Mets Continue to Dominate MLB Spending: A Deep Dive into Their Financial Strategy
In the world of Major League Baseball, the New York Mets have once again made headlines by leading the league in spending for the third consecutive year. This financial feat is not just a flash in the pan; it’s a testament to the aggressive strategy employed by owner Steve Cohen since he took over the team. Let’s take a closer look at the numbers and what they mean for the Mets and the league as a whole.
Under Cohen’s ownership, the Mets have spent a staggering $1.36 billion in payroll and luxury tax over four years. This amount surpasses the total player spending of the Miami Marlins, Pittsburgh Pirates, and Tampa Bay Rays over the past 21 seasons. It’s a bold move that underscores Cohen’s commitment to building a winning team, no matter the cost.
In 2024, the Mets set a new regular payroll record of $333.3 million, breaking their own previous record of $319.5 million set in 2023. This marked the first time a team exceeded the $300 million threshold. The total spending for the Mets last year, including a $97.1 million luxury tax, reached $430.4 million, setting a new cost record. The year before, they spent $420 million, which included a $100.8 million tax.
Since Cohen’s acquisition of the team in November 2020, the Mets have accumulated $1.13 billion in payroll and $228.7 million in tax. This was before they signed outfielder Juan Soto to a record 15-year, $765 million contract starting this season. Cohen’s philosophy is clear: “One thing I’ve learned a long time ago, if you want something that’s amazing, it’s going to be uncomfortable,” he said in December.
To put the Mets’ spending into perspective, their expenditure from 2021 to 2024 slightly exceeded the combined payrolls of the Marlins, Pirates, and Rays from 2004 to 2024, each totaling around $1.32 billion. In stark contrast, the Oakland Athletics have spent just $269 million over the past four seasons, with the Pirates close behind at $271 million.
Overall, MLB’s total spending based on regular payrolls rose by 1.8% to $5.158 billion from $5.065 billion last year. This represents a 27.3% increase over three seasons under the current labor contract, which began in 2021 with a total of $4.051 billion.
The Mets are the first team to lead in payrolls for three consecutive seasons since the Los Angeles Dodgers did so from 2014 to 2017. The New York Yankees followed closely with a team-record $310.9 million in regular payrolls. The World Series champion Dodgers were third at $270.8 million, and the Philadelphia Phillies came in fourth at $249.1 million.
- Ten teams exceeded $200 million in payroll, down from a record 11 in 2023.
- A record-low four teams had payrolls below $100 million, a decrease from six in 2023.
One interesting financial maneuver involves Shohei Ohtani, whose $700 million salary includes $68 million deferred to 2034-43. This results in $28.2 million counting toward payroll, plus $1.03 million in non-cash compensation.
The Athletics had the lowest payroll at $66.5 million in their final season before relocating to Sacramento for at least three seasons, with plans to eventually move to Las Vegas. The Pirates were 29th at $87.3 million. These two clubs, along with the Rays, have never finished a season with a $100 million payroll.
The 12 teams that made it to the postseason spent a combined $2.37 billion, accounting for 46% of total payrolls. The four teams in the league championship series spent $1.02 billion, or 19.9% of the total. The Dodgers and American League champion Yankees alone accounted for $644.2 million, or 12.5% of the total.
When adding payroll and luxury tax, the four LCS teams accounted for 23.5% of total spending, with the Yankees and Dodgers alone making up 13.7%.
The Arizona Diamondbacks increased their payroll the most, by $48 million to $177 million after winning the National League pennant. The Chicago Cubs followed with a $34 million increase to $230 million.
Conversely, the San Diego Padres reduced their payroll by $85 million to $172 million in 2024 following the death of owner Peter Seidler. The Los Angeles Angels cut $51 million to $179 million, and the Minnesota Twins reduced theirs by $34 million to $133 million.
Regular payrolls are calculated based on 2024 salaries, earned bonuses, and prorated shares of signing bonuses and non-cash compensation for 40-man rosters. Deferred salaries and bonus payments are discounted to present-day values, and termination pay, option buyouts, and cash transactions among clubs are accounted for.
MLB calculated the average salary at $4,592,147, while the MLB Players Association, using a slightly different methodology, pegged it at $4,655,366. Luxury tax is based on payrolls with average annual values that include benefits and the pre-arbitration bonus pool.
Originally Written by: ESPN.com
