MLB average salary rose to record $4.5M last year

Major League Baseball’s average salary rose 7.1 per cent last year to a record $4,525,719 (U.S.), according to the annual report the issues by the players’ association, but several teams appear to be cutting payroll for 2024.

After declining in 2021 following the pandemic-shortened season, the average rose 23 per cent over two seasons. The 2022 average marked a 14.8 per cent increase from 2021. Union figures are based on the 2023 salaries, earned bonuses and prorated shares of signing bonuses for 1,038 players on Aug. 31 active rosters and injured lists, before active rosters expanded for the remainder of the season.

Luxury tax payrolls, based on 40man rosters and average annual values, increased 12.2 per cent in 2023, according to MLB.

The Los Angeles Dodgers have topped off-season spending, giving two-way star Shohei Ohtani a record 10-year, $700-million contract and pitcher Yoshinobu Yamamoto a 12-year, $325-million deal.

With some significant free agents still on the market, the New York Mets, San Diego, Los Angeles Angels, San Francisco, Boston, Colorado, Minnesota and the Chicago White Sox are among the teams on track to cut payroll from last year.

“In the face of record revenues of our game that will continue to spiral upward, we have major market teams, many of which would otherwise be competitive teams, simply cutting payroll and not investing in competitiveness,” said agent Scott Boras, who has yet to reach deals for free agents Blake Snell, Jordan Montgomery, Matt Chapman and J.D. Martinez.