How much will the New York Yankees have to pay to keep Juan Soto?

The New York Yankees face a significant financial crossroads with the impending free agency of their star outfielder Juan Soto at the conclusion of the 2024 season. With Soto projected to become the most coveted free agent in Major League Baseball, the crucial question for the Yankees is just how much they would be willing to spend to keep him wearing pinstripes. If you are wondering where the starting point is, then look no further than the unprecedented deal given by the Los Angeles Dodgers to Shohei Ohtani.

Currently, the Yankees do not have a hitter that comes anywhere close to the contribution that Juan Soto is making so far this year. Soto is putting up big numbers.

He is leading the New York lineup in the 2024 postseason hitting .319 with 15 hits and and OBP of .441 so far. Not only a power hitter, Soto has an uncanny knack for making contact. Patient and selective, Soto has drawn a team-leading 11 walks in the postseason.

Shohei Ohtani as a benchmark

Last offseason, the Los Angeles Dodgers made history by securing the services of Shohei Ohtani with a monumental contract of $700 million for 10 seasons. This astronomical deal not only reflected Ohtani’s extraordinary versatility as a pitcher and hitter, but also set a new standard for contract negotiations in Major League Baseball. The Dodgers’ decision to make this financial commitment to Ohtani has reverberated through the baseball world, raising questions about sustainability and market impact.

Although $700 million looks like an astronomical figure, 97% of Ohtani’s payment has been deferred without interest, which has led many analysts to place a real-value figure on Ohtani’s contract of $460 million.

Prospects for retaining Juan Soto

When evaluating the Yankees’ situation regarding Juan Soto, it is imperative to consider several key factors, such as Soto’s performance over the past few seasons, his age, his statistics, and his growth potential. At just 26 years old, Soto is at the peak of his earning potential and has already proven himself to be one of the most formidable hitters in the league. His ability to connect with power and consistency makes him a highly desirable asset for any team.

However, the exact amount the Yankees would be willing to pay to retain Soto is difficult to determine without knowing the specific details of the contract negotiations and the team’s financial strategy. While the Yankees are unlikely to reach the $700 million level that Ohtani commanded, it is plausible that they are prepared to make a significant investment to secure Soto for the long term.

Soto's agent, the controversial Scott Boras, has repeatedly said that he will not sit down to negotiate an extension with the Yankees until the season ends.

Considerations of the current market

The MLB free agent market is constantly evolving, influenced by a variety of factors, including player performance, team financial trends and competitive dynamics. In the case of the Yankees, competition from other teams willing to pay a high price for Soto’s services could increase his market value and, therefore, the cost of retaining him.

The Yankees also have other variables to take into account such as the money committed to players like Aaron Judge, Gerrit Cole, Carlos Rondón and Giancarlo Stanton.

How much will they have to pay Juan Soto?

The New York Post published an article noting that thanks to Soto’s age (25/26 when he becomes a free agent) and his unmatched skills, “he appears positioned to double Alex Rodríguez’s deal and set the record of the largest contract in history, depending [on] how you count.” Alex Rodriguez received a $252 million contract from the Texas Rangers in 2000, doubling the record contract for any US sport.

Spotrac, the website devoted to compiling the details of sports contracts, sets the market value for Juan Soto in the $550 million for 10 seasons neighborhood.