Skip to content

Steinbrenner: Current payroll levels 'not sustainable'

Dustin Satloff / Getty Images Sport / Getty

Amid ongoing discussions regarding the price of a potential Juan Soto extension, New York Yankees owner Hal Steinbrenner tempered expectations for the team's payroll moving forward.

"I'm gonna be honest: Payrolls at the levels we're at right now are simply not sustainable for us financially," he told Dan Martin of 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' adjusted payroll total for this season sits at $305 million, according to Spotrac. That figure is more than $60 million over MLB's Competitive Balance Tax (CBT) threshold of $237 million for 2024.

MLB's current CBT system punishes teams for exceeding the threshold on both an annual and incremental basis. Teams pay a 20% tax on all overages in their first year, 30% in their second consecutive year, and 50% in their third. Additional surcharges are imposed on overages exceeding $20 million, further increasing at $40 million and $60 million.

The Yankees have exceeded the allowable CBT threshold for three consecutive seasons but could reset the annual penalty by lowering payroll below the CBT threshold of $241 million in 2025.

"I don't believe I should have a $300-million payroll to win a championship," Steinbrenner added.

"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 five-to-10 years."

The club has $202 million worth of contracts already on the books for next season.

Daily Newsletter

Get the latest trending sports news daily in your inbox