Yesterday, the Yankees came to an agreement with all but one of their eligible players on arbitration deals. Here are the contracts:
2023 Yankees Arbitration-Eligible Players:
Players listed in order of years of experience
(List courtesy of MLBTradeRumors.com; found here and here)
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Wandy Peralta:
MLB Experience/Arbitration: 5+ Years; Arbitration 3
MLBTR Abritration Projection: $3,100,000
Actual Value: $3,350,000
Difference: -$250,000 (in favor of the players)
Wandy Peralta came to the New York Yankees in early 2021 in exchange for outfielder Mike Tauchman. At the time, it looked to be a horrific deal as Tauchman was a hero for the Yankees in 2019 and Peralta had an over 5.00 ERA in some action during 2021. Now it's clear that the deal was a steal. Wandy Peralta has been a fantastic relief arm for the Yankees and just recently pitched in all 5 games of the ALDS (and then twice more in the ALCS). He earned a nice bump in salary.
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Frankie Montas:
MLB Experience/Arbitration: 5+ Years; Arbitration 3
MLBTR Abritration Projection: $7,700,000
Actual Value: $7,500,000
Difference: +$200,000 (in favor of the Yankees)
Making up for almost the entire difference in salary from Wandy Peralta's projection, we have Frankie Montas. Acquired at the 2022 trade deadline (with Lou Trivino) for J.P. Sears, Ken Waldichuk, and 2 other prospects, Montas was a huge disappointment. He posted a 6.35 ERA over 8 starts with the Yankees and had to miss a month going into the postseason with shoulder inflammation.
If he can pitch as he did with the Oakland Athletics in 2021 (3.37 ERA) or 2022 (3.18 ERA), the Yankees may have the best rotation in baseball with Montas likely being the #5 guy. If not, his contract won't keep him stuck on the Yankees for long.
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Isiah Kiner-Falefa:
MLB Experience/Arbitration: 5 Years; Arbitration 3
MLBTR Abritration Projection: $6,500,000
Actual Value: $6,000,000
Difference: +$500,000 (in favor of the Yankees)
On November 18th, 2022, the New York Yankees announced that they had agreed to terms with Isiah Kiner-Falefa and would be avoiding arbitration. It later came out that the two sides agreed on a deal for a $6 Million contract for the 2023 season.
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Lou Trivino:
MLB Experience/Arbitration: 4+ Years; Arbitration 3
MLBTR Abritration Projection: $4,200,000
Actual Value: $4,100,000
Difference: +$100,000 (in favor of the Yankees)
On November 18th, 2022 the New York Yankees announced that they had agreed to terms with Lou Trivino and would be avoiding arbitration. It later came out that the two sides agreed on a deal for a $4.1 Million contract for the 2023 season.
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Gleyber Torres:
MLB Experience/Arbitration: 4+ Years; Arbitration 3
MLBTR Abritration Projection: $9,800,000
Actual Value: To be determined
Difference: To be determined
Gleyber Torres is the lone New York Yankee player who was arbitration eligible and who was unable to agree to terms on a 2023 contract with the team ahead of the deadline last night. According to reports, Gleyber Torres filed for a contract of $10.2 Million while the New York Yankees filed for a contract of $9.7 Million. A difference of $500,000 is not much when considering the sizes of some contracts (see: Aaron Judge), but with a player like Gleyber Torres- who has another year of arbitration control in 2024- these figures will also affect next years filings.
It seems unlikely that the two sides will not be able to come to an agreement before the hearings with the difference in contracts being relatively small, though both sides could have compelling cases as Torres had a 114 OPS+ in 2022, though he also posted his 2nd worst batting average and worst on-base percentage to this point in his career. He also had an OPS of just (and I kid you not) 0.474 in August last season...while also posting an OPS of .962 in September/October.
If I was a betting man, I'd say that the two sides will agree to a $10 Million contract before hearings begin.
