The New York Mets’ Unprecedented Financial Commitment
In 2024, the New York Mets continued their reign as the most financially committed team in Major League Baseball (MLB), marking the third consecutive year they have led the league in spending. Under the ownership of Steve Cohen, who took over from the Fred Wilpon and Saul Katz families in November 2020, the Mets have amassed a staggering $1.36 billion in payroll and luxury tax over just four years. This expenditure not only sets new records but also dwarfs the total player spending of the Marlins, Pirates, and Rays over the past 21 seasons. The Mets set a new regular payroll record of $333.3 million, surpassing their own previous mark of $319.5 million from 2023, which itself was the first to exceed $300 million. Combined with their luxury tax, the Mets’ total expenditure reached $430.4 million in 2024, solidifying their position as the most generous payers in MLB history.
Cohen’s Vision and the Record-Breaking Deals
Steve Cohen’s aggressive spending strategy is a testament to his vision of building a championship-caliber team. Cohen, known for his wealth and financial acumen, has not shied away from making extraordinary investments in player talent. His most notable move came with the signing of outfielder Juan Soto to a record-breaking 15-year, $765 million contract, which begins in the 2024 season. Cohen’s philosophy is clear: to achieve something exceptional, one must be willing to take bold steps and endure the financial discomfort that comes with it. This approach has been reflected in the team’s total spending of $1.13 billion in payroll and $228.7 million in luxury tax since Cohen took over, illustrating his commitment to success at any cost. Even before the Soto deal, the Mets had already spent lavishly, paying $420 million in 2023, including a $100.8 million luxury tax, and $430.4 million in 2024, including a $97.1 million tax.
Comparative Spending and the League Landscape
The Mets’ financial commitment is even more striking when compared to other teams in the league. Their spending over the past four years ($1.36 billion) is just above what the Marlins, Pirates, and Rays have collectively spent over the past 21 seasons ($1.34 billion, $1.32 billion, and $1.32 billion, respectively). Teams like the Oakland Athletics, known for their innovative and budget-conscious approach, have spent a mere $269 million over the same four-year period, while the Pittsburgh Pirates spent $271 million. The league-wide regular payroll rose by 1.8% to $5.158 billion in 2024, up from $5.065 billion in 2023, and has increased by 27.3% over the three seasons under the current labor contract, from $4.051 billion in 2021.
Top Spenders and Payroll Trends
The Mets’ financial dominance is evident when looking at the top spenders in the league. In 2024, the New York Yankees came second with a team-record payroll of $310.9 million, followed by the World Series champion Los Angeles Dodgers at $270.8 million and the Philadelphia Phillies at $249.1 million. Ten teams topped $200 million in payroll, down from a record 11 in 2023, while a record-low four teams were below $100 million, down from six in 2023. Notably, Shohei Ohtani’s salary, with $68 million deferred until 2034-2043, totals $28.2 million in salary toward payroll plus $1.03 million in non-cash compensation. The Oakland Athletics had the lowest payroll at $66.5 million, their final season before moving to Sacramento, and the Pittsburgh Pirates were 29th with a payroll of $87.3 million. Only Oakland, Pittsburgh, and Tampa Bay have never finished with a payroll of $100 million or more.
Postseason Teams and Financial Impact
The financial commitment of postseason teams is a key indicator of success. In 2024, the 12 teams that reached the postseason combined to spend $2.37 billion, accounting for 46% of total payrolls, including $1.02 billion (19.9%) for the four teams in the League Championship Series. The Dodgers and American League champions, the New York Yankees, together spent $644.2 million, or 12.5% of the total payrolls. When adding payroll and luxury tax, the four LCS teams combined for 23.5% of total spending ($1.29 billion of $5.47 billion), and the Yankees and Dodgers for 13.7% ($747.3 million). This concentration of spending highlights the financial powerhouses driving the league’s competitive landscape.
Changes and Future Outlook
The 2024 season also saw significant changes in team payrolls. Arizona raised its payroll the most, by $48 million to $177 million, following their NL pennant victory. The Chicago Cubs were the second-most, increasing their payroll by $34 million to $230 million. Conversely, San Diego cut its payroll by $85 million to $172 million in 2024, a move influenced by the passing of owner Peter Seidler. The Los Angeles Angels dropped $51 million to $179 million, and Minnesota reduced its payroll 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 players’ association, using a slightly different methodology, pegged it at $4,655,366. The luxury tax is based on payrolls with average annual values that include benefits and the pre-arbitration bonus pool, ensuring a comprehensive financial picture of each team’s commitment to their players.
