Hal Steinbrenner Seeks to Reduce the Yankees’ Payroll for 2026
The Yankees owner, Hal Steinbrenner, has expressed his desire to reduce the team’s payroll for the 2026 season, although he acknowledged that it is very early in the offseason to determine a specific range. Steinbrenner mentioned that he would prefer the figure to decrease from the $319 million that, he said, 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 as they were eliminated by the Toronto Blue Jays in the American League Division Series. Steinbrenner emphasized that the disappointing result was not the responsibility of manager Aaron Boone, whom he described as 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 pattern in recent years, which ultimately cost the Yankees the American League East Division title, a direct pass to the American League Division Series, and home-field advantage against the Blue Jays. Steinbrenner noted that mental errors, particularly base-running mistakes, were a problem and led to the firing 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 over $700 million in revenue this year.“Would it be ideal if [the payroll] went down? Of course. But, does that mean it’s going to 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: “Nobody spends more money, I believe, on player development, scouting, and performance science. All this starts to add up. If you want to see the revenue, you have to try to figure out the expense side as well. You might be surprised.” According to Cot’s Baseball Contracts, the Yankees are projected to have a payroll of $278.1 million. This includes a projection of $18.7 million for the Competitive Balance Tax, being more than $34.1 million above the $244 million threshold. The Yankees’ transactions this offseason so far include offering center fielder Trent Grisham the one-year, $22.05 million qualifying offer; signing veteran left-handed pitcher Ryan Yarbrough to a one-year, $2.5 million contract; and non-tendering five relievers, including right-handers Mark Leiter Jr. and Ian Hamilton. Steinbrenner highlighted 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,” Steinbrenner said. “Everyone wants to talk about revenue. They need to talk about our expenses, including the $100 million we have to pay to the city of New York every February 1st, including the COVID year. It all starts to add up quickly.”
Hal Steinbrenner
The Yankees, who have exceeded the CBT threshold for the last four seasons, finished with the third-highest CBT payroll in the majors in 2025, behind the Los Angeles Dodgers and the New York Mets. However, the Dodgers 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 set to expire 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. “Look, there are fan groups in different areas, including my hometown, here in Tampa, who, and I’ve addressed this before, come to spring training games thinking their team has little chance of making the playoffs,” Steinbrenner said. “Or at least little chance of going far in the playoffs. And those fans would argue that that’s not good for baseball as a whole. And, you know, it’s a valid argument. Whether it’s true or not, it’s a valid argument.”“We can talk before [Cashman] goes to [the] winter meetings about a range,” Steinbrenner said. “But as it’s a fluid situation, that range can disappear in two seconds if an agreement comes up that I think would be very beneficial for some area of need that we have.”
Hal Steinbrenner
