Hal Steinbrenner Hasn't Told Yankees to Spend Less on Payroll, Says CBT Not a Concern

New York Yankees Managing General Partner Hal Steinbrenner told reporters Friday that he did not tell the front office to spend less on the payroll. He also added that avoiding the highest surcharge on the Competitive Balance Tax threshold isn't a priority, per ESPN's Jorge Castillo.

"I would say no," Steinbrenner said when asked about the latter. "The threshold is not the concern to me."

Per Cot's Contracts, the Yanks have a $304.8 million competitive balance payroll. The Competitive Balance Tax threshold for 2025 stands at $241 million, per MLB.com. Of note, exceeding the CBT for three straight years leads to a 50 percent tax rate. Exceeding the base threshold by $60 million or more leads to a 60 percent surcharge.

The Yankees are certainly spending big this year. Per FanGraphs, their payroll is the fourth-highest in baseball. Despite losing Juan Soto in free agency to the New York Mets on a $765 million deal, the Yanks made some big additions, including starting pitcher Max Fried, closer Devin Williams, first baseman Paul Goldschmidt and outfielder Cody Bellinger.

Steinbrenner said he doesn't believe having a high payroll necessarily correlates to a World Series, but he did acknowledge fans' expectations for the team to spend and compete.

"Does having a huge payroll really increase my chances that much of winning the championship?" Steinbrenner said, per Castillo. "I'm not sure there's a strong correlation there. Having said that, we're the New York Yankees, we know what our fans expect. We're always going to be one of the highest in payroll. That's not going to change. And it certainly didn't change this year."

New York began the spring training schedule Friday with a 4-0 win over the Tampa Bay Rays. Their regular season begins on March 27 versus the Milwaukee Brewers.