BREAKING: Yankees To Cut Ties With $40 Million All-Star Amid Payroll Concerns

The New York Yankees have consistently invested heavily to strengthen their roster, but their $300 million payroll was deemed “not sustainable” by owner Hal Steinbrenner during the owners’ meetings on May 22.

“To be frank, maintaining payrolls at our current level is financially unsustainable,” Steinbrenner stated, as reported by the New York Post. “This would be unmanageable for most ownership groups, especially considering the luxury tax.”

This winter, the Yankees face a significant financial decision with Juan Soto’s free agency, which will not come cheap. If Steinbrenner aims to retain Soto while reducing payroll, some tough choices will need to be made.

“Given the Yankees’ apparent commitment to cost-saving measures where possible, Rizzo might be sacrificed in the pursuit of Soto,” wrote Chris Kirschner of The Athletic in his analysis of the Yankees’ payroll.

Rizzo’s Contract

“The Yankees have a $17 million club option on Anthony Rizzo for 2025,” wrote Kirschner. “If declined, he’ll receive a $6 million buyout. Picking up the option would set the Yankees’ hypothetical payroll at $237.12 million.”

Rizzo signed a two-year, $40 million contract before the 2023 season. Despite struggling in 2023, it was revealed he had been dealing with a lingering injury.

Last season, Rizzo hit just .244 due to an injury that persisted throughout the season. In 2023, he was diagnosed with post-concussion syndrome, believed to be caused by a May 28 collision with the Padres’ Fernando Tatis Jr., according to MLB.com’s Bryan Hoch on August 3.

Rizzo’s performance for the remainder of the season will influence the Yankees’ decision on his option. He is slashing .245/.309/.368 in 2024. However, regardless of his performance, he will not be the Yankees’ top priority this offseason.

“He’ll be 35 next season, a year younger than LeMahieu. But everything this offseason revolves around Soto,” wrote The Athletic’s Brendan Kuty. “If the Yankees prioritize saving money at first base to allocate it to Soto, 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 Yankees’ current payroll is just over $315 million, according to Spotrac. With Soto’s potential deal likely to be one of the largest in history, the Yankees will need to make moves to lower their 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,” Steinbrenner explained.

Aside from Soto, the Yankees will see other significant players become free agents, including Gleyber Torres, Clay Holmes, Alex Verdugo, Tommy Kahnle, Jonathan Loáisiga, and Caleb Ferguson.

Soto will likely demand a record-setting contract when he signs. He set a record for an arbitration-eligible player with his $31 million contract this offseason. Tim Britton of The Athletic projects a 14-year, $540 million contract for Soto.

Signing Soto will likely require more than the 15-year, $440 million extension he turned down from the Washington Nationals, according to MLB.com’s Jessica Camerato. Rizzo is just one of many tough decisions the Yankees will have to make.