Report: MLB Team Payrolls Dropped Nearly $2.5 Billion Amid Pandemic Last Season

The emergence of the coronavirus last spring led to a colossal battle between MLB and the MLB Players' Association over finances that nearly derailed the sport before the season could even begin. 

Now analysts are starting to see just how much COVID-19 impacted the day-to-day operations of the league. According to Ronald Blum of the Associated Press, MLB payrolls dropped by nearly $2.5 billion in 2020, going from $4.22 billion in 2019 to $1.75 billion last year. 

Per Blum:

"Base wages for 40-man rosters tumbled to $1.54 billion, according to information sent from Major League Baseball to teams on Friday night and obtained by The Associated Press. That was down from $3.99 billion in 2019. 

"Prorated portions of signing bonuses totaled $120.6 million, down slightly from $122.8 million. Earned bonuses fell to $25 million from $26.9 million.

"Buyouts of unexercised 2021 options came to $58.2 million, more than double the $26.9 million for buyouts of unexercised 2020 options, a sign of expense-cutting amid the revenue loss."

The World Series-winning Los Angeles Dodgers led MLB with the highest payroll at $98.6 million, putting them atop the league for the first time since 2017. The New York Yankees clocked in with the second-highest payroll for the second consecutive year with $83.6 million, while the New York Mets were third with $83.4. The Queens-based club is expected to begin increasing spending in the coming years as new chairman Steve Cohen begins remaking the franchise in his image. 

Yet bigger spending does not necessarily correlate to more wins as the Tampa Bay Rays continue to prove. The American League champions ranked 28th in payroll at $29.4 million. 

Blum noted if full salaries had been paid over a complete 162-game regular season with the typical amount of call-ups, payrolls would've likely increased by four percent year over year. 

After moving Mookie Betts and David Price to Los Angeles ahead of the 2020 season, the Boston Red Sox' plan to cut salary proved dramatic as the team's payroll sank to $63.3 million only one year after the storied franchise led MLB in spending.