The Philadelphia Phillies are no strangers to spending big money. As of 2025, they’ll have the third-highest payroll in Major League Baseball, following the Dodgers and Mets. Their consistent spending has pushed them into a luxury tax bracket, which comes with a hefty 110% penalty on any amount over $301 million.
So, how do the Phillies continue to improve their team while managing the budget? The strategy involves signing players to short-term, “prove-it” contracts and looking for value in players coming off injuries or down seasons.
New additions for the 2025 season include Max Kepler, Joe Ross, and Jordan Romano, all of whom were signed to one-year deals totaling $22.5 million. Additionally, the Phillies traded for left-handed starter Jesús Luzardo from the Miami Marlins in December, parting with two top-25 prospects: shortstop Starlyn Caba and outfielder Emaarion Boyd. Luzardo provides much-needed depth to a stellar starting rotation and will be under team control for two more years through arbitration.
“We really like Jesús Luzardo,” said Dave Dombrowski, Phillies president of baseball operations, in December. “We think he’s a quality big league pitcher, and we’ve had interest in him for a few years.”
Luzardo has shown the potential to be a strong starter, posting a 3.48 ERA across 50 starts from 2022 to 2023, with his best season coming in 2023 when he recorded 208 strikeouts in 178 innings. However, his 2024 season was cut short due to a lumbar stress reaction and left elbow tightness, limiting him to just 12 starts and a 5.00 ERA. Despite his injury history, Luzardo, at 27, still represents an ideal candidate for a reclamation project if he can stay healthy.
Max Kepler is another player coming off an injury-plagued season, having missed time due to core surgery. Kepler, however, is no superstar, with his best year being 2019, when he hit 36 home runs and had 90 RBIs. Outside of that, he’s been an average or below-average performer. That said, the Phillies don’t need him to be an All-Star. With a solid lineup already in place, Kepler’s role will be to hit well against right-handed pitchers (.778 OPS vs righties in his career) and improve his on-base percentage. If he can hold his own in left field, he’ll be a valuable asset.
Jordan Romano is the final injury-prone addition. After pitching for about two months last season, Romano underwent right elbow surgery. When healthy, he’s shown elite stuff, earning All-Star honors in 2022 and 2023 with the Blue Jays, where he posted back-to-back sub-2.91 ERA seasons and 36 saves in each. Romano will be tasked with bolstering the Phillies’ bullpen, filling the void left by Jeff Hoffman.
If these players can stay healthy and perform to their potential, the Phillies may find significant value in them. If they do, much of the credit will go to Dave Dombrowski for his sharp, calculated acquisitions.
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