Yankees owner Hal Steinbrenner declines to say he supports salary cap but might support salary floor

In February, Steinbrenner said he might support a salary cap proposal as long as it contains a provision mandating minimum payrolls. MLB has had a luxury tax in place since 2003 but is the only one of the four major U.S. professional leagues without a salary cap.

“Something that would be reasonable enough that it would improve competitive balance significantly in the sport,” Steinbrenner said when asked about a possible salary floor. “Many fans already argue it’s not been enough. I think we made strides the last 10 years in some of the things we’ve done but as an industry probably not near where we need to be, at least that’s what the majority of the fans believe and there’s a number of ways to attack.”

At the end of the regular season and not including contract bonuses, the Yankees had a $301 million payroll and projected luxury tax bill of $62 million. The Yankees had Major League Baseball's highest payroll for 15 straight years through 2013 but have not led in payroll since then, though they have paid the luxury tax in 21 of 23 seasons for a total of more than $500 million.

The crosstown Mets signed Juan Soto to a record $765 million, 15-year contract after his only season with the Yankees and missed the playoffs with a $340 million payroll and a luxury tax of $89 million.

The Dodgers won their second straight World Series by beating the Toronto Blue Jays in seven games and ended the regular season with a $341.5 million payroll and a luxury tax bill of $168 million — and that did not include the $6.5 million signing bonus for Roki Sasaki on a minor league contract.

Six of the 12 postseason teams have payrolls of $200 million or more, with the Boston Red Sox about $500,000 short of the mark.

Since 1995 when expanded playoffs began, 22 teams won a World Series ranked in the top 10 in Opening Day payroll. Since the Yankees last won a title in 2009, only four teams won a World Series ranked in the top three of payroll: the 2018 Red Sox, and the 2020, 2024 and 2025 Dodgers.

Baseball’s collective bargaining agreement expires Dec. 1, 2026, and management lockouts have become the norm, which shifts the start of a stoppage to the offseason. During the last negotiations, the sides reached a five-year deal on March 10 after a 99-day lockout, salvaging a 162-game 2022 season that was delayed by a week.

A management salary cap proposal could contain a salary floor and a guaranteed percentage of revenue to players. Baseball players have endured nine work stoppages, including a 7 1/2-month strike in 1994-95 that fought off a cap proposal.

The Yankees retained Trent Grisham after he accepted the $22 million, one-year qualifying offer. Grisham was among a record four players to accept along with Detroit second baseman Gleyber Torres, Chicago Cubs left-hander Shota Imanaga and Milwaukee right-hander Brandon Woodruff.

The Yankees are expected to make an aggressive bid to retain Cody Bellinger, who was paid $27.5 million last season.

The Cubs sent $5 million to the Yankees when they traded Bellinger and the versatile outfielder batted .272 with 29 homers and 98 RBIs under the first of two player options as part of an $80 million, three-year contract.

“Would it be ideal if I went down (with our payroll)? Of course,” Steinbrenner said. "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.

“It just hasn’t changed which is why payrolls have gone up probably every year. 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 the possibilities are and how much I feel we’re able to or we need to pull the trigger on those possibilities.”

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