The Yankees are heading into the 2025 season with a luxury tax payroll of $303 million, crossing the $301 million threshold.
While they continue to heavily invest in their roster, a significant portion of their spending is tied to players who won’t be contributing this season. This financial burden is hindering their ability to fully optimize resources as they aim to compete for a championship.
A significant portion of the Yankees’ payroll is still dedicated to Aaron Hicks, who, despite no longer being with the team, remains under contract.
Hicks is set to earn nearly $10 million in 2025, even though he hasn’t played for the Yankees since being released in 2023. His deal runs through 2026, but the Yankees will only owe him $1 million in the final year due to a buyout clause.
Hicks’ lingering financial obligation has been a point of frustration for the Yankees, who are already operating with one of the highest payrolls in the league. This has limited the team’s ability to make additional moves, with bad contracts like Hicks’ and DJ LeMahieu’s further complicating their flexibility.
Aaron Hicks
The Yankees also paid a $6 million buyout to Anthony Rizzo after declining his $17 million club option for 2025. Rizzo, who had been a fixture in the Yankees’ lineup, saw his performance drop sharply in 2024.
In 96 games, he posted a .228/.301/.335 slash line with 8 home runs and 35 RBIs, leading the Yankees to seek other options at first base.
Instead of re-signing Rizzo, the Yankees signed Paul Goldschmidt to a one-year, $12.5 million deal. While not in his prime, Goldschmidt offers a clear improvement over Rizzo.
In 2024, Goldschmidt played 145 games for the Cardinals, slashing .245/.302/.414 with 22 home runs and 65 RBIs. His defense remains strong at first base, providing the Yankees with more stability than Rizzo’s inconsistency last season.
Despite the current payroll challenges, the expiration of these financial commitments will bring some relief. Hicks’ contract largely disappears in 2026, and Rizzo’s buyout is a one-time expense.
This will free up roughly $16 million, allowing the Yankees to be more active in the free agent market and strengthen their roster moving forward.
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