Major League Baseball is undergoing a revolution with rules changes that have produced quicker games, new stars around the sport, an influx of cash, and in the case of the Los Angeles Dodgers, an unleashed vault of financial resources.
The Dodgers are heading into the 2025 season with a payroll that could top $370 million. Their most recent offseasons have accumulated some of MLB’s best talent, extending their reach into Japan and South Korea.
With the Dodgers having added more than $1.5 billion in payroll, front office executives from other teams have started to criticize and cry foul of the lavish spending. Most of the ire has centered around the Dodgers’ use of deferred salary in player contracts.
When appearing on the YES Network with Meredith Marakovits, New York Yankees chairman Hal Steinbrenner added onto the narrative that other owners can’t get their teams to compete with the Dodgers financially:
“It’s difficult for most of us owners to be able to do the kind of things that they’re doing. We’ll see if it pays off. They still have to have a season relatively injury-free for it to work out for them. It’s a long season, as you know, and once you get to the postseason, anything can happen. We’ve seen that time and time again.
“So we’ll see who’s there at the end and if they’re the ones.”
The Dodgers produced record revenues this past year after that in large part was thanks to receiving an additional boost from new sponsorship deals because of signing Shohei Ohtani. That on top of what the World Series run brought in, there was no shortage of the Dodgers being in the green.
But to what Steinbrenner claimed, the Yankees are in a position like the Dodgers, and his comments are a disservice to their own fans.
From 1995-2013, the Yankees led every team in payroll. That included winning multiple World Series championships during the George Steinbrenner era when spending was secondary to winning.
According to Forbes, the Yankees brought in a Major League-best $679 million in revenue during the 2023 season and paid out $316 million to their payroll last year. Hal Steinbrenner’s dubious claim that a franchise recently valued at $7.55 billion could not compete with the spending giants of MLB is more of an indication of franchise priorities.
The Yankees were in the mix for Juan Soto and his record-breaking contract, but they missed out on his services before he signed with the New York Mets on a 15-year, $765 million deal. They, too, were a top suitor Yoshinobu Yamamoto, but Steinbrenner and the Yankees front office deemed he wasn’t worthy of receiving more money than their current ace, Gerrit Cole.
Hal Steinbrenner, Yankees have history of spending
The Yankees and big-time spending have been two in the same for over 30 years. The 1990s and early 2000s were dominated by essentially being the central hub for stars after their breakout seasons.
They used the Oakland Athletics of the time as a feeder system to supplement their Major League roster, poaching some of the game’s best rising talent.
Now in 2024, MLB is reporting record revenue and attendance numbers. The Yankees are at the front of those figures thanks to a dedicated fanbase that supports them.
The team that has made high payrolls a regular practice, is suddenly hamstrung after failing to capture a title in the 2024 World Series, falling to the Dodgers no less. Missing out on Soto and other marquee free agents may be a direct reason their brand and financial might isn’t the biggest draw.
On the flip side, the Dodgers have earned praise from some opposing front office members, who have credited the franchise with the powerhouse they continue to build.
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