The Yankees’ off-season spending spree has pushed their payroll above the final $301 million luxury tax threshold. With Jonathan Loaisiga signing a one-year, $5 million deal for the 2025 season, the Yankees’ estimated luxury tax salary now sits at $303 million. While the team has made significant roster upgrades, this new financial situation presents challenges that general manager Brian Cashman must address.
Jonathan Loaisiga’s Contract Adds Pressure
Loaisiga’s deal, which includes a 2026 club option, added a notable sum to the Yankees’ payroll. After injuries limited him to just four innings last season, the Yankees are taking a calculated gamble on his ability to rebound and provide meaningful contributions to the bullpen.
While the investment could pay off if Loaisiga regains his 2021 form, it has contributed to pushing the team into the top luxury tax bracket, which comes with increased penalties.
Marcus Stroman Trade Becomes a Logical Solution
With the Yankees over the threshold, a logical way to reduce payroll is to trade Marcus Stroman, who carries an $18.5 million salary for the upcoming season.
Stroman, acquired as part of the Yankees’ efforts to bolster their starting rotation last offseason, has been inconsistent since joining the team. Last season, he posted a 4.31 ERA over 154.2 innings, with his strikeout rate dropping to a career-low 6.58 per nine innings. Stroman’s contract includes a player option for 2026 that activates if he pitches more than 140 innings in 2025, adding another layer of complexity to his future with the team.
Creative Trade Options for Stroman
The Yankees could explore trading Stroman to a pitching-needy team while taking on a portion of his salary to facilitate a deal. By retaining part of Stroman’s salary, the Yankees could reduce their luxury tax obligations while gaining flexibility to address other roster needs. This strategy would allow the Yankees to target a valuable return in prospects or a cost-controlled player who could fill a void elsewhere on the roster.
Financial Implications and Roster Adjustments
Trading Stroman would free up significant payroll space, helping the Yankees dip below the $301 million threshold and avoid the most punitive tax penalties. It would also create an opportunity to reallocate resources to positions of need, such as second base or third base, where they are still exploring upgrades. By addressing the luxury tax issue early in the off-season, the Yankees could position themselves for greater financial flexibility and better roster balance moving forward.
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What’s Next for Cashman and the Yankees?
As the Yankees navigate their luxury tax dilemma, all eyes are on Cashman to make a move that balances the team’s financial constraints with its championship aspirations. Trading Stroman appears to be the most straightforward solution, but it will require strategic negotiation to ensure the Yankees maximize their return while staying competitive in 2025.
With the Yankees needing another infielder, offloading money should be priority No. 1 after the holidays.