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Jorge Castillo
TAMPA, Fla. — New York Yankees owner Hal Steinbrenner on Friday emphasized that he has not ordered his front office to drop the team’s player payroll below the highest competitive balance tax threshold of $301 million this season.
Steinbrenner, however, questioned whether fielding a payroll in that range is prudent.
“Does having a huge payroll really increase my chances that much of winning the championship?” Steinbrenner said. “I’m not sure there’s a strong correlation there. Having said that, we’re the New York Yankees, we know what our fans expect. We’re always going to be one of the highest in payroll. That’s not going to change. And it certainly didn’t change this year.”
In the wild-card era (since 1995), 21 of the 30 teams to win the World Series ranked in the top 10 in Opening Day payroll. However, just three teams since 2009, the year the Yankees claimed their last championship, have won the World Series ranked in the top three in payroll: The 2018 Boston Red Sox (first in the majors), 2020 Los Angeles Dodgers (second) and 2024 Dodgers (third).
This year, Steinbrenner said the Yankees, one of the most valuable franchises in professional sports, are currently projected to have a CBT payroll between $307 million and $308 million after a busy winter that included losing Juan Soto in free agency but adding Max Fried, Devin Williams, Cody Bellinger and Paul Goldschmidt. Cot’s Contracts, which tracks baseball salaries and payrolls, estimates the number to be $304.7 million, ranking fourth in the majors behind the Dodgers, New York Mets and Philadelphia Phillies.
The Yankees have ranked in the top three in payroll in 16 of the 17 seasons since Steinbrenner became chairman and controlling owner of the franchise in 2008. The exception was 2018, when the team finished seventh.
The team was one of the nine levied tax penalties last season — the Yankees paid $62.5 million as one of four clubs taxed at a base rate of 50% for exceeding the lowest threshold in three or more straight years — and one of four levied the stiffest penalties for surpassing the highest threshold. As a result, their first-round pick in the 2025 draft dropped 10 slots.
This season, any dollar spent over $301 million will come with a 60% surcharge.
“I would say no,” Steinbrenner said when asked whether dropping below the highest threshold is a priority. “The threshold is not the concern to me.”
The Yankees, however, have tried to trade right-hander Marcus Stroman to shed salary and perhaps allocate the money elsewhere, according to sources. Stroman is due to make $18.5 million this season, but he isn’t projected to break camp in the team’s starting rotation.
The two-time All-Star started the Yankees’ first Grapefruit League game of the year Friday against the Tampa Bay Rays, tossing a scoreless inning a week after missing the first two days of workouts and emphasizing he would not pitch out of the bullpen this season. He maintained his stance Friday.
“I haven’t thought about it, to be honest,” Stroman said after departing the Yankees’ 4-0 win. “I know who I am as a pitcher. I’m a very confident pitcher. I don’t think you’d want someone in your starting rotation that would be like, ‘Hey, I’m going to go to the bullpen.’ That’s not someone you’d want.”
Steinbrenner also reiterated that he would consider supporting a salary cap for the next collective bargaining agreement if a floor is also implemented “so that clubs that I feel aren’t spending enough on payroll to improve their team would have to spend more.”
The current CBA is set to expire after the 2026 season.