The Yankees are on board with a $300 million payroll for luxury tax purposes.
The Yankees, who agreed to terms on a two-year, $37 million contract with Marcus Stroman on Thursday night, are expected to have a luxury tax payroll of more than $300 million for the first time in franchise history, barring further trades. .
During the offseason, they traded for Juan Soto (who will make a record $31 million in his final year of arbitration), Trent Grisham, and Alex Verdugo, and now they have Stroman in free agency. But the Yankees' projected competitive income tax salary is $304.3 million per Cotto's contract.
This is currently the third-highest estimated salary for CBT, behind the Mets ($319.4 million) and Dodgers ($307.2 million).
The fourth and highest luxury tax threshold for 2024, also known as the “Steve Cohen tax,” is $297 million, with the Yankees currently estimated to have to pay $48.4 million in taxes.
The Yankees finished 2023 just above the top tax threshold ($293 million at the time), paying $32.4 million in taxes, according to the Associated Press.
Hal Steinbrenner has said in the past that the team doesn't need a $300 million payroll to win championships, but the Yankees' managing general partner appears to be willing to take that plunge this season.
It's possible the Yankees continue to add another arm's 2024 salary, either in the rotation or in the bullpen.
If they are looking to find a way to reduce payroll, they could consider moving Gleyber Torres and his $14.2 million salary, but that would negatively impact the Yankees' offense. Dew.
