In the wake of a transformative offseason marked by high-profile acquisitions and strategic roster moves, the New York Yankees find themselves navigating a delicate arbitration situation with reliever Mark Leiter Jr. While the organization has successfully resolved arbitration cases with four key players, the unresolved negotiations with Leiter present a challenging scenario that could potentially lead to a rare arbitration hearing.

Resolution with core players sets Yankees’ stage

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The Yankees demonstrated their negotiation prowess by securing agreements with several critical pieces of their roster before the arbitration deadline. These settlements represent significant investments in the team’s immediate future:

Devin Williams: The electric closer secured an $8.6 million agreement following his remarkable partial season in 2024. Despite being sidelined for the first half with back stress fractures, Williams showcased his elite potential by surrendering just three earned runs across 21 ⅔ innings. His signature “Airbender” changeup promises to revolutionize the Yankees’ ninth-inning strategy in 2025, his final season before free agency.
Jazz Chisholm Jr.: Securing a $5.85 million deal in his second arbitration year, Chisholm validated the Yankees’ midseason acquisition strategy with an explosive 2024 campaign. His dynamic combination of power (24 home runs) and speed (40 stolen bases), coupled with a robust .760 OPS, establishes him as a cornerstone piece in the Yankees’ evolving infield configuration.
Clarke Schmidt: Following a breakthrough 2024 season that saw him post a stellar 2.85 ERA across 16 starts, Schmidt agreed to a $3.6 million contract. His development trajectory and team control through 2027 position him as a vital component of the Yankees’ pitching strategy.
Scott Effross: Despite limited appearances in 2024 due to injury complications, Effross and the Yankees found common ground at $800,000. While his recent history has been marked by health challenges, his potential impact upon return remains intriguing.

Yankees retain Jazz Chisholm Jr. at a discount

The New York Yankees have locked down infielder Jazz Chisholm Jr. for the 2024 season at a reported $5.85 million, a significant discount compared to MLB Trade Rumors’ projection of nearly $7 million. This deal, representing Chisholm’s second year of arbitration, underscores the Yankees’ ability to manage talent efficiently while maintaining financial flexibility.

Chisholm, who turns 27 in February, was acquired in a midseason trade from the Miami Marlins and quickly became an integral part of the Yankees’ playoff push. Transitioning to third base—a position he had never played professionally—Chisholm adapted seamlessly, showcasing his versatility and athleticism. In 46 games with the Yankees, he slashed an impressive .273/.325/.500, delivering 11 home runs, 23 RBIs, and 18 stolen bases, good for a 130 OPS+. His overall 2023 campaign saw him finish with a .256/.324/.436 slash line, a 110 wRC+, 24 home runs, 40 stolen bases, and an impressive 4.0 WAR.

Chisholm’s performance with the Yankees marked a noticeable improvement from his time with the Marlins, where he posted a 100 wRC+. His numbers surged to a 132 wRC+ in pinstripes, proving his impact as both a hitter and a game-changer on the basepaths. Insider Gary Phillips highlighted the financial aspect of the deal, posting on X (formerly Twitter), “MLB Trade Rumors had Jazz Chisholm Jr. projected at $6.9M in arbitration.”

Chisholm was exactly what the Yankees needed during the latter half of the 2023 season—a dynamic player who could provide both offensive firepower and electrifying energy. His ability to blend speed, power, and adaptability made him an invaluable addition to the roster. With 24 home runs and 40 steals across the season, Chisholm became one of the most exciting dual-threat players in the league.

The $5.85 million deal not only rewards Chisholm for his breakout performance but also gives the Yankees room to maneuver in the offseason. By retaining him below market value, the team can allocate resources to address other needs, such as pitching depth or outfield upgrades.

Devin Williams gets a hike from Yankees

The New York Yankees have solidified their bullpen by agreeing to an $8.6 million contract with newly acquired closer Devin Williams for the upcoming 2024 season. The agreement, which surpasses MLB Trade Rumors’ arbitration projection by $900,000, signals the Yankees’ confidence in Williams as a key piece of their championship aspirations.

Williams, a two-time All-Star and two-time National League Reliever of the Year, was acquired by the Yankees on December 13 in a high-profile trade with the Milwaukee Brewers. In exchange for Williams, the Yankees sent left-hander Nestor Cortes and infielder Caleb Durbin to Milwaukee, showcasing their commitment to strengthening the back end of their bullpen.

Last season, he delivered a sparkling 1.25 ERA with 14 saves over 22 appearances. Despite his stellar performance, the Brewers declined his $10 million club option, paving the way for the Yankees to pounce on the opportunity.

The $8.6 million deal represents a moderate raise from Williams’ $7 million salary in 2023, making him one of the highest-paid relievers in the league. While the Yankees exceeded arbitration expectations, the investment reflects the organization’s recognition of Williams’ elite skill set. His devastating changeup and ability to neutralize hitters make him a perfect fit for high-pressure situations, a necessity for a Yankees team aiming to contend in a fiercely competitive American League.

The Leiter dilemma

Mark Leiter Jr. stands as the final piece in the Yankees’ arbitration puzzle, with negotiations reaching an impasse. The gap between the team’s $2.05 million offer and Leiter’s $2.5 million request, as reported by Jon Heyman of The New York Post, highlights the complex nature of valuing relief pitching in today’s market.

Acquired from the Chicago Cubs during the 2024 season, Leiter, 33, presents an interesting case study in reliever evaluation. His 4.50 ERA across 58 innings might appear pedestrian, but his ability to generate strikeouts and his impressive postseason performance (one run allowed in 5 ⅓ innings) suggest untapped potential. As a second-year arbitration-eligible player with team control extending through 2026, Leiter’s role in the Yankees’ bullpen strategy carries significant long-term implications.

Future considerations

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The resolution of Leiter’s contract situation will impact more than just the Yankees‘ 2025 payroll. His potential role in supporting high-leverage relievers like Williams and Fernando Cruz could prove crucial, particularly given the increasing emphasis on bullpen depth in modern baseball. Leiter’s strikeout ability and postseason experience provide valuable insurance for a pitching staff navigating the demands of a championship pursuit.

As negotiations continue, both sides must weigh the benefits of compromise against the risks of proceeding to arbitration. The narrow gap between proposed figures suggests a resolution might be achievable, though the precise terms will likely depend on how each party values Leiter’s contributions and potential.