Luis Severino Signs Team Friendly Extension With Yankees

Locking up young players to team friendly contracts is the smartest thing you can do in baseball. Locking up Luis Severino long term tops that list. Severino is closing in on a 4-year, $40 million extension with the New York Yankees. The deal also includes one team option. The new contract will buy out all 4 remaining arbitration years while the team option can buy out one free agent year. It’s a big win for the Yankees:

Jeff Passan of ESPN was the first to report the news:

Breakdown of Luis Severino's deal, per source:

2019: $4M+$2M bonus
2020: $10M
2021: $10.25M
2022: $11M
2023 (club option): $15M with $2.75M buyout

Interesting part of that: higher salaries in '20 and '21, lower than usual in '22. Why? Protection against a work stoppage.

— Jeff Passan (@JeffPassan) February 15, 2019

So the deal can max out at $52.5 million. The Yankees hope they get more of the first half 2018 performance out of Severino compared to the second half. Luis Severino was dominant in the first half of the 2018 season. 11-2 with a 2.74 ERA is exactly what an ace should look like. Then things took a turn for the worse during the second half of the season. 9-6 with a 3.99 ERA resembles the performance of a fourth or fifth starter. Severino is changing his diet in hopes of fixing those late-season struggles.

This was a great deal financially for New York. They certainly reduced Sevy’s arbitration number. Especially if he continues to perform. It also buys out one free agent year. Having the Dominican born right-hander on a one-year deal worth $15 million beats having to sign him on the open market. New York now retains Severino through age 29.

Severino, 24, has a ton of potential and is one of the hardest throwers in the sport. Hitting 100 is no issue for the Yankees ace who figures to get the start on opening day.