The Texas Rangers are heading into an offseason that could define the next stage of their push toward being a playoff team in 2027, but the biggest question hanging over them is a simple one: how much money will they actually be allowed to spend?
Even president of baseball operations Chris Young doesn’t have the answer yet.
“I can't speak to that,” Young said earlier this week. “I don’t know what the payroll will be or what the decisions will be. Those are conversations that will come in the in the coming weeks.”
That conversation starts with ownership, and it comes after a year in which Young was working under a very different directive. Last offseason, owner Ray Davis wanted payroll trimmed after three straight years of spending into the competitive balance tax system with just one World Series title to show for it.
The result was a significant drop in spending. According to Spotrac, Texas carried a total tax payroll of $238.9 million and a projected cash payroll of $251.7 million. In 2026, those figures fell to $210 million in total tax payroll and $205 million in projected cash.
Young cut into the number mostly by letting free agents leave. He did make two trades that added payroll, including one that sent Marcus Semien to the New York Mets for outfielder Brandon Nimmo, a move that saved Texas some money long-term. The other was the acquisition of MacKenzie Gore, which brought in his $5.6 million arbitration salary.
The free-agent additions who finished the year with the Rangers, whether on the active roster or the injured list, cost $17.5 million. Texas also carried roughly $10 million in dead money tied to players who had signed MLB deals and later been released.
Add in-season spending, and Young spent less than $30 million to bolster the roster.
Now the focus shifts to 2027, and the Rangers’ current commitments suggest they could have room to work with. Texas has $142.1 million in total tax payroll and $118.75 million in projected cash committed to eight players for 2027.
That group includes Joc Pederson, Kyle Higashioka and Jakob Junis, all of whom have mutual options. If none of those options are exercised, the Rangers would be down to the cash committed number, leaving them with more than $100 million to spend against the $247 million competitive balance tax threshold.
That still isn’t the full picture. The Rangers also have arbitration-eligible players to account for, along with pre-arbitration players who are paid the league minimum based on service time.
And with MLB owners and the MLB Players Association working toward a new labor deal, there is expected to be a lockout on Dec. 1 if no agreement is reached. That new CBA could change what Young has to budget for in both arbitration and pre-arbitration.
So yes, there appears to be money available. The real issue is whether ownership gives Young the green light to use it.
When Young said he didn’t know what he could spend, that uncertainty could come from several places. But in the end, Ray Davis’ approval will decide how aggressive the Rangers can be, especially before Dec. 1.
After last offseason’s payroll squeeze, Texas is not facing the same CBT pressure now. That at least opens the door for Davis to let Young be more aggressive than he was a year ago.
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