Hal Steinbrenner warns of lower payrolls after 2024: 'Simply not sustainable for us financially'

soxhop411

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Don’t get used to seeing the Yankees with the payroll they have this season — just north of $300 million — going forward, whether Juan Soto is in The Bronx or not.

With Hal Steinbrenner again singing Soto’s praises at MLB Headquarters in Midtown on Wednesday at the owners meetings, saying that the team is “championship caliber,’’ the owner added their current payroll is “not sustainable.”

“I’m gonna be honest, payrolls at the levels we’re at right now are simply not sustainable for us financially,’’ Steinbrenner said. “It wouldn’t be sustainable for the vast majority of ownership [groups], given the luxury tax we have to pay.’’

“We’ve got a considerable amount of money coming off [next offseason],’’ Steinbrenner said. “We didn’t have a considerable amount of money coming off last offseason, which is why we’re at where we’re at.”

At this point, according to Spotrac.com, the Yankees are at $305 million in 2024, with $202 million already set for next year.

Gleyber Torres, at $14.2 million, is among those who might not be back, but they’ll have to open more space for Soto.

And Steinbrenner made it clear that he doesn’t want to replace all the money on this year’s payroll on next year’s docket.
“I’ve been a broken record [on this topic]: I don’t believe I should have a $300 million payroll to win a championship,’’ Steinbrenner said. “I believe I need a good mix of veterans, who are gonna make a lot more money, but, also, we’ve put a lot of money into our player development system in the last 5-10 years. And in my opinion, we have one of the better ones in baseball now.”

He pointed to the contributions made by Anthony Volpe and Luis Gil, as well as future additions like Jasson Dominguez, who is on a rehab assignment after last year’s elbow surgery to repair a torn UCL.
https://nypost.com/2024/05/22/sports/hal-steinbrenners-payroll-plan-complicates-juan-sotos-yankees-future/?utm_campaign=nypost&utm_medium=social&utm_source=twitter


Feels like the Luxury tax penalties are making pretty much every MLB team behave as if there is a salary cap in place
 

HfxBob

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https://nypost.com/2024/05/22/sports/hal-steinbrenners-payroll-plan-complicates-juan-sotos-yankees-future/?utm_campaign=nypost&utm_medium=social&utm_source=twitter


Feels like the Luxury tax penalties are making pretty much every MLB team behave as if there is a salary cap in place
I disagree to an extent. 8 teams paid tax for 2023, forking over a total of just over $200 million, both records.

But the penalties are onerous and they certainly have a big impact on spending, as they were designed to.
 

Harry Hooper

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It's a foolish move for any MLB owner to talk up how comparatively little the young players are costing them.
 

jon abbey

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I think the subtext here is about guys like Torres and Verdugo, people will whine when NY lets them leave this winter, but it makes no sense for NY to pay them. The thing about NY specifically is they have a lot of youth waiting to step in, even if Soto goes elsewhere, they have Dominguez and Spencer Jones on the way (not saying that is an adequate replacement, but it's not Billy McKinney and Jake Bauers).
 

jon abbey

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But yeah, you don't sign guys like Snell or Montgomery when Schmidt and Gil can step up and outperform both for a fraction of the price.
 

BaseballJones

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But yeah, you don't sign guys like Snell or Montgomery when Schmidt and Gil can step up and outperform both for a fraction of the price.
Or Houck or Crawford doing the same for Boston. Not that anyone knew they'd do this but still.

To your point:

Snell: 11.2 ip, 11.57 era, 1.97 whip, $32m
Montgomery: 34.1 ip, 4.98 era, 1.37 whip, $25m
Schmidt: 55.2 ip, 2.59 era, 1.13 whip, $2.02m
Gil: 49.0 ip, 2.39 era, 1.08 whip, league min
Houck: 65.0 ip, 1.94 era, 0.95 whip, league min $
Crawford: 58.0 ip, 2.17 era, 1.14 whip, league min $
 

jon abbey

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Not that anyone knew they'd do this but still.
Agreed, but you never know until guys get a chance.

I said at the deadline in 2022 that one of the big reasons (there were others) that NY traded Montgomery was to better open up a spot for Schmidt. He made 32 starts for NY in 2023 and now seems to have taken the next step, and he is under control through 2027.
 

BaseballJones

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Agreed, but you never know until guys get a chance.

