The Yankees are venturing into the land of a $300 million payroll for luxury tax purposes.
After agreeing to terms on Thursday night with Marcus Stroman on a two-year, $37 million contract, the Yankees are now projected to surpass a $300 million luxury tax payroll for the first time in franchise history — barring further trades.
Amidst an offseason in which they have added Juan Soto (who will earn a record $31 million in his final year of arbitration), Trent Grisham and Alex Verdugo via trades and now Stroman through free agency, the Yankees’ projected competitive balance tax payroll stands at $304.3 million, per Cot’s Contracts.
That is currently the third-highest projected CBT payroll, behind the Mets ($319.4 million) and Dodgers ($307.2 million).
The fourth and highest luxury tax threshold — often dubbed the “Steve Cohen Tax” — for 2024 is $297 million, which means the Yankees are currently estimated to be on the hook to pay $48.4 million in taxes.
The Yankees ended slightly above the highest tax threshold in 2023 (when it was $293 million), according to the Associated Press, paying $32.4 million in taxes.
Hal Steinbrenner has said in the past that a team should not need a $300 million payroll to win a championship, but the Yankees managing general partner appears to be willing to take that plunge this season.
It’s possible the Yankees will continue to add to their 2024 payroll for another arm, either for the rotation or bullpen.
If they were trying to find a way to cut back on their payroll, Gleyber Torres and his $14.2 million salary could be moved, though doing so would hurt the Yankees’ offense.
