While the Yankees are intensely focused on their upcoming World Series matchup against the Los Angeles Dodgers, a significant decision looms just weeks away regarding superstar slugger Juan Soto. Soto has been instrumental in the Yankees’ deep playoff run this season and is coming off one of his best regular seasons at just 25 years old.
Juan Soto’s Stellar Regular Season
Soto played 157 games during the regular season, slashing .288/.419/.569 while hitting a career-high 41 home runs and driving in 109 RBIs. His plate discipline was impressive, with a 16.7% strikeout rate and an 18.1% walk rate, resulting in a 180 wRC+. These numbers set Soto up for what is expected to be a record-breaking contract, potentially surpassing $600 million.
Soto’s Dominant Postseason Performance
In the postseason, Soto has continued to shine. Through nine games, he’s hitting .333/.439/.667, with matching 17.1% strikeout and walk rates, and an outstanding 202 wRC+. As Aaron Judge has struggled to find his rhythm, Soto has carried the Yankees, excelling in both the ALDS and ALCS against the Cleveland Guardians.
His Game 5 performance in the ALCS, capped by a monstrous three-run homer, underscored his value and solidified why the Yankees must prioritize his extension—even if it means a bidding war with Steve Cohen of the New York Mets.
Soto’s Contract and Salary Cap Considerations
Soto is in his final year of arbitration with a $31 million cap hit for the Yankees this season. With the Yankees’ adjusted payroll sitting at $309.4 million, managing partner Hal Steinbrenner has already expressed a desire to reduce this figure. However, a long-term extension for Soto could be worth the investment.
If the Yankees were to offer Soto a $600 million deal over 12 years, he would command an average of $50 million per season until he turns 37. This figure, while substantial, ensures that the Yankees would retain one of the most dominant power hitters in baseball, likely securing multiple World Series appearances in that timeframe.
Managing the Payroll for Soto’s Extension
The key to Soto’s contract is the annual salary, not the total sum. Paying Soto $19 million more per season than his current $31 million cap hit should be feasible, even without parting ways with key players like Gleyber Torres. Torres, who is earning $14.2 million this season, could leave in free agency, freeing up a significant portion of the additional funds needed for Soto.
Another option for the Yankees is to decline Anthony Rizzo’s $17 million club option, which would almost entirely cover the balance needed for Soto’s annual salary. This move would allow the Yankees to retain both Torres and Soto without exceeding payroll constraints.
Yankees’ Additional Payroll Flexibility
The Yankees also have Marcus Stroman under contract for 2025, but they could save $18.5 million if they avoid triggering his player option for 2026 by keeping him under 140 innings pitched. Stroman’s departure would provide further payroll flexibility for Soto’s extension.
Additionally, Alex Verdugo, who counts $9.2 million against this year’s payroll, will enter free agency, and the Yankees are expected to replace him with star prospect Jasson Dominguez in left field. In total, the Yankees have $40.4 million coming off the books, more than enough to cover Soto’s increased salary.
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With Juan Soto proving himself to be one of the league’s most elite hitters, the Yankees have every reason to extend him, even if it means significant financial commitment. By reallocating funds from departing players like Rizzo, Stroman, and Verdugo, the Yankees can comfortably afford a massive contract for Soto without sacrificing key contributors like Gleyber Torres. Securing Soto long-term will be a major step in keeping the Yankees competitive for years to come.