HUGE CUT: Yankees Are Set to Terminate The Contract of Most Value and Fans Favourite $40 Million All-Star Amid Huge Financial And Payroll Crisis

The New York Yankees have not shied away from investing to improve their roster. However, during the May 22 owners meetings, Yankees owner Hal Steinbrenner criticized the team’s $300 million payroll as “not sustainable.”

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

The Yankees face a major financial choice this winter with Juan Soto’s free agency. Soto will not be inexpensive. If Steinbrenner wants to maintain Soto while reducing the payroll, some difficult decisions will have to be made.

“Because the Yankees appear to be committed to saving money wherever they can, Rizzo may become a casualty of the team’s Soto pursuit,” wrote The Athletic’s Chris Kirschner while breaking down the Yankees’ budget.

Rizzo’s Contract
“The Yankees have a $17 million club option on Anthony Rizzo in 2025,” Kirschner stated. “If he declines, he will be owed a $6 million buyout.” If they pick it up, the Yankees’ hypothetical salary would be $237.12 million.”

Rizzo signed a two-year, $40 million contract before the 2023 season. Rizzo underperformed in 2023, although he was battling with a long-term ailment.

Rizzo hit only.244 last season despite missing the majority of the season due to injuries. Rizzo was diagnosed with “post-concussion syndrome, which the club believes stems from a May 28 collision with the Padres’ Fernando Tatis Jr.,” according to MLB.com’s Bryan Hoch in an August 3 piece.

Rizzo’s performance for the rest of the season will determine whether or not the Yankees pick up his option. In 2024, he will slash.245/.309/.368. However, regardless of how Rizzo ends the season, he will not be the Yankees’ primary focus this offseason.

“He’ll play next season at age 35, a year younger than LeMahieu. But everything this offseason must be viewed through the prism of Soto,” The Athletic’s Brendan Kuty wrote. “If the Yankees think saving money at first base and shifting it to Soto is a bigger priority, then all bets are off.”

The impact of Soto’s contract on the Yankees’ payroll
“I don’t believe I should have to have a $300 million payroll to win a championship,” Steinbrenner stated.

The Yankees’ current payroll is little more than $315 million, according to Spotrac. Soto’s agreement is set to be one of the largest in history. It’s clear that the Yankees will need to make some payroll cuts.

“We have a lot of money coming off. We didn’t have a lot of money coming off last summer, which is why we’re where we are,” Steinbrenner explained.

Aside from Soto, the Yankees will lose other big players to free agency. Glayber Torres, Clay Holmes, Alex Verdugo, Tommy Kahnle, Jonathan Loáisiga, and Caleb Ferguson will all become free agents following the season.

When it comes time for Soto to sign, he will most likely want a record-breaking salary. This offseason, Soto received a contract worth $31 million, setting a record for an arbitration-eligible player. The Athletic’s Tim Britton has estimated a 14-year, $540 million contract for the outfielder.

According to MLB.com’s Jessica Camerato, whatever it takes to sign Soto would most certainly require more than the 15-year, $440 million agreement he turned down from the Washington Nationals. Rizzo is one of several difficult decisions that the Yankees will have to make.