Hal Steinbrenner’s review of the Yankees’ financial issues has raised eyebrows across baseball. Despite managing a $7 billion franchise, he grouped the Yankees with smaller-market teams. Claiming the Yankees are struggling to keep pace with the Dodgers did not sit well with many.

Chris Rose and Trevor Plouffe were among those offended. The Yankees are a financial giant. The team’s annual revenues exceed $2 billion. How can Steinbrenner say they are in the same boat as teams fighting to stay afloat? On Baseball Today, Rose did not stop. “Were you offended when he said most of us owners“? “He is not in that group. He is not”.

The numbers prove it. The Yankees remain baseball’s financial juggernaut. In 2023, they generated over $650 million in revenue. Their YES Network alone raked in more than $400 million. Payroll-wise, they spent $280 million, second only to the Mets. With that kind of money, New York should be leading free agency, not falling behind.

That is why Rose and Plouffe were stunned. Rose expanded on his frustration. “Obviously, the Yankees have their own network, not to mention they’re the most valuable franchise in baseball by over two billion dollars. I think they’re valued at seven and a half billion, which makes them, last time I read, the fourth-highest franchise in the world in sports. So, like, yeah—you shouldn’t be crying poor if you’re Hal Steinbrenner“.

Plouffe echoed the sentiment. The issue is not money. It is how the Yankees choose to invest it. The team’s reaction highlights a shift in thinking. The Yankees still have the financial muscle. The management is just hesitant to flex it, like, before. Rose added one last jab. “He made it sound like the other 29 owners are all in the same boat. ‘Let’s all grab the same oars, guys, because that Dodger boat over there is really racing ahead of us, go, go“. So, did Hal Steinbrenner sound foolish? The reaction across baseball highlights a resounding yes.

Yankees spending transformation, a strategic move, or a step back?

Despite their financial power, the Yankees have been unusually cautious this offseason. The Dodgers spent over $1 billion, adding Shohei Ohtani, with $700M as well as Yoshinobu Yamamoto, with $325M. However, the Yankees’ biggest move was trading for Juan Soto, without a long-period extension. This has guided some to question if the team is acting, like, a small-market team. Bryce Harper said last season that the Phillies, not the Yankees, now run the East as a large-market powerhouse. The Phillies’ payroll in 2024 reached $257 million, just $9 million less than the Yankees. The team has also invested over $900 million in stars, like, Trea Turner, $300M, Zack Wheeler, $118M and Aaron Nola, $172M in current years.

Is this cautious approach necessary for a team with the Yankees’ resources? The payroll-to-revenue ratio reveals a gap. The Yankees sat at 52 percent in 2023, after the Dodgers, 67 percent and Phillies at 62 percent. If such a trend continues, it could transform free agency. Mid-market teams like the Cubs, Mariners and Blue Jays could land stars they’d usually lose in bidding wars. It could also lower spending expectations for other big-market teams like the Red Sox and Giants. More importantly, it threatens the Yankees’ reputation. Once known for outspending everyone, they now seem hesitant. That hesitation could make it harder to attract top talent in the future.

Steinbrenner’s approach to link the Yankees with smaller-market teams feels disingenuous. With unmatched financial power, the Yankees should be setting the market, not retreating from it. Analysts aren’t just skeptical, they are outright offended. If this mindset continues, the Yankees risk losing more than just free agents; they risk losing their identity.