New York’s owner opens up on the financial realities surrounding the team.

The MLB owners meetings took place this week and, while in attendance, New York Yankees owner Hal Steinbrenner said that fans shouldn’t necessarily get used to seeing New York with the $300+ million payroll that they have this season – even as they pursue a deal with Juan Soto.

“I’m gonna be honest, payrolls at the levels we’re at right now are simply not sustainable for us financially,’’ Steinbrenner said, per Dan Martin of The New York Post. “It wouldn’t be sustainable for the vast majority of ownership [groups], given the luxury tax we have to pay.’’

But Steinbrenner said that doesn’t mean the Yankees won’t be able to afford Soto as he gets ready to hit the open market as a first time free agent this upcoming offseason.

“We’ve got a considerable amount of money coming off [next offseason],’’ Steinbrenner explained. “We didn’t have a considerable amount of money coming off last offseason, which is why we’re at where we’re at.”

The Yankees payroll sits at $305 million in 2024, with $202 million already committed for next year.

“I’ve been a broken record. I don’t believe I should have a $300 million payroll to win a championship,’’ Steinbrenner said. “I believe I need a good mix of veterans, who are going to make a lot more money, but, also, we’ve put a lot of money into our player development system in the last 5-10 years. And in my opinion, we have one of the better ones in baseball now.”

While Steinbrenner doesn’t believe the Yankees should have a $300 million payroll going forwards, adding Soto on a long-term deal is going to take a large chunk that will need to be lessened elsewhere.

Yankees back to winning ways with Juan Soto

The 25-year-old Soto is raking at the plate, slashing .316/.415/.551 with 11 home runs and 37 RBI across 224 plate appearances this season. Not only that, but Soto, who is not known for his defensive prowess, has actually done a tremendous job in right field, posting an 8.5 UZR/150 thus far.

Plus, Soto has really ingratiated himself with the New York fans. He frequently engages with the Yankees faithful during games and has instantly become a fan favorite.

But most importantly, the Yankees are back to their winning ways now that Soto is in the fold. After a down year last season, New York currently sits at 33-17 and holds a two-game lead over the Baltimore Orioles in the American League east standings. Aaron Judge is heating up, the starting pitching has held on, and reigning Cy Young award winner Gerrit Cole is set to return before too long.

While it’s a long season and a lot of challenges could pop up for New York between now and October, the Yankees seem to be on track to make some noise in the MLB postseason this year.