Yankees are staring at a $4 million luxury tax problem

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The Yankees are inching closer to the finish line of their offseason spending, but they still have one significant hurdle left to clear: getting under the $301 million luxury tax threshold. As of now, they sit at $305 million in tax salary, meaning they need to find a way to shed at least $4 million before Opening Day.

Tim Hill’s Contract Adds to the Payroll

On Tuesday, the Yankees signed veteran left-handed reliever Tim Hill to a one-year deal worth close to $3 million. Hill is a solid addition, bringing a ground-ball-heavy approach that should play well in Yankee Stadium. However, his contract pushes them further above the final luxury tax threshold, making it even more critical to trim salary elsewhere.

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Marcus Stroman Remains the Most Logical Trade Candidate

If there’s one obvious way for the Yankees to clear space, it’s by moving Marcus Stroman. He’s set to earn $18.5 million this season, and while the Yankees would love to offload his entire contract, that seems unlikely. Instead, they’ll likely have to retain some of his salary or attach a prospect to entice another team to take him on.

The most probable outcome is that they work out a trade that allows them to offload just enough of Stroman’s deal to dip under the tax line. Whether that’s a full salary dump or a package deal where they eat a portion of his contract, it’s becoming clear that Stroman’s days in pinstripes are numbered.

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Timing the Trade

It’s only a matter of time before the Yankees strike a deal. They don’t have to rush, but as spring training nears, the pressure to finalize their financial positioning increases. Stroman has already wiped his Yankees presence off social media, a move that often signals an impending departure.

The Yankees have built a strong roster, but their ownership remains intent on avoiding excessive tax penalties. Moving Stroman is the clearest path to achieving that goal while maintaining roster flexibility. Now, it’s just a matter of finding the right trade partner.

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