The Yankees are gearing up for an exciting and highly competitive World Series against the Los Angeles Dodgers, but looming beyond the season finale are several key decisions that could shape the future of the franchise. While fans will be hyper-focused on the expected bidding war for superstar Juan Soto, with Mets owner Steve Cohen expected to be a major contender, the Yankees will also be weighing their options with other players and their payroll.
Fortunately for the Yankees, they have significant financial flexibility heading into the offseason. They are expected to have around $31.45 million coming off the books from just three players, and the potential departure of Gleyber Torres could clear another $14 million. This sets the stage for the Yankees to pursue a long-term deal for Soto while addressing other roster needs.
Anthony Rizzo: A Club Option Decision
The first major decision the Bombers face is whether to pick up the club option for veteran first baseman Anthony Rizzo. Rizzo, 35, would count $17 million against the luxury tax if the Yankees exercise the option, but the likelihood of that happening is slim. After playing just 92 games in 2024 and hitting .228/.301/.335, Rizzo’s performance has been steadily declining, and the Yankees appear ready to move on.
If Rizzo decides to retire, there’s speculation that he could transition into a coaching role. Given his leadership qualities and rapport with the team, the Yankees could potentially offer him a spot on the coaching staff, should he be interested in staying with the organization.
Alex Verdugo: Likely Departure in Free Agency
Another player expected to leave is outfielder Alex Verdugo. The 28-year-old had one of the worst offensive seasons of his career, hitting .233/.291/.356 with 13 home runs and 61 RBIs over 149 games. His 83 wRC+ indicates he was 17% worse than the average MLB hitter, and his struggles continued in the playoffs, where he batted just .194/.286/.258 over nine games.
While Verdugo’s excellent defense has been a redeeming quality, the Yanks are likely to let him walk in free agency. Verdugo counted $8.7 million against the luxury tax this year, and his departure would free up valuable funds that could be redirected toward retaining Soto or addressing other roster needs.
Tommy Kahnle: Bullpen Arm Set to Depart
The Yankees have long been known for their ability to unearth affordable yet effective bullpen arms, and Tommy Kahnle was no exception. Signed to a two-year, $11.5 million deal, Kahnle has been a valuable asset, especially in the playoffs. However, Kahnle is likely to depart in free agency, clearing another $5.75 million in luxury tax space.
With his departure, the Yankees will once again look to bolster their bullpen, possibly relying on their knack for finding cost-effective options.
The Yankees’ Bidding War for Juan Soto
The centerpiece of the Yankees’ offseason will undoubtedly be the pursuit of a long-term extension for Juan Soto. Soto, currently earning $31 million in the final year of arbitration, is expected to command over $50 million per season on a new deal. The Yankees are poised to enter a bidding war with the Mets, but they have the financial flexibility to stay competitive.
Already, the potential departures of Rizzo, Verdugo, and Kahnle would free up enough salary to cover the difference between Soto’s current salary and what he is likely to earn on his next contract.
Managing Payroll While Staying Competitive
One of the challenges the Yankees will face this offseason is balancing their payroll to stay under the $300 million luxury tax threshold, as managing partner Hal Steinbrenner has expressed a desire to lower the team’s current $309.4 million payroll. This means that every dollar freed up will be critical as the Yankees pursue Soto and consider other moves to strengthen the roster.
While the focus will be on Soto, the Yankees must also decide what to do with Gleyber Torres, who could free up an additional $14 million if he leaves. With so much financial flexibility, the Yankees are well-positioned to make the necessary moves to remain contenders in the years to come.
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Looking Ahead
The Yankees are entering an offseason full of possibilities, with several major decisions that will define their direction. Extending Juan Soto remains the top priority, but the Yankees also have the opportunity to restructure their roster and free up substantial salary space by letting go of some veteran players.
As the World Series looms, fans can expect an active offseason, with Soto at the center of the Yankees’ plans and a renewed focus on maintaining financial flexibility to ensure sustained success. Whether the team can hold onto its superstar while retooling for the future will be the question that defines the offseason.