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Clay Holmes:
MLB Experience/Arbitration: 4+ Years; Arbitration 2
MLBTR Abritration Projection: $2,900,000
Actual Value: $3,300,000
Difference: -$400,000 (in favor of the players)
Another steal of a deal from the New York Yankees front office, Clay Holmes was acquired at the 2021 trade deadline for a package of Hoy Jun Park (twice DFA'ed and now in Triple-A with the Atlanta Braves) and Diego Castillo (once DFA'ed and now with the Arizona Diamondbacks). What the Yankees got back was a pitcher who put up a 1.81 ERA to finish up the 2021 season and was arguably the best reliever in the MLB in the 1st half of the 2022 season with his 1.31 ERA after taking over closer duties in May.
With the amount of money the Yankees have put into relief pitching over the past few years in contracts (see: Aroldis Chapman, Zack Britton, etc.) a reliever of Holmes' caliber making a bit north of $3 Million as an arbitration 2 player is still a huge win for the club. Even if it is $400,000 more than what MLBTR projected.
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Jonathan Loaisiga:
MLB Experience/Arbitration: 4+ Years; Arbitration 2
MLBTR Abritration Projection: $2,100,000
Actual Value: $2,260,000
Difference: -$160,000 (in favor of the players)
The 2022 season was a down one for Loaisiga, who impressed the Yankees tremendously in 2021 that many thought he could have been the future closer for the Yankees after Aroldis Chapman's contract ran out. Instead, Loaisiga regressed tremendously- including spending over a month rehabbing from shoulder inflammation- that saw him sport a 5.00+ ERA in early September. The end of the 2022 season was very good for Loaisiga, including pitching 9.1 innings in the playoffs to allowing just 1 run.
The Yankees were wiling to risk it with Loaisiga, after getting him as a released promising prospect with many injury issues by the San Francisco Giants in 2016. It hasn't been an easy road for him, but when healthy he is a dominant force for one of the better year-in and year-out bullpens across the MLB, with the Yankees.
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Domingo German:
MLB Experience/Arbitration: 4+ Years; Arbitration 2
MLBTR Abritration Projection: $2,600,000
Actual Value: $2,600,000
Difference: +/-$0 (in favor of both the team and players)
In 2019, Domingo German led the entire MLB in winning percentage at .818% (18 wins, 4 losses) along with a solid 4.03 ERA (110 ERA+). However, since then his career has had a lot of downs including being suspended by the MLB for violating the league's personal conduct policy (which had him miss the end of the 2019 season and all of 2020), and injuries in 2021 and 2022 that kept him from reaching 100 innings in either season.
He has good potential, a small monetary contract (now), and a few years left of arbitration that he just screams to be part of a bigger trade away from the Yankees. Especially considering how he's on the back-end looking up towards getting a spot in the 2023 rotation and how he is out of minor league options. If he stays with the Yankees he'll become a spot-starter/long relief arm in the bullpen, but his value should be better used as a trading piece.
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Lucas Luetge:
MLB Experience/Arbitration: 4+ Years; Arbitration 2
MLBTR Abritration Projection: $1,700,000
Actual Value: Member of the Atlanta Braves
Difference: N/A
On December 21st, 2022, the New York Yankees announced that they officially signed right-handed relief pitcher, Tommy Kahnle, to a 2-year Major League contract. They also had to announce a move to make room on the 40-man roster for Kahnle. To make room, the Yankees designated Lucas Luetge for assignment.
On December 28th, 2022, the New York Yankees announced that they had traded left-handed relief pitcher, Lucas Luetge, to the Atlanta Braves for two minor leaguers: infielder Caleb Durbin and right-handed pitcher Indigo Diaz.
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Kyle Higashioka:
MLB Experience/Arbitration: 4+ Years; Arbitration 2
MLBTR Abritration Projection: $1,700,000
Actual Value: $1,462,500
Difference: +$237,500 (in favor of the Yankees)
This is a very specific contract that the New York Yankees and Kyle Higashioka have come to an agreement on. I'd argue it's borderline strange as he was the only player to the Yankees came to agreements on a contract with that went into the hundreds of dollars. I guess every penny counts for you and I, but for multi-billion dollar franchises, every Benjamin counts is a similar philosophy?
