While the New York Yankees have always been known for their willingness to spend big to improve their rosters, the reason why they have been hesitant to make a hard chase for free agent star pitchers Blake Snell and Jordan Montgomery has been revealed and it makes a lot of sense.

The New York Yankees are in the early stages of preparation for the 2024 MLB season with almost all of their players down in Florida for spring training. After a fourth-place finish in 2023, the organization is hoping for a big turnaround this year with a roster that has a lot of potential.

If expensive pitcher Carlos Rodon and 2023 American League MVP Aaron Judge can stay healthy and play at their usual level this season that should already be a big boost. Then there is the fact that the franchise added All-Stars Juan Soto and Marcus Stroman to the roster in the offseason to strengthen the rotation and lineup.

Yet, there are still many who feel the Yankees are one big piece away from being a serious title contender in 2024.

New York Yankees would take a massive payroll tax hit by signing Blake Snell or Jordan Montgomery

That is why the team is reportedly still in the running to add National League Cy Young Blake Snell or Jordan Montgomery before the start of the season. The New York Yankees have been linked to the two talented pitchers for months but their interest has seemed lukewarm. Even with a belief around the league, the two starters may be willing to take short-term deals for a higher annual price.

Well, on Tuesday The Athletic revealed why the organization isn’t necessarily jumping at the chance to add Snell or Montgomery. According to the outlet, since the team is already being heavily taxed by MLB because of their current payroll, their “luxury tax rate would mean a one-year, $40 million deal for Snell actually would cost $84 million.”

Before the offseason started the New York Yankees top executives suggested adding a huge amount of payroll was not preferred and there were even hopes to possibly lower their payroll for 2024. This would explain their hesitancy since the tax penalty to add Snell or Montgomery to the rates they are looking for would be very harsh. The team has a payroll of $290 million heading into the 2024 season.

New York is at a point where they are well passed the threshold for multiple years which makes the penalty even higher for increasing their payroll.