Yankees Complain About Payroll While AL East Rivals Add Talent This Offseason

Here's what has happened in the AL East so far this offseason.

The Boston Red Sox traded for right-hander Sonny Gray.

The Toronto Blue Jays signed free-agent starter Dylan Cease.

The Baltimore Orioles traded for slugger Taylor Ward, and signed free-agent closer Ryan Helsley.

The New York Yankees complained about payroll for 2026 because it's more expensive to run a Major League Baseball team than most people realize, owner Hal Steinbrenner said earlier this week.

Steinbrenner said club payroll was $319 million in 2025, when the Yankees finished in second place in the AL East, losing a tiebreaker with the Blue Jays, and later falling to Toronto in the ALDS. When you spend all that money and don't win the World Series, which the Yankees haven't since 2009, it apparently leaves a bad taste.

"Would it be ideal if I went down (in payroll)? Of course," Steinbrenner said in a media conference. "But does that mean that's going to happen? Of course not."

At least Steinbrenner has a loose grip on reality. Also: Revenues for the Yankees reportedly exceeded $700 million in 2025.

"Everybody wants to talk about revenues," Steinbrenner said. "They need to talk about our expenses, including the $100 million expense to the City of New York that we have to pay every Feb. 1, including the COVID year. It all starts to add up in a hurry."

The Yankees funded the construction of Yankee Stadium in part using municipal bonds and tax breaks. The Yankees cover their end of the costs with the payments to New York City that Steinbrenner referenced. Only, they're reportedly closer to $84 million, not $100 million. Hey, that $16 million difference could bring over an elite relief pitcher!

But it's not just raw payroll that's so costly, Steinbrenner said.

"Nobody spends more money, I don't believe, on player development, scouting, performance science. These all start to add up," Steinbrenner said. "If you want to go look at the revenues, you got to somehow try to figure out the expense side as well. You might be surprised."

You heard it right. The richest team in MLB does not actually turn a profit, contrary to what the media or fans say. Won't anybody think of the Yankees profit margin?

MLB owners have a history of saying things like this. Creative accountants and effective tax attorneys can make any owner seem like they're telling the truth when they cry broke. Even Hal's father, George Steinbrenner, used to say things like this from time to time.

When his group bought the Yankees in 1973, they paid a net price of $8.7 million. Forbes today values the Yankees at $8.2 billion -- that's a "B" for Bernie Williams. So the Yankees probably are turning a profit. Maybe it's not all liquid; much of the team's value can only be realized by selling it. But it's still disingenuous to say the Yankees aren't profitable.

It's also disingenuous to say all the Yankees have done this offseason is complain about having to spend money. They actually did spend some, re-upping with outfielder Trent Grisham after he accepted the free-agent qualifying offer. Maybe that's what Hal is so sore about, aside from the five-year-old payment to the city.

AL East opponents: adding talent.
Yankee Stadium: Still not free.
Trent Grisham: Wants to be paid.

It has to be tough being born into such dire circumstances.