The MLB non-tender deadline is the final Friday before Thanksgiving, making cut day this year on November 20. It's the easiest way for teams to cut salary from their roster by opting not to tender a contract to arbitration-eligible players that they feel have gotten more expensive than their production warranted. Last year for the Texas Rangers, it meant making the painful decision to say goodbye to Adolis Garcia and Jonah Heim.
While a case can certainly be made that those two World Series heroes had outlived their usefulness in Arlington, a big part of the motivation to move on was to follow through on Ray Davis's edict to lower payroll. Once again, we could see financial concerns trump baseball strategy when it comes to this deadline, but first, we need to get the lay of the land to see what the Rangers' books look like.
The numbers vary a bit depending on the source you use, as well as what type of payroll you're looking at. The major motivation behind last offseason's purge had to do with the luxury tax, which Texas had exceeded in each of the prior three seasons, setting the scene for maximum penalties should the club cross the threshold again. The Rangers were able to cut enough to stay under, posting a tax payroll of $215 million in 2026.
That tax payroll is calculated by using the average annual value of the contracts on the books, rather than each individual player's salary. That means that escalating contracts don't hurt more down the road than they do at the beginning. At this point in the year, we're also using projected arbitration values to come to an estimate, since those hearings typically happen in the New Year.
With that in mind, the projected $230 million payroll per Spotrac that the Rangers have slated for 2027 could pose a real problem.
It's hard to see how the Rangers can upgrade the roster amid payroll constraints and labor uncertainty
Texas is already facing a $15 million increase for 2027, and that's before filling any of the various holes the roster has. While they can free up some space via non-tenders and/or trades, there are no obvious candidates who will save them significant money without opening new holes, as there was with Garcia and Heim last offseason.
The most difficult part of this conundrum is the uncertainty that comes from both inside and outside the organization. The Rangers still haven't given any clarity on what the 2027 budget will look like. On top of that, the league and the players' union haven't been able to come to an agreement on a new collective bargaining agreement, meaning a lockout is likely beginning on December 1, while the two sides battle to determine if a salary cap, which would be a fundamental change to the labor environment, is part of MLB's future.
There's a very slim chance that the two sides come to an agreement on a one-year extension of the current CBA, which would put the luxury tax threshold that the Rangers presumably want to avoid at $247 million.
Key relievers Jakob Junis and Tyler Alexander are set to hit free agency, further weakening a bullpen that was uneven in 2026. On top of that, the Rangers need to add pop to the lineup, find a second baseman, and could also be interested in bolstering the starting rotation and the catching depth.
Assuming that a miracle happens and the MLBPA and owners agree to extend the status quo to avoid a work stoppage, that would leave Texas with less than $17 million to satisfy all of those needs while staying under the projected $247 million tax line. That's virtually impossible.
Therefore, the payroll is in a tough spot, and without big, bold moves, Chris Young will be handcuffed when it comes to improving a roster that has some solid pieces but also needs significantly more firepower to be considered a true contender. Given the overall weakness of the AL West, it's an unfortunate situation, and it seems like the Rangers will not be able to capitalize on the opportunity in front of them.
