2016 New York Yankees season

For the third time in four years, the Yankees failed to make the playoffs, finishing in fourth place in the American League East with an 84–78 record.

The 2016 season was notable in that it marked the first time since 1989 that the Yankees were sellers at the trade deadline, dealing away valuable pieces to gain minor league prospects for the future.

[3] Rookie catcher Gary Sánchez made headlines by hitting 20 home runs in his first 53 games, representing the Yankees youth movement known as the "Baby Bombers".

[16] On April 22, Jacoby Ellsbury recorded a straight steal of home, the first such occurrence for the Yankees since Derek Jeter did so against the Baltimore Orioles on May 5, 2001.

The month opened with a loss to the Red Sox and a losing series against the Baltimore Orioles as the Yankees' reached the lowest point of their season at 9–17, eight games below .500.

[19] The vaunted bullpen trio of Dellin Betances, Andrew Miller and Chapman became known in the media as "No-Runs DMC", a nod to the Queens hip-hop group Run–D.M.C.

The Yankees sent three players to the 2016 Major League Baseball All-Star Game: Dellin Betances, Andrew Miller, and Carlos Beltran.

Mark Teixeira recorded his 400th career home run away against the San Diego Padres on July 3, becoming just the fifth switch hitter to do so in Major League history.

[26] The Yankees also traded veteran outfielder Carlos Beltrán to the Texas Rangers for pitchers Dillon Tate, Erik Swanson, and Nick Green.

The day after Rodriguez's release by the organization, Tyler Austin and Aaron Judge were called up and made their major-league debuts, hitting back-to-back homers in their first big league at-bats.

Afterward, however, they lost 11 of their next 15, including a 3–8 road trip where they were swept in a four-game series versus the Boston Red Sox at Fenway Park for the first time since 1990 and losing three of four to the Blue Jays in Toronto.

They closed the season with a six-game homestead where they swept the Red Sox (in the second game, Mark Teixeira hit a walk-off grand slam in the bottom of the ninth, his last home run of his career, to lift the Yankees to a 5–3 win) and losing two of three to the Orioles.