In a notable milestone for Major League Baseball, the average player salary has surpassed the $5 million mark for the first time, based on a recent study. As the new season kicks off, it has been reported that the New York Mets lead the league with the highest payroll, shelling out $322.6 million. This surpasses the defending champions, the Los Angeles Dodgers, who have a payroll of $319.5 million. In contrast, the Miami Marlins, spending $64.9 million, have the lowest payroll, ousting the Athletics who held this spot for the past three years.
While the Mets still hold the top spot, they have decreased their spending from a previous high of $355.4 million in 2023. In terms of overall average salaries, MLB saw a 3.6% increase, reaching $5,160,245. This follows a smaller 1.5% rise last year but is less than the significant 11.1% jump seen in 2023.
Teams like the Dodgers have significantly increased their payroll by $69 million, fueled by the acquisition of players such as Blake Snell, Michael Conforto, Tanner Scott, and Kirby Yates. Other notable increases come from Baltimore, which boosted spending by $66 million, followed by Arizona, San Diego, Philadelphia, and Detroit.
Various strategies were in play to manage payroll figures, such as the Dodgers utilizing deferred payments. For example, even though Shohei Ohtani is set to receive a $70 million salary, it is valued at $28.2 million in present-day terms, as the payment is scheduled to be completed by 2035. This strategic move placed him as the 18th highest-paid player. Other Dodgers players like Mookie Betts and Freddie Freeman also have deferred payments affecting their payroll positions.
Amidst these financial maneuvers, some clubs are cutting back. The Chicago White Sox reduced their payroll by $60.8 million following a disastrous season, while teams such as San Francisco, Miami, and St. Louis also made significant cuts. The Yankees, recent American League champs, decreased spending by $18.5 million.
Despite high payrolls, only five teams remain below the $100 million threshold, including the Marlins, A’s, Tampa Bay, White Sox, and Pittsburgh Pirates. Juan Soto’s record-breaking $61.9 million pay now outstrips the previous high of $43.3 million held by Max Scherzer and Justin Verlander at the Mets.
Many high-paying contracts still keep the tone in MLB; Phillies pitcher Zack Wheeler ranks second with $42 million, followed closely by Jacob deGrom and Aaron Judge at $40 million each. Out of 953 players, 526 boast salaries of $1 million or more. While this number reflects a slight decline from previous years, the concentration of top earners indicates particular economic dynamics.
Among the wealthiest, 15 players earn $30 million or more, while 66 players are at or above the $20 million mark, a reinforcing figure from recent years despite some slight fluctuations. Additionally, 177 players make $10 million or beyond, contrasting with a decrease in the median salary to $1.35 million, a drop from past figures and the lowest since 2015’s peak.
Average and median salary figures typically decrease as the season progresses, with younger, lower-paid players replacing veterans. As of the last observation, MLB’s calculated average salary at season-end was lower than its opening day mark—evidencing shifts over time due to roster changes.
Some players, initially stationed in the minor leagues at the start of the season, like Kyle Gibson, Jason Foley, and Hyeseong Kim, didn’t feature in the opening day payroll statistics. Salary assessments consider various financial commitments, such as prorated signing bonuses and trade conditions, reflecting the intricate nature of MLB’s financial landscape.