Hal Steinbrenner just sent a clear signal to the rest of MLB’s billionaire owners: the days of the New York Yankees’ blank checkbook might be over. For the first time in decades, the Yankees chairman is talking as though he runs the Pittsburgh Pirates, and it could change the financial landscape of baseball forever.

Most players and agents will push back against a potential salary cap. The small-market owners, on the other hand, will be all for it. The Yankees organization may not belong in that category, but Hal Steinbrenner is also aligned with the idea.

“Would it be ideal if I went down [with the payroll]? Of course,” Steinbrenner said earlier this week ahead of Thanksgiving.

He explained that while it’s too soon to set a firm payroll for the next campaign, he’d still like the number to drop from the $319 million the Yankees spent on players this past season. Speaking of which, Steinbrenner also insisted that it’s not fair to say the Yankees turned a profit in 2025.

Even if he’s not lying, Steinbrenner is being deliberately vague. It’s the Yankees we’re talking about. They are among the most valuable, high‑earning sports franchises globally. Doesn’t that make it hard to believe that they’d be operating at a loss?

By portraying the Yankees as financially stretched, Hal Steinbrenner makes a stronger case for a salary cap. One that would curb spending by other teams and benefit high-revenue clubs like New York.

“Everybody wants to talk about revenues. They need to talk about our expenses.” Steinbrenner added during the call. He even laid out all the expenses after making that remark.

• $100 million annual payment to the City of New York (due every February 1, including during COVID).
• Scouting expenses
• Performance science/analytics investments
• Player development costs

Perhaps the biggest surprise came when he said he’d be open to a salary cap if it includes a “reasonable” salary floor.

A salary cap would protect half the owners from the other half. That’s what this whole debate is really about. It’s always going to be owners vs. owners.

But just because MLB teams operate as monopolies, they can’t make any major changes without a collective bargaining agreement that the players agree to. The players have to sign off on the system they’re playing in.

He likely wants a salary cap because it would take the pressure off him to outspend everyone else. Yet, Hal Steinbrenner declined to answer whether he prefers a salary cap proposal in the next collective bargaining agreement.

“I don’t feel like I’m in position right now research-wise or knowledge-wise to answer that question.”

His only thoughts on the salary cap are that he believes the Yankees will always rank among the highest in payroll.

For the record, excluding all the contract bonuses, the Yankees’ payroll stood at $301 million at the end of the regular season with a projected luxury tax bill of $62 million.

The team held MLB’s highest payroll for 15 consecutive years through 2013. But since then, they haven’t been able to top the league. Still, they did pay the luxury tax in 21 of the past 23 seasons, totaling over $500 million.

Paychecks vs.Performance: What payrolls say about MLB’s championship contenders

It’s unbelievable that Juan Soto left the Yankees after one season to join the Mets on a record $765 million, 15-year contract. And yet Yankees’ crosstown rivals missed the playoffs despite a $340 million+ payroll and more than $195 million in luxury taxes.

On the other hand, the Dodgers were able to capture their second straight World Series title. They defeated the Toronto Blue Jays in seven games. They finished the regular season with an adjusted payroll of $350 million and a luxury tax bill of more than $168 million. We’re not even counting the $6.5 million signing bonus for minor leaguer Roki Sasaki.

Since expanded playoffs began in 1995, 22 World Series champions ranked among the top 10 in Opening Day payroll. But since the Yankees’ last title in 2009, only four teams have won while sitting in the top three. It’s the 2018 Red Sox and the 2020, 2024, and 2025 Dodgers.

Baseball’s current collective bargaining agreement is set to expire on December 1, 2026. And management lockouts have become increasingly common, often pushing any work stoppage into the offseason.

During the previous negotiations, the league and players reached a five-year deal on March 10 after a 99-day lockout, ultimately saving the full 162-game 2022 season, which had been delayed by a week.

A proposed MLB salary cap could include a salary floor and guarantee players a set percentage of revenue. Over the years, players have faced nine work stoppages, including the 7½-month strike in 1994–95 that successfully blocked a cap proposal.