The Oakland Athletics, long known for their frugal approach to team building, are making headlines with unprecedented spending ahead of their temporary relocation to a minor league park in Sacramento. After decades of austerity, the club is finally opening its checkbook, driven by unique financial circumstances and collective bargaining agreement (CBA) mandates.
Big Contracts Signal a New Era
Weeks after signing pitcher Luis Severino to a three-year, $67 million deal—the largest contract in franchise history since 2004—the A’s have now extended designated hitter Brent Rooker for five years and $60 million. The Rooker extension includes $30 million over the first three seasons and a vesting option for a sixth year worth $22 million, potentially escalating by another $10 million. These deals represent a significant departure from the team’s historically stingy approach.
Revenue-Sharing Windfall Fuels Spending
The A’s financial transformation is tied to their eligibility for MLB’s revenue-sharing program, a benefit typically reserved for teams in smaller markets. Oakland’s protracted quest for a new stadium has created an exception, allowing the team to receive a $70 million revenue-sharing payout in 2025. This marks the first year the A’s will receive the full amount after a phased increase since 2022.
Under the terms of the CBA, teams must spend at least 150% of their revenue-sharing payouts to improve on-field performance. For Oakland, that means a payroll target of $105 million—a figure that would shatter their previous record of $99 million set in 2019.
Challenges in Hitting the Benchmark
Despite recent moves, the A’s still face scrutiny from the MLB Players Association (MLBPA). The union has the right to file a grievance if it believes revenue-sharing funds are not being used to enhance the team’s competitive standing. The team’s estimated 2025 payroll of $97 million, as projected by FanGraphs, leaves them $8 million short of the $105 million threshold. Failure to reach this benchmark could invite penalties and further grievances, a situation the A’s have faced in the past.
A Temporary Home in Sacramento
The A’s will play at a Triple-A stadium in Sacramento for at least the next three years while planning a move to a permanent home in Las Vegas by 2028. The relocation to Sacramento underscores the urgency of meeting spending requirements to avoid complications during this transitional phase.
A History of Grievances
The MLBPA’s vigilance over revenue-sharing compliance is not new to Oakland. In 2018, the union filed grievances against the A’s, along with the Marlins, Pirates, and Rays, for allegedly failing to use revenue-sharing funds to improve their teams. While these grievances were unresolved during the 2021-2022 CBA negotiations, they highlight the ongoing tension between small-market teams and the union.
The Path Forward
The Rooker and Severino deals, along with the acquisition of Jeffrey Springs to bolster the rotation, demonstrate the A’s commitment to spending and improving their roster. However, with just $8 million separating them from the required payroll target, the team will need to make additional moves to avoid union scrutiny.
As the A’s navigate their temporary relocation and eventual move to Las Vegas, their newfound spending habits mark a dramatic shift for a franchise that has long prioritized thrift over star power. The coming months will reveal whether these efforts are enough to satisfy both MLB’s financial rules and their fans’ expectations for a competitive team.
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