Major League Baseball’s biggest markets have always outspent their smaller competitors. This most recent offseason, however, narratives of the extreme gap between teams have left many wondering whether certain teams are competing at all. How teams allocate their resources reveals much about their competitive philosophy and financial strategy. Based on 2024 revenue and 2025 payroll data, we can identify several distinct approaches to baseball's money game. While there are numerous other external costs associated with these teams that can’t be accounted for uniformly, this can still give us a decent incite into a team’s current financial management strategy. Let’s take a look.

The All-In Investors (90%+ Payroll/Revenue)

New York Mets (90.0%)

The Mets stand alone in this category, with owner Steve Cohen seemingly determined to buy a championship at all costs. Spending a staggering 90% of their $444M revenue on payroll, the Mets have embraced a "whatever it takes" mentality. Cohen's deep pockets allow for this aggressive approach, though the sustainability remains questionable. When your payroll includes $71M in luxury tax penalties alone, you're playing a different game than everyone else.

The Premium Contenders (65-75% Payroll/Revenue)

Los Angeles Dodgers (73.0%), Toronto Blue Jays (71.5%), Philadelphia Phillies (67.2%), Arizona Diamondbacks (66.7%), San Diego Padres (63.8%)

These teams are serious about winning now, investing heavily in talent while maintaining some financial flexibility. The Dodgers lead this group with the highest absolute revenue ($752M) and payroll ($549M), demonstrating that even big-market teams are willing to spend proportionally high amounts to chase championships. This, combined with the notorious last few offseasons of deferred money contracts, puts the Dodgers at the top of this group. The Diamondbacks stand out for making this tier despite a relatively modest revenue base ($328M), showing their commitment to building on 2023’s World Series appearance.

The Balanced Competitors (45-60% Payroll/Revenue)

Texas Rangers (57.1%), Los Angeles Angels (52.3%), Kansas City Royals (51.5%), Baltimore Orioles (49.9%), New York Yankees (49.7%), Detroit Tigers (49.3%), Houston Astros (48.5%), San Francisco Giants (47.5%), Minnesota Twins (47.4%), Seattle Mariners (46.1%), Atlanta Braves (46.1%)

These teams strike a balance between competitive spending and financial prudence. Surprisingly, the Yankees fall into this middle tier despite their "Evil Empire" reputation, allocating just under half their massive $728M revenue to player salaries. The Braves stand out as particularly shrewd operators, generating $510M in revenue while keeping payroll relatively modest. The Orioles and Royals demonstrate that smaller-market teams can compete in this range when well-managed.

Resting on Laurels (35-45% Payroll/Revenue)

Colorado Rockies (44.7%), Oakland Athletics (43.4%), St. Louis Cardinals (42.9%), Cincinnati Reds (42.6%), Washington Nationals (42.3%), Boston Red Sox (42.1%), Milwaukee Brewers (40.8%), Cleveland Guardians (39.4%), Chicago Cubs (36.4%)

These teams seemingly prioritize financial returns over maximizing competitive advantage. The Cubs are the most notable inclusion, with the third-highest revenue in baseball ($574M) but a payroll percentage that ranks 26th. The Red Sox similarly leverage their massive market and iconic status to generate $574M in revenue while spending just 42.1% on payroll. The Cardinals, with their storied history and loyal fan base, have similar revenue to the Twins but choose to spend less proportionally. A dishonorable caveat here is the Oakland Athletics, who have tanked their revenue potential the past few years, moving out of loyal Oakland and into a minor league stadium in the hopes of green, money-filled pastures in Las Vegas.

The Bare Minimum Brigade (Below 35% Payroll/Revenue)

Pittsburgh Pirates (34.5%), Tampa Bay Rays (33.8%), Chicago White Sox (31.6%), Miami Marlins (27.0%)

These teams spend the least on talent relative to their income. Both Florida teams sadly make an appearance here. The Rays have turned this approach into an art form, consistently fielding competitive teams despite minimal investment, even making the World Series recently in the process. The Marlins take the crown for frugality, spending just 27% of their revenue on player salaries, the lowest in MLB by a significant margin, to the point of near complaint from the MLBPA. The White Sox, meanwhile, are looking to bounce back after a historically bad season, which makes their lack of spending all the more worrying for their fans.

Conclusion

The wide range of spending approaches across MLB reflects the diverse financial realities and competitive philosophies of team ownership groups. While some teams like the Mets and Dodgers spare no expense in pursuit of championships, others like the White Sox and Marlins focus on maximizing return on investment through player development, analytics, and guaranteed revenue sharing. Let’s see how each approach turns out in 2025, both on the field and on the balance sheets.