Where the SF Giants luxury tax payroll stands after latest addition

Earlier this week, the SF Giants added veteran pitcher Tyler Mahle on a one-year, $10 million deal. According to Cot’s, their luxury tax payroll now stands at $206.3 million, or about $37.7 million below the $244 million Competitive Balance Tax (CBT) for 2025.

Where the SF Giants luxury tax payroll stands after latest addition

The Giants still have plenty of flexibility to make further additions. Whether they choose to do so is a different story.

Every team has two sets of books, and balance both sets to manage the team’s payroll. The first set is the CBT payroll, which is simply the average annual value for each contract. 

The second set is a recording of the team’s operations. This factors in cash outflows and projected cash inflows. This set of books is usually kept private, but general estimates do become publicly available. I would stress that those estimates and likely incomplete pictures. Businesses do not publicly disclose their financial information unless they are required to do so.  

The Giants should have the motivation to spend in free agency after seeing a notable uptick in attendance in 2025. This was due largely to a growing core of players consisting of Rafael Devers, Matt Chapman, Willy Adames, Jung Hoo Lee, and Logan Webb.

While they should have the motivation to spend, that has not necessarily been the case this offseason. Tyler Mahle and Adrian Houser have been the most notable additions. Mahle is guaranteed to receive $10 million in 2026, and Houser is guaranteed to earn $22 million over the next two years.

These additions should give the Giants length in the rotation, and there is a good chance they are done adding to this unit. However, they are also light on upside and volume outside of Logan Webb and potentially Robbie Ray. 

So, the Giants still have plenty of room below the CBT threshold. Not only that, but they are also comfortably below the $225.3 million CBT payroll from 2025.

Teams often like to stay below the CBT threshold to give them room to add during the season. That is a strategy the Giants have typically employed. They are about $37.7 million below the CBT threshold, but that does not mean they will spend up to that number. 

The Giants still have some needs to address this offseason, including the bullpen and right field. While they may look for low-cost deals to bolster the bullpen, they need to upgrade right field. And, they have the flexibility to do so.