Updated on Wednesday, Feb. 24: The Orioles and Gallardo have restructured their contract, according to Roch Kubatko of MASNSports.com and Jon Heyman of MLB Network.
Under the new deal, Gallardo will make $22 million over two seasons, a $13 million drop in guaranteed cash. He has a chance to earn $11 million more with a team option for a third season. If Gallardo earns all possible money, he will make $33 million.
Updated on Tuesday, Feb. 23: Physical exam issues with Gallardo have caused the deal to hit a snag, according to media reports. There is uncertainty as to whether the deal will be completed.
The Baltimore Orioles have agreed to sign right-handed pitcher Yovani Gallardo, Jon Heyman of MLB Network reported Saturday.
Gallardo and the Orioles have agreed to a three-year, $35 million deal, per Heyman. The deal includes a club option for a fourth season for $13 million, according to SB Nation's Chris Cotillo with a buyout of $2 million.
Some of the money in Gallardo's deal will be deferred.
This means that his $35 million guarantee won't be paid all over the three seasons of the contract. The Orioles will continue to pay Gallardo after he reaches free agency again. This lowers the present-day value of the deal due to inflation rates.
The completion of a deal for Gallardo ends an offseason-long saga.
He was given a qualifying offer by the Texas Rangers at the conclusion of the World Series. Gallardo rejected it, and he was then tied to draft pick compensation. Like many free agents, this deterred teams from wanting to strike a pact.
The Orioles have been in advanced discussions with Gallardo for some time now, as they were reportedly close to signing him on Feb. 10.
Besides the Orioles, Gallardo also received the most interest from the Rockies and Astros, but the latter ducked out of the sweepstakes after signing Doug Fister. Colorado was thought at one time to have been close to a deal, but it obviously never crossed the finish line.
All things aside, Gallardo adds some much-needed depth to Baltimore's 2016 rotation.
He is projected to be pitching alongside Ubaldo Jimenez, Chris Tillman, Miguel Gonzalez, and Kevin Gausman in the rotation come Opening Day.
The 29-year-old Gallardo was 13-11 with a 3.42 ERA in 184 1/3 innings pitched with Texas last season. He posted a 121 to 68 strikeout-to-walk ratio, good for a 4.00 FIP and a 4.31 xFIP. According to FanGraphs, he was worth 2.5 Wins Above Replacement.
Over his career, Gallardo has a 3.66 ERA, 3.74 FIP, and 3.65 xFIP in nine Major League seasons with the Brewers and Rangers.