Yankees owner sends warning that could loom large in Juan Soto contract talks
The New York Yankees have expressed a strong interest in retaining outfielder Juan Soto beyond the 2024 season. However, this desire could be complicated by a key objective stated by owner Hal Steinbrenner.
Steinbrenner announced that the team’s current payroll levels are not financially sustainable and indicated a desire to avoid exceeding the luxury tax threshold in the future.
“I’m gonna be honest, payrolls at the levels we’re at right now are simply not sustainable for us financially,” Steinbrenner said, via 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.”
Despite this, Steinbrenner hinted that the Yankees might manage to keep Soto due to expiring contracts that will reduce payroll after the 2024 season. While he did not specify, players like Gleyber Torres and Alex Verdugo, who together earn nearly $23 million this season, might be among those he refers to. In contrast, Soto’s salary is $31 million this season.
The Yankees began the 2024 season with a payroll exceeding $296 million. For 2025, they have about $185 million committed, with the luxury tax threshold set at $241 million. This leaves approximately $56 million available if they intend to remain under that threshold.
Balancing both goals presents significant challenges. Soto is expected to command a substantial contract, likely consuming a large portion of the available funds. While the Yankees could potentially afford him, they would need to make sacrifices in other areas, potentially weakening the team at various positions and leaving minimal room for additional upgrades.
While both Steinbrenner and Soto have expressed optimism about a long-term relationship, these financial constraints raise doubts about the feasibility of such an arrangement. The Yankees will need to navigate these financial challenges carefully to retain Soto while maintaining a competitive roster.