After a relatively slow start to the 2025- 26 off season, the Detroit Tigers finished off the winter with a flurry by signing starting pitchers Framber Valdez and bringing back future Hall of Famer Justin Verlander, bumping their payroll to its’ highest level in franchise history, with an opening day payroll projected at $$203,747,859, and a competitive balance tax (CBT) payroll on target for $$242,091,505, according to Cot’s Contracts.
In 2025, the Tigers had a projected opening day payroll of $145,318,033, and wound up with a CBT payroll of $186,627,318. (The difference between the two is explained below.) So the club was about $55 million below the CBT threshold of $241 million for the season.
The lowest tier of the tax brackets is at $244,000,000 for 2026, meaning that the Tigers are within $2 million of paying a tax on any player salaries that go above that threshold. The tax itself won’t be a big deal to Chris Ilitch and the front office, since any tax is paid on the incremental amount that the club exceeds the threshold. So let’s say the Tigers pick up a player at the trade deadline that- with a pro rated salary pushes the payroll to $250 million. They would pay a tax on the $6 million that they are above the lowest tax threshold. As a first time “offender” that would be 20 percent, or $1.2 million. Not such a big deal in the big picture.
What IS a big deal is how luxury tax payors are treated when it comes to how the system treats clubs who dare to cross the tax threshold. A CBT payor could lose a share of revenue sharing rebates the following season, and would suffer greater penalties should they sign a free agent who has declined a Qualifying offer. For example, the Tigers will forfeit their third highest draft choice for signing Framber Valdez, who declined a qualifying offer from the Houston Astros. If they made a similar signing as a CBT payor, they would lose their second highest draft choice AND lose $1 million in international signing bonus dollars.
We hasten to add that the collective bargaining agreement expires on December 1, 2026. We don’t exactly know how next winter’s free agents will be treated under a new agreement, but there is a good chance that players who receive qualifying offers in November will be treated under the terms of the current CBA.
Cot’s calculations include estimates for injury replacements, team share of player benefits and bonus pool contributions, minor league salaries, option buyouts, and everything else that can be quantified. What they don’t include is any mid season trades that either add or subtract from the payroll.
When we looked at the payroll back in November, before any qualifying offers were made and before any player or club options were picked up or declined, BYB took a gander at the clubs’ payroll heading into the off season. But then, Jack Flaherty exercised his player option for one season at $20 million, and Gleyber Torres accepted a qualifying offer of $22.5 million, rather than hit the free agent market, and the team’s payroll was suddenly right back up to about where they started without making any additions.
The club also picked up Drew Anderson as a free agent, at a $7 million salary on a one year deal. And then, there’s “the decision”. As it turned out, Tarik Skubal won his arbitration case and will be paid $32 million for the 2026 season.
PAYROLL SUBTRACTIONS:
The Tigers, for the most part, didn’t lose any players that would be disruptive to their plans going forward. Coming off the books are Alex Cobb and his $15 million deal, Kenta Maeda’s $10 million contract, Tommy Kahnle, John Brebbia, Jose Urquidy and Charlie Morton are gone, saving the club $37 million after taking out Torres’ $15 million salary for 2025. Gleyber and Flaherty will consume that much and a bit more.
The Tigers then doubled down by resigning part time closer Kyle Finnegan for two seasons with an average annual value (AAV) of $9.5 million, plus an option for a third season with a buyout of $2.5 million. The club then signed closer Kenley Jansen for one year at $9 million, plus an option for $12 million or a $2 million buyout, for an AAV of $11 million.
WHAT’S THE DIFFERENCE between major league (opening day) payroll and CBT payroll? There are three major differences between the two numbers.
-One is that, for tax purposes, player salaries are calculated using the average annual value (AAV), rather than just what they will be paid for the current season. So for example, Framber Valdez has a salary of $36.523 million for CBT purposes, although he will earn $22.826 million this season.
-The second difference is that all the players on the 40 man roster are included in CBT payroll, including those on injured reserve. The 14 minor league players add just under $4 million to the total.
-The third major difference is that each team pays about $18 million per season toward player benefits, plus $1.67 million toward the pre arbitration bonus pool, which are included in the CBT payroll number.
Most of the 14 players who are on the 40 man roster but not the major league roster will receive minor league pay, and accounts for less than $2.7 million in salaries, barring any players with guaranteed big league contracts who have been optioned. Cot’s does account for an average number of major league players being injured and replaced by others earning near major league minimum salary of $790,000. It does not account for in season moves, such as acquiring or trading away players during the season. That’s where the Tigers could put themselves into tax territory.
