Shawn Armstrong’s New Deal Reveals Boundaries of Rangers Spending for 2026

If the Texas Rangers can’t spend what the Cleveland Guardians did on Shawn Armstrong, then the budget must be tight.

Texas Rangers relief pitcher Shawn Armstrong (43) pitches against the Houston Astros during the ninth inning at Globe Life Field. | Jerome Miron-Imagn Images

On Tuesday, Texas Rangers president of baseball operations Chris Young said he was in touch with all their free-agent relievers. That would include Shawn Armstrong.

He isn’t a free agent anymore and the terms reveal just how limited Texas appears to be in terms of spending this offseason.

Armstrong reportedly agreed to a one-year, $5.5 million deal with the Cleveland Guardians, per ESPN’s Jeff Passan. A look at Armstrong’s salary history reveals that it’s the most he’ll be paid for a single season. The deal comes with a mutual option.

Armstrong was, overall, Texas’ best reliever last season. In 74 innings he allowed batters to hit just .157. He ended the season as Texas’ closer with nine saves and went 4-3 with a 2.31 ERA. He fulfilled two of the criteria the Rangers have for their bullpen — a strike-thrower that gives the bullpen flexibility.

But Texas couldn’t keep him. Perhaps, more tellingly, it doesn’t appear as if they could afford him.

Rangers Payroll Update

Denis Poroy-Imagn Images

With each signing the Rangers’ payroll comes into clearer focus. Per Spotrac, the Rangers now have a projected total tax payroll of $185.7 million. That would put it 13th in the Majors. Texas still has $58.2 million in tax space to play with. That’s after the $7.25 million deal for catcher Danny Jansen and $1.125 million to reliever Tyler Alexander. It doesn’t include the terms of the contracts for pitchers Alexis Diaz and Chris Martin.

Does this mean that the Rangers made a non-competitive offer for Armstrong? That’s unclear. But the fact that he’s heading to Cleveland on the same amount of money Texas paid Martin last year as a 39-year-old reliever is a bit telling of just how much Young can spend this offseason.

So does Texas’ status as a three-time competitive balance tax payor, something Young referenced on Tuesday. He appreciated ownership’s desire to spend the past three seasons, but the transition from former manager Bruce Bochy to Skip Schumaker was driven by financial philosophy, something that led Bochy and the team to part ways.

As a three-time straight payor over the CBT, the Rangers are forced to pay a 50% tax on their overages. It’s what MLB calls a “repeater” penalty, and the only way to get away from the penalty is to keep the 2026 payroll below the $244 million luxury tax payroll.

That means that a player like Armstrong, as helpful as he was to the Rangers last year, now appears to be out of their price range. That makes Young’s stated goal — building a contending team on a payroll significantly less than in years past — much more difficult.