According to new analysis by The Athletic's Andy McCullough , the New York Yankees are right where they should be for a team that spends as much as they do: dominating.
The analysis plotted teams on a chart where the x axis represented the average payroll since the beginning of the current MLB Player's Association collective bargaining agreement, while the Y axis represented win percentage in regular season during that same time.
The graphic, shared by a Houston Astros fan on X, the platform formerly known as Twitter, sorts teams into four categories: powerhouses, such as the Yankees, over-achievers, who spend less and win more, the middle and the basement. One team, the Los Angeles Angels, stood out as an outlier, not producing as much as would be expected for a team that spends the way they do.
Oh man. @SanAntonioTim is going to have a field day with this graphic.https://t.co/Lo2FGK8aUn Which MLB teams are actually trying? Charting a divided league’s haves and have-nots pic.twitter.com/36dWbaptZf
— Daniel Meyer (@TheAstrosLocker) May 21, 2025
On the Yankees, who spent $354 million on player expenses in 2024, McCullough explained that, though they've been outspent by the Los Angeles Dodgers and New York Mets, the Pinstripes' place at the top just makes sense.
"The Yankees have appeared in the postseason in seven of the past eight years; their payroll has ranked in the top six each season," McCullough wrote. "The conversation about baseball’s haves and have-nots bled into the offseason, as the Dodgers, Yankees and Mets tossed around hundreds of millions while nine teams declined to sign any player to a multiyear contract."
Other teams joining the Yankees in the "Powerhouse" category include the Atlanta Braves, Houston Astros, Philadelphia Phillies and San Diego Padres. All Powerhouse teams have spending that falls beyond the competitive balance tax (CBT) threshold, where teams are taxed by the league for spending over a $235.25 million on payroll. The MLB introduced the CBT in 1997 to increase competition from smaller teams, though clearly it has not deterred heavy hitters from investing big money in their players.
Though some teams, like both out of New York, have an expected presence in the Powerhouse quadrant, McCullough explained that others — like the only recently successful Padres and Phillies — earned their way there through spending on free agents and ballpark experience that propelled them to contender status.
More must-reads:
Get the latest news and rumors, customized to your favorite sports and teams. Emailed daily. Always free!