Every year, teams and players negotiate contracts for arbitration-eligible players. If they can’t agree, they go to arbitration—a process that neither side loves.
This year, the Yankees got most of their deals done, reaching agreements with four players.
However, one name stands out as the exception: Mark Leiter Jr.
Here’s a closer look at what’s happened and what’s still up in the air.
- The Yankees avoided arbitration with Devin Williams, Jazz Chisholm Jr., Clarke Schmidt, and Scott Effross by agreeing on contracts.
- Mark Leiter Jr. didn’t settle, leaving a $450,000 salary gap to resolve before a possible arbitration hearing.
- Arbitration hearings can be messy, and the Yankees haven’t gone through one since 2017.
Mark Leiter Jr. and the $450,000 Salary Gap
Mark Leiter Jr. is the only arbitration-eligible Yankee who didn’t settle before the deadline.
He filed for a $2.5 million salary, but the team countered with $2.05 million, leaving a $450,000 difference.
Both sides now have a few weeks to negotiate before heading to arbitration.
If they can’t agree, a panel will choose one of the two numbers—a process that can be tense and uncomfortable for everyone involved.
It’s safe to say Leiter’s 2024 season was inconsistent.
After being traded midseason from the Cubs, he pitched 58 innings with a 4.50 ERA.
He struggled with home runs but showed flashes of brilliance, striking out plenty of batters and stepping up in the postseason, where he allowed just one run in 5 1/3 innings.
At 33 years old, Leiter is in his second year of arbitration and earned $1.5 million last year.
He’s signed with the Yankees until 2026, so this deal is important for his future with the team.
Devin Williams Secures $8.6 Million as Yankees’ New Closer
Devin Williams, acquired from the Brewers in December, signed a deal worth $8.6 million.
The two-time All-Star and former NL Reliever of the Year had an incredible 2024 season, posting a 1.25 ERA with 14 saves in 22 games.
Though he missed time with back issues, Williams returned to his dominant form late in the season.
With this contract, Williams is set to take over the closer role for the Yankees.
Manager Aaron Boone confirmed the change, which lets Luke Weaver move into a more flexible bullpen spot.
Williams becomes a free agent after 2025, so the Yankees are counting on him to perform well over the next two years.
Jazz Chisholm Jr. Earns $5.85 Million After a Strong 2024
Jazz Chisholm Jr., one of the Yankees’ most exciting players, agreed to a $5.85 million deal in his second arbitration year, a big raise from the $2.625 million he earned in 2024.
After being traded from the Marlins in July, he quickly adjusted to playing third base, and he had never tried that position before.
Despite the challenge, he finished the season with a .760 OPS, 24 home runs, and 40 steals.
His energy and flexibility make him an important part of the Yankees’ lineup for 2025.
Clarke Schmidt Lands $3.6 Million After Career-Best Season
Clarke Schmidt had a breakout year in 2024, which earned him a $3.6 million contract.
And that’s a $1.57 million raise from the $2.025 million he made last season.
Schmidt posted a 2.85 ERA in 16 starts, which cemented his place in the Yankees’ rotation.
He also made three postseason starts, including a Game 3 appearance in the World Series against the Dodgers.
At 28 years old, Schmidt is under team control through 2027, and the Yankees are counting on him to be a back-end rotation guy in 2025, slotting in behind Gerrit Cole, Max Fried, and Carlos Rodon.
Scott Effross Signs for $800,000 After Injury-Plagued Season
Scott Effross agreed to an $800,000 deal despite a tough 2024 season, and it’s a small raise from his $750,000 salary last year.
After undergoing Tommy John surgery and back surgery, Effross managed just three big-league appearances, allowing two runs in 3 1/3 innings.
At 31 years old, Effross will look to bounce back in 2025 and reestablish himself as a reliable bullpen arm.
What’s Arbitration, Anyway?
Here’s a quick rundown if you’re new to this whole arbitration thing.
Arbitration lets players with at least three years of MLB service (but less than six) negotiate salaries with their teams.
If they can’t agree, both sides submit a number, and a neutral panel picks one.
For the Yankees, avoiding arbitration hearings is a priority.
They hadn’t gone to a hearing since 2017 when they beat Dellin Betances—a case that turned messy when team president Randy Levine publicly criticized Betances’ camp.
Recent history shows the Yankees can push negotiations to the wire.
Last year, they avoided a hearing with Aaron Judge hours before his case was set to begin.
Why Does This Matter?
Arbitration isn’t just about money—you could say it’s more about keeping good relationships.
Players want to feel valued, and teams must manage their budgets without upsetting anyone.
And Mark Leiter Jr.’s case is a reminder that even small disagreements can cause problems.
If they have to go to arbitration, it could leave hard feelings, and the Yankees have worked hard to avoid that for years.
With the 2025 season coming up, the Yankees have a solid team, but every contract matters when you’re aiming for a championship.
Deals like these help build a strong season, whether it’s a young player like Clarke Schmidt or an experienced closer like Devin Williams.
As for Leiter, we’ll have to wait and see if they can agree or if things get messy in arbitration.
