The best team in baseball over the last half decade has never spent more than 150M on a single contract, and has let George Springer, Gerrit Cole, Justin Verlander, and Carlos Correa leave via free agency because they valued financial flexibility enough to not risk an albatross contract.
The only mega-contract the Dodgers have given out has been to Mookie Betts, and they'd be an easy 100-win team without him. They've let Trea Turner, Max Scherzer, Zack Greinke, and Corey Seager walk via free agency.
The biggest financial commitment the Cardinals have is 160M to Paul Goldschmidt.
The biggest commitment the Braves have is 168M for Matt Olson, and that might have been a mistake.
The idea that you need to give out 250M mega-deals to top free agents to compete is absurd. The best run teams in the game have mostly been avoiding them and letting desperate orgs with a history of poor decisions make those commitments.