Hal Steinbrenner Evaluates the Yankees’ Financial Future
The owner of the New York Yankees, Hal Steinbrenner, has expressed his desire to reduce the team’s payroll for the 2026 season, although he acknowledged that it is premature to define a specific range at this point in the offseason.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 to the players for not performing in October. He lamented New York’s mid-season struggles, a recurring pattern in recent years, which ultimately cost the Yankees the American League East Division title, a pass to the Division Series, and home-field advantage against the Blue Jays. Steinbrenner noted that mental errors, particularly errors in base running, 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 more than $700 million in revenue this year.“Would it be ideal if [the payroll] went down? Of course,” Steinbrenner said. “But, does that mean it’s going to happen? Of course not. We want to put together a team that we know could win a championship, or that we think could win a championship.”
Hal Steinbrenner
Currently, the Yankees are expected to have a payroll of $278.1 million, according to Cot’s Baseball Contracts. This includes a projected competitive balance tax of $18.7 million for being more than $34.1 million over the $244 million threshold. The Yankees’ transactions in the offseason so far include offering center fielder Trent Grisham the one-year, $22.05 million qualifying offer; signing veteran lefty 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 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 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,” 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 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 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. Steinbrenner also mentioned the importance of competitiveness in baseball and the need for teams to have the opportunity to compete, regardless of their budget.“We can talk before [Cashman] goes to the winter meetings about a range,” Steinbrenner said. “But because 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
