How Phillies Payroll Looks in Comparison to Last Season's Historic Number

Not every free-agent and trade decision made by the Phillies since the offseason before 2022 has been a success, but they've continued to show an appetite to spend what it takes.

The extreme examples of the Dodgers and Mets have skewed how the perception of "going for it" looks, overshadowing how relentlessly Phillies ownership has tried to put the finishing few touches on a potential World Series roster that has done more in the regular season but less in the playoffs four years in a row.

Last year's Phillies were the most expensive in team history at $314,329,912, a number that generated a Competitive Balance Tax bill of approximately $56 million.

Between payroll and tax, that was approximately $91 million more than the most expensive prior year in team history.

The penalties steepen drastically when a team exceeds the tax at least three years in a row as the Phillies have. Last season, nine clubs were above the threshold of $241 million and five of them — the Dodgers, Mets, Yankees, Phils and Rangers — were subject to the harshest penalties because it was at least the third consecutive season.

It all starts somewhere

The first time in franchise history the Phillies exceeded the tax was 2022 after an offseason capped by a $100 million contract for Nick Castellanos and a $79 million contract for Kyle Schwarber. They were barely above the $230M tax threshold that year at $237.1 million.

In retrospect, seasons like this really stick out because the difference between exceeding the tax and beginning that clock is basically one signing of Jeurys Familia. Obviously, everything is clearer in hindsight, but this is why teams try to maintain a degree of financial responsibility even when the perfect free agent may be out there for another $20 million annually.

The tax bills

The Phillies' tax bill in 2022 was just under $3 million.

Their tax bill in 2023 was just under $7 million.

Their tax bill in 2024 was just over $14 million.

Their tax bill in 2025 was just over $56 million.

The massive increase

The final tax bill sticks out and hurts the most, obviously. The repeat nature wasn't the only reason for the huge increase, the bigger factor was the Phillies being $73 million past the $241M threshold.

• It was Year 1 of Zack Wheeler's three-year, $126 million, so his annual average value — the number applied to the Competitive Balance Tax — went from $23.6M to $42M.

• There was the $18.5M combined spent on Max Kepler and Jordan Romano.

• There were the annual raises due to all pre-arbitration and arbitration-eligible players.

• There were the in-season acquisitions of Jhoan Duran and Harrison Bader, which added approximately $3M.

It resulted in the most expensive season, by far, in Phillies history.

This one looks even more expensive at approximately $318 million, which would generate an even larger tax bill for 2026. That number, of course, will change various times based on trades, signings and players reaching incentives between now and when it is actually calculated at season's end.

Money off the books

This past offseason, the Phillies shed:

• The $18.5M of Kepler and Romano.

• They lost Ranger Suarez, who made $8.8M.

• They reduced J.T. Realmuto's AAV by $8M in a new three-year contract.

• They traded Matt Strahm, who was set to make $4.5M.

• They no longer were on the hook for David Robertson's $6M salary.

Money on the books

That's $45.8 million of theoretical savings, but the Phillies also added payroll in other forms.

• They signed Schwarber to a new contract worth $10.25M more annually than his previous.

• They signed Adolis Garcia for $10M.

• They signed Brad Keller to a two-year deal with an AAV of $11M.

• Jesus Luzardo's salary rose by $4.4M, Duran's by $3.4M, Bryson Stott's by $2.7M and Alec Bohm's by $2.5M.

Those moves and raises alone cancel out the aforementioned $45.8 million of savings.

Still willing to spend

Despite all of this, the Phillies were still willing to spend another $200 million on Bo Bichette, a contract that would have carried an approximate AAV of $28.5M. Bichette, of course, opted instead for one of the most player-friendly deals ever with the Mets, a no-brainer for a guy looking for the most money.

The Dodgers can acquire anyone they want, and Mets owner Steve Cohen is worth at least twice as much as any other team's. These are two extreme examples that have already altered the course of baseball. Without those two ownership groups, there would be no $765 million contract for Juan Soto, no obscenely high short-term AAVs like $60 million for Kyle Tucker, and the entire landscape of the league would be different.

Bryce Harper: “I love what the Dodgers do, obviously.”

(Via @TimKellySports) pic.twitter.com/t7SNXrdFAC
— OnPattison (@OnPattison) February 15, 2026

Shackles soon removed

It's the final year the Phillies are on the hook for the $20M annual salary of Castellanos.

Taijuan Walker's $18M comes off after 2026.

Garcia and Jose Alvarado will free up $19M combined, though one or both could play their way into staying.

Bohm's $10.2M will come off and he seems likely to test free agency.

That's nearly $70M and could make building for the near future much less complicated, though the expected labor dispute between players and owners at season's end looms over everything to do with the dollar.