Following is a chart that shows the Tigers’ 2026 major league roster, salaries, and option status for the players on the 40 man roster.
| Player | Position | Age | Service time | Options | 2026 Salary | Contract |
|---|---|---|---|---|---|---|
| Skubal, Tarik | lhp-s | 29 | 5.114 | N/A | $32,000,000 | 1 y/$32M (26) |
| Báez, Javier | ss-cf | 33 | 10.089 | N/A | $24,000,000 | 6 y/$140M (22-27) |
| Torres, Gleyber | 2b | 29 | 7.162 | N/A | $22,025,000 | 1 y/$22.025M (26) |
| Valdez, Framber* | lhp-s | 32 | 6.163 | N/A | $22,826,679 | 3 y/$115M (26-28)* |
| Flaherty, Jack | rhp-s | 30 | 8.006 | N/A | $20,000,000 | 2 y/$35M (25-26) |
| Jansen, Kenley | rhp-c | 38 | 15.073 | N/A | $9,000,000 | 1 y/$11M (26)+27 cl opt |
| Finnegan, Kyle | rhp | 34 | 6.000 | N/A | $8,750,000 | 2 y/$19M (26-27)+28 m opt |
| Verlander, Justin* | rhp-s | 43 | 20.002 | N/A | $7,859,347 | 1 y/$13M (26)* |
| Anderson, Drew | rhp | 32 | 0.114 | 0 / 3 | $7,000,000 | 1 y/$7M (26)+27 cl opt |
| Mize, Casey | rhp-s | 29 | 5.111 | N/A | $6,150,000 | 1 y/$6.15M (26) |
| Greene, Riley | lf | 25 | 3.110 | 3 / 3 | $5,000,000 | 1 y/$5M (26) |
| Keith, Colt | 1b | 24 | 2.000 | 3 / 3 | $4,333,333 | 6 y/$28,642,500 (24-29)+opts |
| McKinstry, Zach | 2b | 31 | 4.099 | 0 / 3 | $4,200,000 | 1 y/$4.2M (26) |
| Torkelson, Spencer | 1b | 26 | 3.076 | 1 / 3 | $4,075,000 | 1 y/$4.075M (26) |
| Vest, Will | rhp | 31 | 4.100 | 2 / 3 | $3,950,000 | 1 y/$3.95M (26) |
| Carpenter, Kerry | rf | 28 | 3.057 | 3 / 3 | $3,275,000 | 1 y/$3.275M (26) |
| Vierling, Matt | rf | 29 | 4.026 | 1 / 3 | $3,225,000 | 1 y/$3.225M (26) |
| Rogers, Jake | c | 31 | 5.040 | 2 / 3 | $3,050,000 | 1 y/$3.05M (26) |
| Holton, Tyler | lhp | 29 | 3.047 | 2 / 3 | $1,575,000 | 1 y/$1.575M (26) |
| Brieske, Beau | rhp | 28 | 3.056 | 1 / 3 | $1,157,500 | 1 y/$1,157,500 (26) |
| Olson, Reese | rhp-s | 26 | 2.123 | 2 / 3 | $800,001 | 1 y (26) |
| Dingler, Dillon | c | 27 | 1.063 | 2 / 3 | $790,001 | 1 y (26) |
| Hanifee, Brenan | rhp | 28 | 1.069 | 2 / 3 | $790,001 | 1 y (26) |
| Hurter, Brant | lhp | 27 | 1.042 | 2 / 3 | $790,001 | 1 y (26) |
| Jobe, Jackson | rhp-s | 23 | 1.006 | 3 / 3 | $790,001 | 1 y (26) |
| Jones, Jahmai | 2b | 28 | 1.148 | 0 / 3 | $790,001 | 1 y (26) |
| Meadows, Parker | cf | 26 | 1.169 | 1 / 3 | $790,001 | 1 y (26) |
| Horn, Bailey | lhp | 28 | 0.102 | 1 / 3 | $780,001 | 1 y (26) |
| McGonigle, Kevin | ss | 21 | 0.000 | 3 / 3 | $780,001 | 1 y (26) |
| Melton, Troy | rhp | 25 | 0.068 | 3 / 3 | $780,001 | 1 y (26) |
| Cruz, Trei | cf | 27 | 0.000 | 3 / 3 | $63,600 | 1 y (26) |
| De Jesus, Enmanuel | lhp | 29 | 0.024 | 3 / 3 | $1,300,000 | 1 y/$1.3M (26) |
| Gipson-Long, Sawyer | rhp | 28 | 2.017 | 3 / 3 | $361,789 | 1 y (26) |
| Jung, Jace | 2b | 25 | 0.079 | 2 / 3 | $127,100 | 1 y (26) |
| Lee, Hao-Yu | 2b | 23 | 0.000 | 3 / 3 | $63,600 | 1 y (26) |
| Liranzo, Thayron | c | 22 | 0.000 | 3 / 3 | $63,600 | 1 y (26) |
| Madden, Ty | rhp | 26 | 1.035 | 3 / 3 | $380,700 | 1 y (26) |
| Miller, Jake | lhp | 25 | 0.000 | 3 / 3 | $63,600 | 1 y (26) |
| Montero, Keider | rhp | 25 | 1.011 | 1 / 3 | $298,054 | 1 y (26) |
| Pérez, Wenceel | cf | 26 | 2.000 | 2 / 3 | $385,350 | 1 y (26) |
| Smith, Dylan | rhp | 26 | 0.020 | 2 / 3 | $127,100 | 1 y (26) |
| Sommers, Drew | lhp | 25 | 0.032 | 3 / 3 | $127,100 | 1 y (26) |
| Sweeney, Trey | ss | 26 | 1.042 | 3 / 3 | $351,028 | 1 y (26) |
| Valencia, Eduardo | c-1b | 26 | 0.000 | 3 / 3 | $63,600 | 1 y (26) |
| Source: Cot’s contracts; | |
Salaries
-The major league minimum salary is $780,000 for the 2026 season, in the last year of the current collective bargaining agreement. That is an increase of $20,000 from 2025.