Regardless, if you are a long-time reader of the site, you know that Kyle Higashioka can do no wrong by me and the fact that he and the Yankees constantly seem to be on good terms with negotiating in arbitration makes me happy. He's the perfect back-up catcher with good defense, occasional pop (check out his 2nd half numbers! A .299/.317/.485/.801 quadruple slash!), and as the "old man" in the clubhouse (he's the longest tenured player in the organization, going back to 2008). Keep him around forever!
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Tim Locastro:
MLB Experience/Arbitration: 3+ Years; Arbitration 1
MLBTR Abritration Projection: $1,200,000
Actual Value: Signed a Minor League contract with the New York Mets
Difference: N/A
Going into November 10th, 2022 the New York Yankees attempted to assign outfielder Tim Locastro outright. However, Tim Locastro was able to decline this offer as a player who was out of minor league option, and instead opted to become a free agent.
On January 9th, 2023, Tim Locastro signed a minor league contract with the New York Mets that includes an invitation to Spring Training.
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Nestor Cortes Jr.:
MLB Experience/Arbitration: 3+ Years; Arbitration 1
MLBTR Abritration Projection: $3,500,000
Actual Value: $3,200,000
Difference: +$300,000 (in favor of the Yankees)
As a first-time arbitration eligible player, Nestor Cortes cracking the $3 Million mark is a good sign for him, and is also a good sign of the Yankees front office negotiating in good faith...even if they beat the MLBTR projection. Nestor Cortes came into 2022 with a lot of hype and a lot of hope that he'd be able to prove his 2021 break-out (2.90 ERA) was legitimate. Needless to say, it was. Nestor finished 8th in the AL Cy Young award, was an All-Star, posted a 2.44 ERA and a 159 ERA+, and became an instant fan favorite with his mustached look and funky deliveries.
Now a certified member of the Yankees pitching rotation in 2023, it is up to Nestor to continue to pitch to the quality that will be expected of him. Last year I had some worries. This year, I'm just excited to see what he can do again.
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Jose Trevino:
MLB Experience/Arbitration: 3+ Years; Arbitration 1
MLBTR Abritration Projection: $2,000,000
Actual Value: $2,360,000
Difference: -$36,000 (in favor of the players)
An All-Star catcher with one of the best bats from the #2 position through the first half of 2022, Jose Trevino overplayed any and all expectations on him last year to the All-Star break...and then things started to get tough. However, Jose Trevino becoming an All-Star catcher with a top-of-the-line bat was never in the equation. The Yankees acquired him to be their better version of Jeff Mathis: a 100th percentile framer with great defense to usher out the "Gary Sanchez" era. He just beat the MLBTR projection in favor of him and the players.
It will be interesting to see if another starting catcher battle begins in 2023 between him (cold 2nd half) and Kyle Higashioka (hot 2nd half). Regardless of how it works out, the Yankees do have likely the best defensive catcher/back-up catcher duo in the sport.
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Michael King:
MLB Experience/Arbitration: 3+ Years; Arbitration 1
MLBTR Abritration Projection: $1,200,000
Actual Value: $1,300,000
Difference: -$100,000 (in favor of the players)
In all likelihood, it would not have been crazy for Michael King to have been a finalist for the American League reliever of the year. Yes, he only pitched until July 22nd (when he fractured his right elbow), but consider the stats he put up:
2.29 ERA, 51.0 Innings Pitched, 66 Strikeouts, 171 ERA+, 1.000 WHIP, 2.23 FIP
Now, just imagine if he played at 80% of that value through the whole season. My goodness that would've been exciting! At this point, though, the most important thing is that Michael King does not try to rush back from his injury. The Yankees have a very deep bullpen already and he'll be given a huge leash to get back to what he proved he can do. However, rushing to reclaim that spot too early could be devastating. Stay healthy this year!
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Good work on rounding up these interesting details. One nitpick: I think there is a typo on Trevino. Either he got $2,360,000, which is an 18% bump over projection (which I don't see as "just barely" better), or he got $2,036,000, meaning a $36,000 bump or a "just barely" 1.8% increase.