Angels 2026 Payroll Is Currently $80 Million+ Lower Than 2025 Payroll

There is a difference between a team's salary for payroll tax calculations and a team's actual payroll expenses. The former is calcuated using the average annual value of a contract. The latter is measured in actual payment to players. There is often a difference and in the Angels case, that difference is stark and paints a very interesting picture.

Let's look at a quick example on how those numbers can deviate. A player signed for 5 years at $100 million will have a luxury tax hit of $20 million per year. However, that player might actually receive $10 million in each of the first two seasons, $20 million in year three, then $30 million the final two years of the contract. Teams will often backload contracts to free up immediate spending cash but businesses tend to operate according to the actual bottom line.

In looking at Spotrac data the Angels are clearly well below recent spending levels, with the level of drop somewhat uncertain due to the lack of information about Anthony Rendon's deferment. Let's Take a look at the numbers.

The Angels actual cash payroll is down from $230 million to $138 million.

Angels 2025 Payroll Numbers from Spotrac | https://www.spotrac.com/mlb/los-angeles-angels/overview/_/year/2025

The picture above shows the Angels spending in 2025. Their luxury tax calculation was just over $220 million but their actual cash outlay was a hair over $230 million. This is partially due to the backloaded contract of Anthony Rendon.

Rendon's 7 year $245 million contract has an average annual value of $35 million but he was actually paid $38 million. So the Angels actual outlay was $3 million more than his luxury tax hit.

Evan White received $2 million while not being on the roster. The remaining difference comes from a variety of small increments.

Now look at the huge drop heading into 2026.

Angels 2026 Payroll Number from Spotrac. | https://www.spotrac.com/mlb/los-angeles-angels/overview/_/year/2026

By measure of the luxury tax calculations, the Angels are only $27 million lower than last year's payroll. And that is the number the team will likely tout as they claim to want to compete in 2026. But a look at the actual cash outlay shows a huge decline.

Not many details have emerged about the restructuring of Anthony Rendon's final $38 million. The expected term is 3 to 5 years but that is all we know. For this purpose, Spotrac has fully eliminated Rendon's cash outlay from its projected cash payroll calculation.

Rendon's $35 million luxury tax hit is still calculated in the luxury tax calculation. However, with Taylor Ward traded and the contracts of Tyler Anderson, Kenley Jansen, and Kyle Hendricks expiring the Angels have seen significant payroll fall off the books. With only a combined $11 million in free agent spending thus far, they have yet to even replace Tyler Anderson's salary on the ledger.

Just how far under last year's spending level are the Angels?

That is impossible to confirm until details of the Rendon buyout are available but we can calculate it pretty closely. Currently, if we zero out Rendon the Angels are $92 million below 2025 level. If Rendon gets paid out over 3 years that is roughly $13 million per year, putting the Angels $79 million lower in payroll. If paid out over 5 years, that is about $7.5 million per season, putting the team closer to $85 million lower.

The smart money would be on the Angels having an actual cash payroll that is about $80 million or so lower today than it was during the 2025 season. Most likely this is a direct reflection of the team losing its guaranteed television money. Hopefully some or all of this payroll is added back into the team and fans can have some new players to cheer.

But for a franchise that has consistently hovered around $220 million in actual cash payroll in recent years, this is a very notable drop.