Rosenthal: Mets 'Basically Paying Double' on FA Contracts with Taxes amid Ohtani Buzz

The New York Mets sported a league-high $353 million payroll last year but only had a fourth-place NL East finish and a 75-87 record to show for it.

The Mets should stay active in free agency this offseason as they hope to turn their fortunes around, although while owner Steve Cohen wants a competitive roster, it doesn't appear that they are going to have the bottomless pockets this team sported in the past.

That may be because of the competitive balance tax (luxury tax), which the Mets have found themselves on the wrong side of at the moment. Ken Rosenthal of Fox Sports explained the situation on Foul Territory amid a discussion on prized free agents Yoshinobu Yamamoto and Shohei Ohtani.

"They will be involved for Yamamoto. I would not be surprised if they were involved for Ohtani, at some level. The problem for the Mets, and maybe it's not a problem at all because Steve Cohen is the owner, at the tax level they're at, they're basically paying double on any free agent contract they agree to with a player.

"So for instance, if he gives Ohtani $500 million, that's a billion. If he gives Yamamoto $200 million, that's $400 million..."

Of course, teams don't need to spend hundreds of millions to compete—the National League champion Arizona Diamondbacks were ranked 21st in payroll last season, for instance. The 100-win Baltimore Orioles were 29th. The World Series champion Texas Rangers were up there but came in at ninth.

Cohen hasn't been afraid to spend as much as possible with his team, but at some point, it just may be too much to stomach.

That being said, the Mets do have new leadership with ex-Milwaukee Brewers general manager David Stearns running baseball operations and ex-New York Yankees skipper Carlos Mendoza now the team's manager, so perhaps that could be enough to turn this team around.

In the meantime, the Mets are certainly a team to watch this offseason as they look to rebound from a brutal 2023 campaign.