New York Yankees gain first base stability with Paul Goldschmidt

The New York Yankees have been one of the most aggressive ballclubs in Major League Baseball this offseason. In addition to investing $218 million over eight years via free agency in left-handed starting pitcher Max Fried, the Yankees acquired outfielder/first baseman Cody Bellinger and right-handed reliever through deals with the Chicago Cubs and Milwaukee Brewers Pitcher Devin Williams took over. The recent acquisition of right-handed pitcher Fernando Cruz along with catcher Alex Jackson from the Cincinnati Reds for catcher Jose Trevino bolsters the ballclub’s bullpen. As the Yankees continue to address roster deficiencies, four key things became clear in agreeing to a one-year, $12.5 million contract with first baseman Paul Goldschmidt, as YES Network’s Jack Curry first reported: Impact of the Competitive Balance Tax, Related Compensation with free agents who have turned down qualifying offers, financial concerns about signing another free agent to a $200 million contract and a willingness to take calculated risks on respected veterans in the world to enter the twilight of their careers.

New York Yankees and competition balance tax

According to the Associated Press, Major League Baseball’s commissioner’s office has released final 2024 payrolls and Competitive Balance Tax penalties. The Yankees were assessed a $62.5 million penalty as the third Competitive Balance Tax payer under the current collective bargaining agreement. The Yankees’ final 2024 payroll for Competitive Balance Tax purposes was $316,192,828, while the property tax threshold for the season was $237 million. Since the Competitive Balance Tax was implemented in 2003, the Yankees have paid $452 million in penalties. Last season, the Yankees paid a $32.4 million penalty based on a final 2023 payroll of $283,769,980 and a season property tax threshold of $233 million.

As a Competitive Balance Tax payer, it will be problematic for the Yankees to sign a free agent who was extended and declined a qualifying offer. Fried has already cost the Yankees the second-highest and fifth-highest picks in the 2025 draft as well as $1 million from his international bonus pool under qualifying offer rules. Now that Goldschmidt has agreed to play for the Yankees and first baseman Christian Walker has signed a three-year, $60 million deal with the Houston Astros, expect a different approach when it comes to free agent third baseman Alex Bregman goes. He was extended and declined a qualifying offer from the Astros, meaning that if the Yankees signed him, their third- and sixth-highest picks in the 2025 draft would be forfeited under qualifying offer rules. St. Louis Cardinals third baseman Nolan Arenado may reevaluate the parameters of his no-trade clause due to recent developments surrounding his former teammate Goldschmidt.

Financial responsibility for the New York Yankees

Financial responsibility is a priority for the Yankees, as evidenced by the Cubs agreeing to pay $5 million over the next two seasons for part of Bellinger’s contract. According to Cots Baseball contract, Bellinger has activated a $27.5 million player option for the 2025 season and has a $25 million player option for the 2026 season with a $5 million buyout . While some may scoff at the Yankees demanding $5 million from the Cubs to offset a small portion of Bellinger’s contract, for a Competitive Balance Tax payer looking for the smallest bargain, what counts is Attracting talent, every dollar.

The qualifying offer penalties associated with first baseman Walker’s free agency and an average annual value of $20 million for a ballplayer about to begin his age-34 season didn’t sit well with the Yankees. Pete Alonso wasn’t a viable option given the cost and defensive ability the Yankees want from a first baseman. Goldschmidt excelled in 14 major league seasons with the Arizona Diamondbacks and St. Louis Cardinals. The Yankees’ decision to sign Goldschmidt to a one-year contract is not without risk given his age and declining skills.

A 37-year-old first baseman, there has been a precipitous decline in Goldschmidt’s offensive production since winning the 2022 National League Most Valuable Player Award. Goldschmidt played in 154 ballgames last season and posted an on-base plus slugging plus (OPS+) of 98 OPS+, according to Baseball-Reference, where 100 is considered league average and takes into account external factors such as stadiums. In comparison, Goldschmidt posted an OPS+ of 120 over 154 ballgames during the 2023 season. He just signed a five-year, $130 million contract extension with the Cardinals, whose average annual value for Competitive Balance Tax purposes was $26 million, according to Cot’s Baseball Contracts.

Goldschmidt has several intangible assets that should serve the Yankees well in the short term. In addition to experienced leadership, stability at first base and a trophy case full of Gold Glove and Silver Slugger awards, Goldschmidt is the fourth Yankees ballplayer to win a Most Valuable Player Award, joining Cody Bellinger, Aaron Judge and Giancarlo Stanton. A one-year deal worth $12.5 million is a worthwhile investment considering how Goldschmidt outperformed the injury-plagued Anthony Rizzo last season. After making $17 million in 2024, the Yankees declined the 35-year-old Rizzo’s $17 million 2025 club option and instead opted for a $6 million buyout Cots Baseball Contracts.

New York Yankees third base concern

While Goldschmidt might be able to answer an infield question, third base now becomes the center of attention. If the Yankees are hesitant to commit Bregman to a long-term contract entering his age-31 season, does it make sense for the 33-year-old Arenado to waive the no-trade clause? According to Cot’s Baseball Contracts, Arenado is owed $74 million over the next three years but has one of the most complex contracts in Major League Baseball when it comes to deferred compensation, and the Colorado Rockies are making two conditional payments totaling $10 million US dollars if Arenado does not opt ​​out after the 2021 season.

The Yankees didn’t have much success with the Cardinals and Arenado after offering right-handed pitcher Marcus Stroman in a trade. The 33-year-old Stroman is due $18 million in 2025 and has a player option for $18 million in 2026 if he pitches 140 innings next season, according to Cots Baseball Contracts. With the Cardinals in the process of reshaping both their roster and payroll, anyone interested in Arenado will have to demand a favorable financial agreement regarding the remainder of his contract.

The New York Yankees quickly reinvented themselves this offseason after losing Juan Soto to the New York Mets in free agency. Although there is significant improvement, the Yankees still face the difficult question of what to do next at third base. Alex Bregman may be an obvious choice for many, but the financial and qualifying implications of the offer go well beyond a $200 million contract. The trade market could change dramatically for Nolan Arenado and the St. Louis Cardinals considering Paul Goldschmidt agreed to a one-year deal with the Yankees. In addition to providing veteran leadership and adding to the Yankees’ already strong lineup, Goldschmidt could hold the key to who will play third base in the Bronx next season.