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 to see a decrease compared to the $319 million the team spent on player salaries in 2025.The Yankees haven’t won 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 due to manager Aaron Boone, whom he called a “good manager in many of the things he has to do,” but rather to the players for not performing in October. He lamented the team’s mid-season problems, a recurring pattern in recent years, which ultimately cost them the American League East Division title and the home-field advantage against the Blue Jays. Steinbrenner noted that mental errors, particularly errors in base running, were a problem that led to the firing of first base coach Travis Chapman. He also questioned the idea that the Yankees made a profit in 2025, suggesting they lost money after Forbes reported that the franchise generated more than $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 that the team’s expenses are significant, including a $100 million investment for the city of New York that they must pay every February 1, even during the COVID pandemic year. He also highlighted investments in player development, scouting, and performance science. According to Cot’s Baseball Contracts, the Yankees have a projected payroll of $278.1 million, which includes a tax of $18.7 million for exceeding the $244 million Competitive Balance Tax threshold. 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 evaluating their options in left field, which includes re-signing Cody Bellinger, one of the most prominent 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. Steinbrenner said he believes there is a “weak correlation” between spending more money and winning championships. He reiterated that he “would consider supporting a salary cap only if it is accompanied by a floor”, depending on the figure.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
