New York Yankees owner Hal Steinbrenner spoke with reporters in a video conference call, offering a detailed explanation of the team’s payroll expectations for 2026, the club’s major operating costs, and his position on possible changes to Major League Baseball’s economic structure. His comments followed a season in which the Yankees carried one of the largest payrolls in the sport and entered an offseason involving qualifying offers, free-agent decisions, and industry discussions about spending rules across the league.
- Steinbrenner says lowering payroll would be “ideal,” but unlikely, as the Yankees continue to aim for a championship-level roster.
- The Yankees finished the season with a $319 million payroll and face major expenses, including a $100 million annual payment to New York City, which Steinbrenner argues complicates assumptions about profits.
- Steinbrenner remains open to a salary cap only if paired with a salary floor, reflecting his concerns about competitive balance across MLB.
Steinbrenner Explains $319M Payroll and 2026 Plans
Steinbrenner stated that the Yankees finished the season at $319 million in payroll, according to reporting from The New York Post’s Greg Joyce. When he was asked whether the team could spend less in 2026, he responded with a clear explanation of the situation, “Would it be ideal if I went down [with the payroll]? Of course. But does that mean that’s going to happen? Of course not. We want to field a team we know we believe could win a championship.”
General manager Brian Cashman, speaking at the general manager meetings, said the Yankees had not yet provided him with a specific payroll number for the winter. He described the offseason as a process of understanding which players were available and at what cost, and said that the $22 million qualifying offer accepted by outfielder Trent Grisham would not interfere with the team’s pursuit of free agent Cody Bellinger:
“I think we’re in a good spot… The job right now is to find out what’s available, and those all have different price points… It just depends on how things shake out and what opportunities present themselves.”
Sportsbooks posted futures shortly after the season ended, and the Yankees appeared near the top of the boards. Across major betting outlets, the Yankees were consistently listed as the second favorite to win the 2026 World Series, typically in the +700 to +800 range, behind the Los Angeles Dodgers, who won their second straight World Series by defeating the Toronto Blue Jays in seven games. Books also placed the Yankees among the leading contenders to win the American League, and Aaron Judge appeared as an early AL MVP favorite around +300.
Steinbrenner Addresses $100M NYC Payment and Profit Claims
When asked about the belief that the Yankees, often described as Major League Baseball’s most valuable franchise, operate with consistent profits, Steinbrenner gave a direct answer through MLB reporter Bryan Hoch. He said the claim was inaccurate and stated that discussions about revenue overlook the scale of the team’s financial obligations.
“Everybody wants to talk about revenues. They need to talk about our expenses, including the $100 million dollar expense to the City of New York that we have to pay every February 1, including the Covid year. So it all starts to add up in a hurry,” he said.
He also stated that these costs do not change the team’s overall spending profile, saying the Yankees have “always” been among the highest payroll clubs and “always will be.”
At the end of the regular season, excluding contract bonuses, the Yankees carried a $301 million payroll and faced a projected $62 million luxury tax bill. The team has paid the luxury tax in 21 of 23 seasons, with payments that total more than $500 million since the system began in 2003.
Steinbrenner Discusses Salary Cap, Salary Floor, and 2026 CBA
During the call, Steinbrenner was asked whether he supports a salary cap in the next collective bargaining agreement. He said, “I don’t feel like I’m in position right now research-wise, knowledge-wise to answer that question.”
He did say he might support a cap if it included a salary floor, describing a floor as something that could improve competitive balance if structured in a reasonable way. He said many fans believe the league has not made enough progress in this area, though he said some improvements have occurred over the past decade.
The league’s current collective bargaining agreement expires on December 1, 2026. During the last round of negotiations, MLB’s owners carried out a lockout that lasted 99 days before the sides reached a five-year deal on March 10, preserving a full 162-game season that began one week late.
Baseball players have experienced nine work stoppages, including the 7½-month strike in 1994–95, which stopped a prior salary cap proposal.
Qualifying Offers, Free-Agent Targets, and Next Plan
The Yankees’ offseason officially began when Trent Grisham accepted the $22 million, one-year qualifying offer. He was one of four players to accept a qualifying offer this year, along with:
- Gleyber Torres, Detroit Tigers second baseman
- Shota Imanaga, Chicago Cubs left-hander
- Brandon Woodruff, Milwaukee Brewers right-hander
The Yankees are also expected to pursue Cody Bellinger, who earned $27.5 million last season. When the Cubs traded Bellinger to New York, they sent $5 million to the Yankees as part of the terms of his $80 million, three-year contract, which includes two player options. In his season with New York, Bellinger batted .272, hit 29 home runs, and recorded 98 RBIs.
Looking ahead, Steinbrenner said payroll levels could change year to year depending on available opportunities, “It doesn’t mean they won’t go slightly down one year and then up the year after that. It all depends on what’s out there and what possibilities are and how much I feel we’re able to or we need to pull the trigger on those possibilities.”
The Yankees are expected to discuss a payroll range before the Winter Meetings as they evaluate outfield additions, pitching depth, and other roster needs. The club has not won the World Series since 2009 but continues to operate with one of MLB’s highest payrolls and remains positioned to pursue players capable of shifting the roster into championship contention.
