It seems like sports economics have changed a lot. Despite the popularity, the New York Yankees do not seem to be able to compete with the Los Angeles Dodgers anymore. Late owner George Steinbrenner admitted the difficulty in competing against. How true is that?

Well, even their $7.5 billion worth is unable to outperform the Dodgers. They have outspent themselves as well as other teams. However, is not all dark! The Yankees are very close to hitting the $290 million payroll milestone – something not yet been reached by any other franchise. But what makes them even more special is how George Steinbrenner acquired the Yankees in 1973 and gradually made it a family business, with his son inheriting the ownership. 

The Yankees’ financial difficulty against the Dodgers

Ever since George Steinbrenner purchased the New York Yankees, the club gained tremendous success, which continued even after his son, Hal, took over the reins. The team steadily progressed with three World Series rings and asserted themselves as the best “family business” in the history of American professional sports. However, on January 31, top MLB insider Buster Olney shed light upon the team’s financial challenges: “The Yankees aren’t spending as much as a lot of people want. They probably can spend. The Yankees are a family business for the most part, and the Dodgers are owned by multiple billionaires.” 

Buster also pointed out that the Los Angeles Dodgers did not think much about the budget. Instead, they tried to add the best players. But it’s not the same for the Yanks, unlike their past of getting Roger Clemens and multiple superstar free agents. So, somehow, fans are anticipating that if George Steinbrenner could get whoever he wanted, Steinbrenner Jr. can also manage it. But that looks unlikely given that over the past two offseasons, the Dodgers have spent more than $2 billion on players’ salaries – something difficult to compete against.

So, what’s on the table now for the Yankees?

The Yankees aren’t far behind as they make some great additions

Despite the Dodgers’ estimated pay of $370 million in payroll plus tax, the Yankees’ doesn’t fall too far at approximately $273 million. But the differentiating factor is that the total salary amounts to only a 12% surcharge, which can make a total of $291 million, while the Dodgers have to pay a 42.5% surcharge. But that’s not everything!

The Yankees still have their MVP, All-Star, Aaron Judge, who brings a lot to the table. While replacing Juan Soto’s great offensive production won’t be easy, the Pinstripes have added two former MVPs—Cody Bellinger and Paul Goldschmidt. How suitable are they for the rotation? 

Well, their presence can bolster the offensive production for the Yankees. While Cody Bellinger had a batting average of .266, with 137 hits, 18 home runs, 72 runs, and 78 RBIs in 130 games, Paul Goldschmidt had a .245 average, with 22 home runs, 65 RBIs, and .716 OPS. Although it cannot top Soto, it would be helpful considering the team also made their biggest expenditure by signing left-hander Max Fried for a hefty eight-year, $218 million contract.

So, the Yankees have added quite a few good players, despite all the comparisons with LA. And now, it is almost coming down to how the teams perform in the league. Only that can determine whether they have made the right moves. 

Do you think only money can do the talks for the Yankees? Share your thoughts!