The New York Mets’ decision to re-sign Pete Alonso has solidified their commitment to one of the league’s premier power hitters, but it has also come at a significant financial cost. Alonso’s two-year, $54 million contract, which includes a player option after the first year, will pay him $30 million in 2025—a record for a first baseman. While the deal offers the Mets short-term flexibility, the financial repercussions are far more substantial than the $30 million AAV suggests.
By signing Alonso, the Mets’ payroll jumped from approximately $295 million to $325 million, surpassing MLB’s highest competitive balance tax (CBT) threshold, commonly known as the “Cohen Tax.” This triggered an additional $32.1 million in luxury tax penalties, bringing Alonso’s total cost to the team to $62.1 million for the 2025 season. The Mets face a 95% tax on every dollar spent between $281 million and $301 million, and a 110% tax on every dollar above $301 million.
Alonso’s value to the Mets is undeniable. Since his debut in 2019, he has been a cornerstone of the team’s offense, hitting 226 home runs—second only to Aaron Judge during that period. He is also on the verge of breaking Darryl Strawberry’s franchise home run record, needing just 27 more homers to claim the title. Even in a relatively down year in 2024, Alonso ranked in the 93rd percentile in bat speed and the 89th percentile in barrel percentage, according to Statcast metrics.
Despite the financial strain, owner Steve Cohen has shown a willingness to spend heavily to build a competitive team. However, he has also acknowledged the need to balance long-term commitments with roster flexibility. The Mets already have over $100 million in AAV tied to Juan Soto, Francisco Lindor, and Brandon Nimmo through 2030, making it crucial to avoid overextending their payroll.
Alonso’s contract also sets the stage for a potential opt-out after the 2025 season. If he delivers a strong performance, he could become one of the most sought-after free agents in the 2025-26 class, alongside Vladimir Guerrero Jr. For now, the Mets will focus on maximizing Alonso’s production while navigating the financial challenges posed by the “Cohen Tax.” The team’s ability to balance these competing priorities will be key to their success in the coming years.
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