- This does NOT include pre- arbitration bonuses that were earned, for example by six Tigers’ players for the 2025 season:
- Dillon Dingler — $549,351
- Riley Greene — $378,111
- Spencer Torkelson — $318,620
- Colt Keith — $224,454
- Reese Olson — $224,416
- Wenceel Pérez — ~$219,000
These bonuses are paid out of a pool which is funded by all 30 MLB clubs.
- The Tigers had 25 players on the 40 man roster in 2025 who earned near league minimum while in the majors, and minor league salary while optioned to the minors. That number is down to just six players on the major league roster plus another 14 players on the 40 man roster, projected for the 2026 season.
- The Tigers will have at least three players- Jackson Jobe, Troy Melton and Reese Olson, who will start the season on the 60 day injured list, which will open two spots on the 40 man roster. Jobe may return later in the season, but Olson isn’t expected back until 2027. Melton could return by the end of May.
Options
A player may be optioned in three seasons in his career without clearing waivers. Only one option is used per season, so once a player on the 40-man roster is sent down, they can be freely moved between the majors and minors (after the requisite 10-day waiting period) up to five times in a given season. A player must be on optional assignment for at least 20 days to be charged with an option year.
Three Tigers are “out of options”, meaning that they can not be sent to the minor leagues without first being designated for assignment and clearing waivers. Those players are Zack McKinstry, Jahmai Jones, and Drew Anderson. Expect those players to have an edge on making the team versus a player who has options left.
In addition, any player with five years of service time may not be sent to the minor leagues without his consent. The ten Tigers in that category are Javier Baez, Justin Verlander, Gleyber Torres, Tarik Skubal, Jake Rogers, Framber Valdez, Casey Mize, Jack Flaherty, Kenley Jansen, and Kyle Finnegan.
Players with at least five years of major league service time can’t be optioned without their consent. They are noted with “NA” in the options column above. Detroit has eight players who have reached the five year milestone.
Players optioned this spring will not have their option counted until they remain in the minor leagues for 20 days. Those numbers will change shortly for those players unless they are called up to Detroit.
Outright Assignment
When a player is out of options, he must be taken off the 40-man roster, designated for assignment, and clear waivers before he can be sent outright to the minor leagues. A player who has been previously outrighted at any time in his career may decline the assignment and become a free agent immediately, or after the season if he is not returned to the 40 man roster.
For example, Jahmai Jones has not only used up his quota of options in his career, but he was also outrighted in 2024 by the New York Yankees, so he has the right to decline an outright assignment for the remainder of his career, either immediately or at the end of the season- the latter provided that he is not returned to the club’s 40 man roster.
A player who declines an outright assignment may lose any non guaranteed salary remaining on his contract.
Payroll
This would not be the first time that the Tigers paid a luxury tax. In 2008, which was Miguel Cabrera’s first season in Detroit, the club had a payroll of $ 161.8 million with a tax threshold of $155 million, so they paid a 22 percent tax on the overage for a penalty of $1.3 million. For the duration of Dave Dombrowski’s tenure in Detroit, the club avoided paying a luxury tax. In the first two seasons under Al Avila, as general manager, in 2016t and 2017,the club paid a taxes of $4 million and $3.66 million. For the record, the payroll was under the tax threshold prior to Avila’s signings in his first two seasons as GM.
While the Tigers’ payroll ranks 10th among the 30 MLB teams in 2026- both for opening day salaries and CBT payroll, the remainder of teams in their division rank in the bottom half of MLB. The Royals rank 18th and $143million. The Twins are 23rd, the White Sox 28th and Cleveland 29th with a payroll of just $77 million for opening day, or $94 M for CBT calculations. The median team payroll in major league baseball is around $200 million.
The 2027 class of Tigers free agents is a significant group, with Tarik Skubal, Casey Mize, Gleyber Torrez, Jack Flaherty, Jake Rogers, and Justin Verlander all eligible for free agency barring a contract extension. The 2027 arbitration class potentially includes 13 players.
Javy Baez, Framber Valdez, Kyle Finnegan and Colt Keith are the only Tigers with guaranteed contracts after the 2026 season, so the team will have a ton of payroll flexibility into the future. Obviously they’ll also have a lot of work to do to build a new starting rotation for 2027.