I said at the deadline in 2022 that one of the big reasons (there were others) that NY traded Montgomery was to better open up a spot for Schmidt. He made 32 starts for NY in 2023 and now seems to have taken the next step, and he is under control through 2027.
Yep, you did. Meanwhile, I said Crawford was going to be good for Boston. I didn't know he'd be this good, and I was also pining for Montgomery, but as of this moment, I suppose I'm glad they didn't sign him. Though I still think he's going to end up better than Criswell, and given their rotation injuries, they probably need more starting pitching. But still, your point is well taken.
 

BigSoxFan

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I think the subtext here is about guys like Torres and Verdugo, people will whine when NY lets them leave this winter, but it makes no sense for NY to pay them. The thing about NY specifically is they have a lot of youth waiting to step in, even if Soto goes elsewhere, they have Dominguez and Spencer Jones on the way (not saying that is an adequate replacement, but it's not Billy McKinney and Jake Bauers).
Will people really whine about Gleyber? He’s making this an easy decision even if payroll weren’t a concern.
 

jon abbey

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Will people really whine about Gleyber? He’s making this an easy decision even if payroll weren’t a concern.
The current Yankee fan base may be the single stupidest fan base in sports history. They will whine if they let him go, they will whine if they re-sign him, they will whine if NY doesn't go 162-0.
 

jon abbey

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Yep, you did. Meanwhile, I said Crawford was going to be good for Boston. I didn't know he'd be this good, and I was also pining for Montgomery, but as of this moment, I suppose I'm glad they didn't sign him. Though I still think he's going to end up better than Criswell, and given their rotation injuries, they probably need more starting pitching. But still, your point is well taken.
Yeah, it's really an opportunity thing sometimes.

I recounted this elsewhere recently, but NY went fairly hard trying to sign Verlander in winter 2021. He ended up going back to HOU, but if NY had signed him, he would have bumped Nestor Cortes from the rotation, even though Cortes had been superb down the stretch in 2021. But since NY didn't sign him, Cortes stayed in the rotation and had a fantastic year, making the All-Star game and winning the deciding game 5 of the ALDS on 3 days rest.

Or last year, NY was out of it down the stretch and low on SPs, so they decided to finally give Michael King a legit chance as a SP. He was so good (1.88 ERA in 38 innings) that NY was able to spin off his two remaining years of control as the primary chip for a year of Juan Soto.
 

j-man

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yankee owner cant while about this its your biggest edge this is all about force guys to take a cap when the cap is crap the only thing feglar right on and their is no exurue not to sign soto without him the yankees are a 85-win team with him they are a 95 win team this is why the red sox have been loseing because your owner in boston wants to be kc or pitt
 

jon abbey

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Hal is happy to pay Soto if Soto allows him to do so, he said that in a different statement in the past week. This is about the next tier of guys like Verdugo and Gleyber and he is right to not want to pay them, given the current system.
 

6-5 Sadler

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Any read through to how they’ll handle the Cole opt in/opt out decision this winter? Assuming he returns next month and looks like his normal self, what are the odds he opts in/opts out and the Yankees pick up the 5th year/opts out and goes somewhere else? 25/60/15? I think that middle number would be a few ticks higher if not for Cole’s injury, Hank’s comments, and the performance of the starters this year.
 

jon abbey

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Any read through to how they’ll handle the Cole opt in/opt out decision this winter? Assuming he returns next month and looks like his normal self, what are the odds he opts in/opts out and the Yankees pick up the 5th year/opts out and goes somewhere else? 25/60/15? I think that middle number would be a few ticks higher if not for Cole’s injury, Hank’s comments, and the performance of the starters this year.
I would say the same as I've said since last winter, hard to imagine many scenarios where he doesn't opt out and NY doesn't add the additional year to keep him, so I will say 2/96/2. I could see them trading Cortes though, he is a FA after 2025.
 

jon abbey

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Any read through to how they’ll handle the Cole opt in/opt out decision this winter? Assuming he returns next month and looks like his normal self, what are the odds he opts in/opts out and the Yankees pick up the 5th year/opts out and goes somewhere else? 25/60/15? I think that middle number would be a few ticks higher if not for Cole’s injury, Hank’s comments, and the performance of the starters this year.
Sorry for responding twice, this is actually a good question the more I think about it, but I really think the Steinbrenner comments are about paying non-superstars. Cole has really helped the current rotation while he has been out, he has more energy to focus on others since he has not been pitching and he has been very hands-on, with Gil and Schmidt and Rodon particularly.