The Oakland Athletics and reliever Eric O'Flaherty to a two-year, $7 million contract, according to Ken Rosenthal of FOX Sports. O'Flaherty is currently recovering from Tommy John surgery and should be ready by July, notes Rosenthal. 

O'Flaherty should continue to bolster an Athletics' bullpen that already boasts the likings of Luke Gregerson, Jim Johnson, and others. In 2013, O'Flaherty posted a 3-0 record with a 2.50 ERA and a 0.944 WHIP in 19 games with the Atlanta Braves. Since 2010, O'Flaherty has been brilliant, pitching to a 11-6 with a 1.68 ERA and a 1.13 WHIP (234 ERA+) in 217 games. 

The Athletics could be getting one of the best relievers in the Major Leagues for just $3.5 million per year. Even though he comes back in July, that is a nice deal for the A's. 

The Tanaka sweepstakes are over. Masahiro Tanaka and the New York Yankees have agreed to a seven-year, $155 million deal, reports Ken Rosenthal of FOX Sports. The deal includes an opt-out after year four, Rosenthal notes. Tanaka's contract is the fifth-largest for a pitcher ever, following the contracts of Kershaw, Verlander, Hernandez (Felix), and Sabathia.

One of the biggest names on the free agent market, Tanaka originally received interest from "more than a dozen clubs." Now with the new posting rules, any team could have offered Tanaka a contract, changing it from the "exclusive rights" as teams have had with players in the past. Just this past week, Tanaka named his finalists for the signing, saying that the Cubs, White Sox, Dodgers, Yankees, and Diamondbacks all had the best chances to sign him. 

This move makes a ton of sense for the New York Yankees. Although they have to pay $175 million (includes $20 million posting fee), it should definitely be worth it. Their rotation needs work; C.C. Sabathia has regressed, Hiroki Kuroda is another year older, and Pettitte and Hughes are gone. Even with all those pieces, the Yankees rotation still posted the 13th-worst ERA in the Major Leagues in 2013. Tanaka should be an anchor there. 

One thing the Yankees wanted to do this offseason was attempt to stay under the $189 million luxury tax threshold. Before the contract, Baseball Reference noted that the current Yankee payroll stood at $170.5 million. Signing Tanaka at $22 million per year shoots them up to $192.5 million, a good $3 million above the luxury tax. 

Tanaka is worth it. In his 2013 season with the Rakuten Golden Eagles, Tanaka did not lose. The ace went 24-0 with a 1.27 ERA and a 0.943 WHIP in 212 innings pitched. These numbers include a SO/9 of 7.8, a BB/9 of 1.4, and a HR/9 of 0.3. Tanaka does not try and strike hitters out; instead he tries just to get them out. That should be a huge key to his Major League success in the big apple. 

The signing of Masahiro Tanaka should open the flood gates for other Major League signings. Since his posting, rumors for the top talent out there, such as Matt Garza, Nelson Cruz, Ubaldo Jimenez, and Ervin Santana have been completely silent. The focus will now turn to them, as we have an exciting Hot Stove season ahead of us. 

Here is a quick roundup of some of the latest rumors:

• The Washington Nationals are exploring the possibility of signing reliever Grant Balfour and are in the mix to signing him, reports Ken Rosenthal of FOX Sports. Although they already have Rafael Soriano, Tyler Clippard, and Drew Storen in the back end of the bullpen, they are in the running to sign Balfour. Rosenthal noted that the Nationals may want to trade Drew Storen in order to free up some salary. 
• The Philadelphia Phillies are reportedly interested in signing 35-year-old free agent outfielder Vernon Wells to a contract. Wells, who was recently released by the Yankees, has a career 104 OPS+ in his 15 seasons in the league. Over the past three years, however, Wells has posted a well below average 81 OPS+. A signing of Wells could be good for the Phillies, as he is a nice low-risk, high-reward type of signing. 
• The Cincinnati Reds and 31-year-old outfielder Grady Sizemore are in "advanced talks," reports Ken Rosenthal of FOX Sports. Rosenthal notes that other teams are still involved in the talks with Sizemore. Consider the Reds to be the favorite to sign Sizemore, but until he agrees to a deal, nothing is truly finalized. Sizemore has a career 120 OPS+ in eight seasons with the Cleveland Indians. 

The Chicago Cubs have jolted to the top of the Masahiro Tanaka race, and now are the "lead team" for the Japanese ace, a league source told Bruce Levine of WSCR-AM (a Chicago-based radio station). Levine also said earlier that the Cubs have made a real offer to Tanaka. 

On Thursday, Ken Rosenthal had reported that the Cubs were "pushing hard" for the hurler. The same day, Jayson Stark tweeted this:

Well, you better believe it. The Cubs are loaded with prospects, such as Javier Baez, Kris Bryant, and Jorge Soler (just to name a few), but are short on the pitching side. Acquiring a young Tanaka would be huge for the Cubs. It looks like they might just be able to pull it off.

Tanaka has until January 24 to make a decision on his next team.

Quite a few notable players agreed to deals that avoided arbitration today...

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• Jordan Zimmermann and the Nationals agreed to a two-year, $24 million contract extension. 
• Ian Desmond also avoided arbitration via the two-year extension, making him the second National to ink today. His deal was worth $17.5 million.
• Sam LeCure of the Reds also inked a two-year extension today. His deal was for $3.05 million. 

Notable players avoiding arbitration:

• The Tigers and pitcher Max Scherzer have agreed to a one-year, $15.525 million deal.
• Giancarlo Stanton and the Marlins have agreed to a one-year, $6.5 million deal. 
• Chris Davis and the Orioles have agreed to a one-year, $10.35 million deal. 
• The Yankees and Brett Gardner have agreed to a one-year, $5.6 million deal. 
• The Athletics and Luke Gregerson have agreed to a one-year, $5.06 million deal. 
• Padres, Chase Headley agree to a one-year, $10.525 million deal.