Yankees Spend Nearly $40 Million To Avoid Arbitration Battles
The New York Yankees just spent a significant amount on seven players, but it’s all part of their run-it-back approach. Each deal went to a 2025 returnee, paid to avoid arbitration. This is a process the Yankees notoriously avoid. They prefer to avoid criticizing their players, which would contradict the positive vibes they preach. Such is the case with their golden boy shortstop, Anthony Volpe. Rather than making bold changes, they’re simply paying to maintain the status quo.
Arbitration is a high-stakes process used when players with at least three years of MLB service time haven’t agreed on a contract for the upcoming season. Both the player and the team submit proposed salary figures and present arguments to support their case. An independent arbitrator hears both sides and then chooses one of the two submitted salaries; there’s no compromise or middle ground. The result is binding, making arbitration a tense and sometimes contentious part of baseball’s offseason negotiations.
Most of the one-year renewals made sense for valuable players such as the two-time all-star second baseman Jazz Chisholm Jr., who led the group with a reported $10.2 million deal. David Bednar, now firmly established as the Yankees’ closer, was rewarded with nine million. Both Luis Gil and Camilo Doval received $6.1 million, reflecting their importance to the starting rotation and bullpen, respectively. Jose Caballero secured two million, while Fernando Cruz earned a $1.45 million raise. When these key contributors were eligible for arbitration, the Yankees were quick to pay up, preferring to reward their performance rather than risk the uncertainty and potential tension of the arbitration process.
What’s truly baffling is that Volpe, despite a season of regression, was awarded $3.475 million, outpacing both Caballero and Cruz. The Yankees’ motivation for avoiding arbitration with their shortstop was clear. They didn’t want to risk publicly addressing his shortcomings after months spent promoting his potential. To be honest, his performance might shatter his confidence, so the organization chose to protect him, even at the expense of pursuing proven free agent options like Bo Bichette. In the end, they opted for a generous raise, prioritizing Volpe’s feelings over tough roster decisions.
With nearly $40 million shelled out just to avoid arbitration, the Yankees’ payroll now sits precariously close to Hal Steinbrenner’s self-imposed spending limit, topping $285 million. This ballooning expense leaves little room for maneuvering in the free agent market, making it likely that Cody Bellinger will be their lone major signing, if a deal gets done. Instead of investing boldly to improve the roster, the Yankees have handcuffed themselves, all but guaranteeing that the fear of crossing Hal’s threshold will dictate every move. Once again, GM Brian Cashman’s approach has left the franchise spending big just to stand still, with the boundary lines drawn tighter than ever.
