The average MLB salary in 2024 was a record $4.66 million. In 2000, the average MLB player made $1.89 million. That’s nearly a 150% increase over the past 25 years.
With that in mind, it should come as no surprise that most of the highest-paid MLB players in history are either currently active or recently retired.
The money involved in the game is simply on another level right now.
And these players make a $4.66 million salary look like chump change. Let’s break down the highest-paid MLB players of all time.
How MLB Salaries Are Structured
When a player is selected in the MLB draft and signs a contract, they receive a signing bonus in the form of a lump sum payment. Throughout the course of the draft, MLB assigns a value to each draft slot. At the end of the draft, a team can divide that total up amongst their draftees however it sees fit. Usually, the higher the pick, the bigger the bonus, but that isn’t always the case. In some situations, a team might try to persuade a player to sign with a bigger bonus.
Players who were not born in the U.S. (and not playing collegiate baseball in the U.S.) enter through MLB’s international free agency system. Each team gets a fixed amount of money to spend on international free agents and the teams are free to use this money in any form or fashion.
After that, players hit the minor leagues. The salaries vary depending on the level, with High-A being $27,300 and Triple-A being $35,800. Once a player is called up, their salary is bumped to the MLB minimum, which was $740,000 in 2024.
After three years of league-minimum contracts, a player is eligible for arbitration for the next three seasons. This is where the team and the player plead their case to a neutral arbitrator in order to determine the dollar value of the next season’s contract.
After three years of arbitration, a player is eligible to become a free agent and negotiate on the open market.
Highest Single-Season Salaries in MLB History
Career Earnings Leaders in MLB History
The Evolution of MLB Salaries
To put it simply, MLB salaries are exploding. There are 12 MLB teams with a 2025 projected payroll of at least $200 million. In 2015, there were just two teams with a $200+ million payroll.
The MLBPA is a particularly strong union and the lack of a traditional salary cap means teams don’t really have a limit, or at least not one imposed by the league.
As a result, it’s hard to imagine MLB salaries doing anything but increasing in the future.
Quirky MLB Contract Fun Facts
- The longest MLB contract in history was signed just a few months ago, when the New York Mets inked Juan Soto to a 15-year deal.
- Jayson Werth worked his preferred uniform number into his contract with the Washington Nationals in 2010. Werth had it in writing that he would be wearing No. 28 (which was already assigned to Mike Morse at the time) and the Nationals made it happen.
- Former Milwaukee Brewers relief pitcher Takashi Saito had a $25,000 clause in his 2011 contract, which would be triggered if he started the All-Star Game. Saito never started a single game in the majors.
- Adam Dunn’s contract with the Chicago White Sox (2011–14) had a $25,000 Gold Glove clause. Dunn was the team’s DH.
- Heinz was going to give Joe DiMaggio a $10,000 check if his legendary hitting streak hit 57 games to match the company’s "57 varieties," but DiMaggio fell one game short.
- Former Houston Astros starting pitcher Roy Oswalt was gifted a bulldozer after winning Game 6 of the 2005 NLCS. But because any gifts had to be disclosed, it was worked into his contract and jokingly referred to as the "bulldozer clause."
More MLB on Sports Illustrated
This article was originally published on www.si.com as Highest Paid MLB Players of All Time (Single Season and Career).
