The New York Yankees have not shied away from spending in order to build their roster. However, the Yankees’ $300 million payroll was described as “not sustainable,” by owner Hal Steinbrenner during the owners meetings on May 22.
“I’m gonna be honest, payrolls at the levels we’re at right now are simply not sustainable for us financially,” Steinbrenner said, according to the New York Post. “It wouldn’t be sustainable for the vast majority of ownership [groups], given the luxury tax we have to pay.”
The Yankees have a big financial decision looming this winter with Juan Soto’s free agency. Soto will not be cheap. If Steinbrenner is looking to keep Soto and reduce the payroll some tough decisions will have to be made.
“Because the Yankees seem committed to saving money in spots they can, Rizzo may become a casualty of the team’s Soto pursuit,” The Athletic’s Chris Kirschner wrote while breaking down the Yankees’ payroll.
Rizzo’s Contract
“The Yankees have a $17 million club option on Anthony Rizzo in 2025,” wrote Kirschner. “If declined, he’ll be owed a $6 million buyout. If they choose to pick it up, that would put the Yankees’ hypothetical payroll at $237.12 million.”
Rizzo signed a two-year, $40 million deal before the 2023 season. Rizzo struggled in 2023, but was dealing with a lingering injury.
Last season, Rizzo hit just .244 after dealing with an injury for most of the season. In 2023, Rizzo was diagnosed with “post-concussion syndrome, which the club believes stems from a May 28 collision with the Padres’ Fernando Tatis Jr.,” according to MLB.com’s Bryan Hoch in an August 3 story.
Rizzo’s production for the rest of the season will have an impact on whether or not the Yankees pick up his option. He is slashing .245/.309/.368 in 2024. However, regardless of how Rizzo finishes the season, he is not going to be the Yankees’ top priority this offseason.
“He’ll play next season at age 35 — a year younger than LeMahieu. But everything this offseason needs to be seen through the lens of Soto,” wrote The Athletic’s Brendan Kuty. “If the Yankees think saving money at first base and shifting it to Soto is a bigger priority, then all bets are off.”
Soto’s Contract’s Impact on Yankees’ Payroll
“I don’t believe I should have to have a $300 million payroll to win a championship,” said Steinbrenner.
The Yankee’s current payroll is just over $315 million, according to Spotrac. Soto’s deal will likely be one of the largest deals in history. It isn’t hard to see that the Yankees will need to make some moves to lower the payroll.
“We have a considerable amount of money coming off. We didn’t have a whole lot of money coming off last offseason, which is why we’re at where we’re at,” said Steinbrenner.
The Yankees will see some big names hit free agency outside of Soto. Glayber Torres, Clay Holmes, Alex Verdugo, Tommy Kahnle, Jonathan Loáisiga and Caleb Ferguson will all be free agents after the season.
Soto will likely demand a record-setting payday when the time for him to sign does come. Soto signed a $31 million contract this offseason, setting the record for an arbitration-eligible player. Tim Britton of The Athletic has projected a 14-year, $540 million contract for the outfielder.
Whatever it takes to sign Soto will likely need to be more than the 15-year,$440 million extension he turned down from the Washington Nationals, according to MLB.com’s Jessica Camerato. Rizzo is one of many tough decisions the Yankees will have to make.
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Yankees Could Cut Ties With $40 Million All-Star Amid Payroll Concerns