Akshita Patel

EXPLAINED: New York Yankees Trade Deadline Moves Could Be Influenced By “Luxury Tax”

With close to three games below the playoff wildcard spot, the New York Yankees will actively look forward to the upcoming August 1 trade deadline. As per Mark Feinsand of MLB.com, the club is seeking help at outfield, catching, and starting rotation. Moreover, multiple candidates have been linked to the franchise in the past few weeks.

However, the whole process is easier said than done. The Yankees, a $7 billion franchise, could likely face financial constraints while negotiating trade deals. The team has consistently been one of the highest-spending franchises in the league. This season, their overall payroll is just second highest to city rivals Mets. This very high payroll will pose the biggest roadblock in trade negotiations.


Yankees To Face Luxury Tax Scare At August 1 Trade Deadline!

Hal Steinbrenner is “angry” about the state of the Yankees. Charles Wenzelberg/New York Post

This year, the New York Yankees narrowly avoided going past the luxury tax threshold during the off-season. With the signing of Aaron Judge and Carlos Rodon, the club’s overall payroll touched the $293 million threshold. However, with the trade deadline approaching, the same threshold is going to be the biggest roadblock in the team’s trade plans. The Bombers were expected to be all-in buyers during the trade window for obvious reasons. However, the luxury tax will now prevent them from chasing high-priced players with significant contract obligations. Since the franchise is a second-time offender, the penalties can be substantial, impacting the team’s financial flexibility and long-term competitiveness.

That being said, there is an antidote. The Yankees will have to buy and sell at the same time to free up excess monetary space. Ken Rosenthal of The Athletic said that Yanks are currently $1.1 million above the highest luxury tax threshold of $293 million. A violation will lead to heavy tax penalties and 10 draft slots. As a result, to avoid such circumstances, the Bombers will look to sell impending free agents like Luis Severino, Isiah Kiner-Falefa, Harrison Bader, and Wandy Peralta. By this, they can free up a lot of money and stay under the luxury tax threshold. Undoubtedly, the team’s moves at the trade deadline will be influenced by this regulation. Regardless, the Yanks are still likely to buy more than sell.

Yanks Expecting Crucial Comebacks In Imminent Future

Aaron Judge, Nestor Cortes

Earlier, Yankees general manager, Brian Cashman, downplayed the hyped around the trade deadline. He said that the current roster is more than capable of ensuring a playoff spot. Moreover, the GM is anticipating the imminent return of the likes of Aaron Judge, Nestor Cortes, and Jonathan Loaisiga. The club feels these returns would certainly boost the team’s playoff chances. While Judge is making good progress, Cortes already has a rehab assignment scheduled for the weekend.

Aaron Boone, the Yankees manager, confirmed that Aaron Judge is inching closer to a return. It could be either days or a few weeks. Nonetheless, the captain will surely make a comeback in the second half, which is the need of the hour for the Yanks. They currently sit way out of the playoff race at the bottom of the East division. It could be interesting to see how the trade moves would affect the team’s campaign.