How the Yankees can free up $80.5 million in free agency funds

Yesterday at 01:19 PM

The New York Yankees are entering a pivotal offseason, with a focus on making major roster upgrades, starting with the long-term extension of superstar Juan Soto. Soto, who earned $31 million in arbitration last season, is expected to command a $50 million annual salary on his new deal. That means the Yankees must find an additional $19 million in payroll space to secure him.

Financial Breakdown: Where the Yankees Stand

Currently, the Yankees have $238.8 million allocated to their roster, including arbitration estimates and existing contracts. A significant chunk of that—$128 million—is tied up in just four players (as SNY referenced): Aaron Judge ($40 million per season), Gerrit Cole ($36 million), Giancarlo Stanton ($25 million), and Carlos Rodon ($27 million).

Managing partner Hal Steinbrenner has already signaled that he does not believe the team needs to exceed $300 million in total payroll to field a competitive roster. This leaves the Yankees with about $62 million in spending flexibility for the offseason. However, they could open up an additional $18.5 million by offloading Marcus Stroman.

A Case for Trading Marcus Stroman

Stroman, who is owed $18.5 million in 2025, would have a 2026 player option if he pitches 140 innings next season. Given his significant velocity drop and underwhelming performance (4.31 ERA over 154.2 innings in 2024), the Yankees may view him as expendable. Trading Stroman would not only free up payroll but also eliminate the risk of his contract carrying over into 2026.

Prioritizing Soto and First Base Reinforcements

If the Yankees are serious about upgrading the roster, retaining Soto is non-negotiable. Beyond Soto, they also need to address first base, with Arizona Diamondbacks slugger Christian Walker emerging as a prime target. Walker, a Gold Glove-caliber defender, would provide a substantial offensive boost but would likely cost around $20 million per season.

The Yankees also need bullpen reinforcements, as they are set to lose key relievers Clay Holmes and Tommy Kahnle in free agency. Finding cost-effective replacements or trading for controllable bullpen arms will be crucial to maintaining a competitive pitching staff.

Relying on Youth to Reduce Costs

The Yankees have the opportunity to cut costs by promoting pre-arbitration talent. Caleb Durbin, a standout prospect, could take over at second base, while Jasson Dominguez is expected to start in left field. Both players would cost approximately $750,000 each, significantly less than free-agent replacements.

Additionally, the Yankees already have young, cost-controlled players like Austin Wells, Anthony Volpe, and Luis Gil contributing to the roster. This youth movement has given the team the flexibility to consider trading other high-upside prospects, such as outfielder Spencer Jones, to address immediate needs.

Balancing Now and the Future

The Yankees face a delicate balancing act. On one hand, they have a core built to win now, led by Aaron Judge and Gerrit Cole, both of whom remain in their primes. On the other hand, they must weigh the long-term potential of their prospects against the urgency to contend for a World Series.

Trading prospects like Jones in a salary dump or for proven MLB talent could help address multiple roster needs. While the Yankees have shown a strong track record of developing young players, they cannot afford to wait for every prospect to pan out.

$80 Million to Work With?

Assuming the Yankees can trade Stroman, they would have approximately $80.5 million in payroll space. This would provide ample flexibility to extend Soto, sign Walker, and bolster the bullpen. By creatively reallocating resources and leveraging their deep farm system, the Yankees could make substantial improvements without exceeding Steinbrenner's desired payroll threshold.

The Time to Push Is Now

The Yankees are in a unique position to both build for the future and contend immediately. Retaining Soto is paramount, and using their financial flexibility to address first base, the bullpen, and other key areas is essential. With Judge and Cole leading the charge, the Yankees cannot afford to waste their primes. A calculated, aggressive offseason strategy will determine whether the team can finally return to World Series glory.