories of OPC, RBI's and Runs scored.  Their tradition is obvious, the most championships of any other MLB franchise.  I've even indicated there may be more potential endorsement money to be made, but I think that is mainly a matter of marketing and can an expensive free agent take advantage of that market.

The Dallas-Fort Worth area has some pretty strong advantages.  The tax advantages of no income tax is pretty substantial, about $2,120,000 less than New York, New York because of state and local income tax on a annual salary of $20,000,000.  And perhaps an even stronger economic factor is the cost of living factor.  According to mysalary.com the spending power of dollars in the DFW is 39.3% greater than the New York City area on $20,000,000. That is huge!  As a matter of fact, my salary.com has information indicating that $20 million goes about as far in New York City as $12 million does in the Dallas-Fort Worth area. 

Add in the fact that the bullpen in Arlington is a little stronger (at least as far as ERA is rated), and the defense is equal or better than NYY (estimating a superior outfield, and catcher in Texas), then Texas can be fairly competitive in my opinion. 

OK, I tried to keep this post shorter than my last one.  I'm sure it is either too short,or too long, but I talk and no doubt write too much generally. 

Philar