The New York Yankees have a tough off-season coming up with generational superstar Juan Soto entering the open market with an anticipated $500 million market value. Of course, the Yanks, currently possessing the third-highest payroll in the league, wouldn’t necessarily have enough room to accommodate Soto.
However, Hal Steinbrenner, said earlier that he wishes to sign Juan Soto long term and he is even mulling to approach him with an extension deal mid-season. However, days after being confident of extension, New York Yankees managing partner has now expressed concerns on soaring payroll, by referring it to as ‘unsustainable.’
Hal Steinbrenner Says Yankees Payroll ‘Unsustainable’
The New York Yankees have long been known for their willingness to spend heavily to acquire top talent, a strategy that has brought them considerable success over the years. However, MLB put a stoppage on clubs’ spending power after they introduced the luxury tax rule a few years ago. And that’s when Yanks’ fate went crumbling down. Since the introduction of the rule, the club has constantly been violating the threshold laws and hence was subject to heavy tax penalties. Even this year, the Bronx Bombers’ payroll has soared to soared to $302 million, which significantly exceeds the maximum $295 luxury tax threshold. Hence, with Yanks paying heavy taxes as second-time offenders, managing partner and majority owner Hal Steinbrenner has expressed his concerns about the soaring payroll.
In a candid interview with YES Network, Hal Steinbrenner confessed that the New York Yankees’ present payroll is unsustainable for investing groups as they end up losing a huge chunk of money in taxes. Moreover, Steinbrenner stated that going forward, the club will try to compress the payroll and stay well below the maximum luxury tax threshold. That being said, it is speculated that if Yanks head to this road, they would end up sacrificing generational star Juan Soto in next year’s free agency. Notably, Soto and his agent, Scott Boras, are unlikely to settle for anything less than a $500 million minimum deal as the camp is chasing free agency records. And under no circumstances, the Yankees would be able to adhere to luxury tax rules and extend Juan Soto simultaneously. Hence, as the Bronx Bombers rethink their future sustainability in the league, Steinbrenner undoubtedly faces a deep conundrum.
Hal Steinbrenner Confident Of Juan Soto’s Extension Despite Payroll Issue!
While New York Yankees stand at a risk of losing Juan Soto in free agency next year, managing partner and owner Hal Steinbrenner believes the club will succeed in making enough room for Soto as they have a large chunk of money coming off the books by the end of the year.
Hal Steinbrenner argued that expensive contracts of Gleyber Torres and Alex Verdugo alongside the ex-players pending contracts will all expire this off-season, thus leaving enough space Juan Soto in the star studded roster. Also Steinbrenner reiterated that Yankees do no need $300 million exceeding payroll to win the league as a good balance of youngster and veteran will do the job just fine.
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