The Yankees are in a financial bind as they try to stay competitive while navigating the luxury tax system. They’re currently coughing up about $16 million for players no longer on their roster, creating challenges as they aim to make one more impactful move to bolster their infield.
MLB: Minnesota Twins at New York Yankees Jun 6, 2024; Bronx, New York, USA; New York Yankees first baseman Anthony Rizzo (48) reacts after being hit by a foul ball during the third inning against the Minnesota Twins at Yankee Stadium. Mandatory Credit: Vincent Carchietta-USA TODAY Sports
Sitting at $303 million in luxury tax salary, they’re over the fourth tier threshold of $301 million, and offloading some weight—like Marcus Stroman’s $18.5 million contract—has become a priority. However, even if Stroman is moved, the Yankees are still tethered to significant dead money from past missteps.
Aaron Hicks Still on the Books
One of the more glaring financial burdens is Aaron Hicks. The outfielder is owed $9.8 million for the 2025 season as part of the seven-year, $70 million deal the Yankees prematurely ended. They’ll also owe Hicks $1 million in 2026 as part of a buyout.
Hicks played just 18 games with the Los Angeles Angels last season before becoming virtually unplayable, and it’s unclear if another team will even give him a chance to revive his career. At this point, Hicks might simply cash his paychecks and ride off into the sunset, as the Yankees pay for a contract that has long overstayed its welcome.
Anthony Rizzo’s Decline and Dead Money
The Yankees also owe Anthony Rizzo $6 million in 2025 after declining his $17 million club option. Rizzo’s once-feared bat has quieted significantly, as evidenced by his 2024 numbers.
The veteran first baseman hit .228/.301/.335 with just eight home runs and 35 RBIs over 92 games, and his power has been in sharp decline for two years. His defense has also slipped, leaving him as a potential liability for any team considering him as a starter. While Rizzo hasn’t officially retired, it wouldn’t be surprising if he decides to call it a career rather than settle for a diminished role elsewhere.
The Cost of Replacing Juan Soto
After losing Juan Soto to the Mets this offseason, the Yankees have spent aggressively to fill the void. Moves like acquiring Paul Goldschmidt and Max Fried have bolstered the roster, but they’re still one significant infield bat away from truly rounding out the offseason. That missing piece looms large as the team tries to compete in a weakened American League, especially when the Soto-sized hole in the lineup remains unfilled.
Navigating Financial Hurdles
The Yankees’ efforts to compete are hampered by their financial caution. Carrying dead money for players like Hicks and Rizzo eats into their flexibility, and the $16 million they’re shelling out for no production highlights the consequences of past mismanagement. While the team has been active in addressing weaknesses, navigating these financial hurdles will be key if they want to make one more significant move and solidify their championship aspirations.
