After non-tendering Tim Mayza and Jon Berti on Friday, the Yankees saved themselves an estimated $7.8 million.
Mayza, a low-leverage reliever, was projected to make $4 million in arbitration. Berti, a versatile infielder who spent most of 2024 on the injured list, was projected to make $3.8 million.
The Yankees also came to terms on one-year deals to avoid arbitration with Trent Grisham and JT Brubaker. The team’s projected 2025 payroll is now approximately $231 million for competitive balance tax purposes, according to Cot’s Contracts.
That number is going to go up as the Yankees make moves this offseason, especially if they re-sign Juan Soto, who is looking for well over half-a-billion dollars in free agency. According to ESPN’s Buster Olney, the right fielder is expected to start receiving offers from suitors this week.
With Soto the top prize on the open market, the Yankees also have question marks at first base, second base and left field, in addition to the rotation and bullpen. Younger players, such as Caleb Durbin and Jasson Domínguez, could fill some of those holes, especially if the Yankees spend big on Soto.
But Hal Steinbrenner also acknowledged his team has several needs while reiterating his desire for a smaller payroll than the one he funded in 2024.
“We’re in a better starting position than we were a year ago,” Steinbrenner said last week at MLB’s Owners Meetings. “There’s no doubt about that. Look, year after year after year after year, payrolls similar to this year and the luxury taxes they produce are not sustainable, not feasible, and that’s the case for the vast majority of owners, and maybe all of the owners.
“Doesn’t mean in any given year I can’t do what I want to do.”
If the Yankees want to, they could clear additional salary by shopping a few veterans in trades, including Grisham, Jose Trevino and Nestor Cortes.
Last year, the Yankees had a payroll above $300 million for the first time in franchise history. For CBT purposes, the number was an estimated $314.9 million before penalties.
In 2025, the CBT thresholds are $241 million, $261 million, $281 million and, finally, $301 million. The Yankees will be taxed 50% for the first additional $20 million they spend above the first threshold, 62% for exceeding by $20-$40 million, 95% for exceeding by $40 million or more, and 110% for exceeding by $60 million or more.
While staying at or below the $301 million threshold would save the Yankees a lot of money in penalties – and could be feasible, even if Soto is retained – Steinbrenner said that he told Brian Cashman that he’s open to all proposals when it comes to acquisitions. The owner also said that he hasn’t settled on an operating budget for 2025 yet.
“We’ve got the ability to sign any player we want to sign,” Steinbrenner noted.
