Hal Steinbrenner Seeks to Reduce the Yankees’ Payroll for 2026
Yankees owner Hal Steinbrenner has expressed his desire to reduce the team’s payroll for the 2026 season, although he acknowledged that it is too early to determine a specific range. Steinbrenner mentioned that he would prefer the figure to decrease from the $319 million that, according to him, the team spent on player salaries in 2025.The Yankees haven’t achieved a championship in 16 consecutive seasons, a streak that extended this year after being eliminated by the Toronto Blue Jays in the American League Division Series. Steinbrenner emphasized that the disappointing result was not the fault of manager Aaron Boone, whom he called a “good manager in many of the things he has to do,” but rather the players for not performing in October. He lamented New York’s mid-season problems, a recurring pattern in recent years, which ultimately cost the Yankees the title of the American League East Division, a direct pass to the Division Series, and the home-field advantage against the Blue Jays. Steinbrenner pointed out mental errors, particularly errors in base running, as a problem that led to the dismissal of first base coach Travis Chapman. He also questioned the notion that the Yankees made a profit in 2025, suggesting they lost money after the franchise was reported to have generated more than $700 million in revenue this year.Would it be ideal if I reduced the payroll? Of course. But, does that mean it will happen? Of course not. We want to build a team that we know could win a championship, or that we believe could win a championship.
Hal Steinbrenner
Steinbrenner added that the expenses, including the $100 million they must pay to the city of New York every February 1st, are accumulating rapidly. He highlighted the team’s investment in player development, scouting, and performance science. Currently, the Yankees have a projected payroll of $278.1 million, according to Cot’s Baseball Contracts. This includes a projected tax of $18.7 million for exceeding the $244 million Competitive Balance Tax threshold by more than $34.1 million. The Yankees’ transactions in the offseason so far include the one-year, $22.05 million qualifying offer to center fielder Trent Grisham; the signing of veteran left-hander Ryan Yarbrough to a one-year, $2.5 million contract; and the non-renewal of five relievers, including right-handers Mark Leiter Jr. and Ian Hamilton. Steinbrenner emphasized that the Yankees still “need” to add another outfielder and improve the bullpen. With Grisham’s decision, the Yankees are weighing their options in left field, which includes re-signing Cody Bellinger, one of the best free agents on the market. Steinbrenner declined to comment on the Yankees’ pursuit of Bellinger. The bullpen could also lose right-handers Devin Williams and Luke Weaver in free agency. Filling those needs would probably inflate the Yankees’ payroll. Steinbrenner said he is open to all possibilities presented to him by general manager Brian Cashman.I don’t want to get into that, but that’s not a fair or accurate statement.
Hal Steinbrenner
The Yankees, who have exceeded the Competitive Balance Tax threshold in the last four seasons, finished with the third-highest payroll in MLB in 2025, behind the Los Angeles Dodgers and the New York Mets. The Dodgers, however, were in a different stratosphere: their spending, approximately $415 million, according to Cot’s, eclipsed the spending of their peers, amplifying calls for a salary cap from fans and owners with the collective bargaining agreement expiring on December 1, 2026. The Dodgers became the first team since the Yankees in 2000 to win consecutive World Series titles, but Steinbrenner said he believes there is a “weak correlation” between spending more money and winning championships. He reiterated that he “would consider supporting a cap only if it is accompanied by a floor”, depending on the number. Steinbrenner also mentioned that there are fans who feel that their teams have little chance of making the playoffs, which, according to him, is a valid argument for considering changes to the league structure.We can talk before Cashman goes to the winter meetings about a range. But, because it’s a fluid situation, that range can disappear in two seconds if an agreement arises that I think would be very beneficial for some area of need that we have.
Hal Steinbrenner
