The Yankees’ current payroll, just over $300 million, is not sustainable long-term, regardless of Juan Soto’s future in The Bronx. Hal Steinbrenner reiterated this at the MLB owners meetings, despite praising Soto and describing the team as “championship caliber.”
“I’m gonna be honest, payrolls at the levels we’re at right now are simply not sustainable for us financially,” Steinbrenner said. “It wouldn’t be sustainable for the vast majority of ownership [groups], given the luxury tax we have to pay.”
However, Steinbrenner assured that this doesn’t mean the Yankees can’t afford Soto, who will hit the free agent market for the first time this offseason. “We’ve got a considerable amount of money coming off [next offseason],” Steinbrenner said. “We didn’t have a considerable amount of money coming off last offseason, which is why we’re at where we’re at.”
According to Spotrac.com, the Yankees’ payroll is at $305 million in 2024, with $202 million already committed for next year. They rank second to the Mets in payroll.
Players like Gleyber Torres ($14.2 million) might not return, but the Yankees still need to clear more space for Soto, who is earning $31 million this season. Gerrit Cole can opt out after this season, but the Yankees can negate that by adding another year at $36 million. Anthony Rizzo has a $17 million club option with a $6 million buyout. Other potential free agents include Alex Verdugo ($8.7 million), Clay Holmes ($6 million), Tommy Kahnle ($5.7 million), and several relievers set to earn $8.4 million combined.
Steinbrenner emphasized he doesn’t want to simply replace all the money coming off this year’s payroll onto next year’s. “I don’t believe I should have a $300 million payroll to win a championship,” he said. “I believe I need a good mix of veterans, who are gonna make a lot more money, but also we’ve put a lot of money into our player development system in the last 5-10 years. And in my opinion, we have one of the better ones in baseball now.”
He highlighted the contributions of young players like Anthony Volpe and Luis Gil, and future prospects like Jasson Dominguez. “As they get ready, they’re gonna continue to get their chances, just like Volpe did and Austin Wells did and Gil and others,” Steinbrenner said. “I believe being younger makes you faster, and I also believe, whether I’m right or not, it makes you less injury-prone. They’re gonna get their opportunities.”
Steinbrenner also expressed satisfaction with the rotation’s performance, particularly in Cole’s absence due to elbow inflammation. “The biggest pleasant surprise has been the pitching, the starting rotation,” he said. “We came in with concerns: What [Carlos] Rodon would we get? Can Nestor [Cortes] stay healthy? Luis Gil? And they’re the reason we’re at where we’re at, because the offense did struggle a little bit for a month.”
The combination of Soto and Aaron Judge has sparked the offense, with both staying healthy. “I had no doubt Juan Soto would perform in New York,” Steinbrenner said. “The market, the pressure, none of that was gonna be a problem. [It was]: How would he interact with the fans, how would he interact with [the media], how would he interact with his teammates? Those were the three questions I had, and he’s been great on all three.”