Michael King's contract with Padres might show how screwed Yankees are

The New York Yankees' need for a starting pitcher this offseason is based on one critical element — short-term uncertainty. Uncertainty when Gerrit Cole will make his 2026 debut, and what can be expected out of him once he does. Ditto for Carlos Rodón.

Then there's the uncertainty regarding whether or not Cam Schlittler can take the next step in his development and bring forth a secondary weapon to complement his blazing fastball. There's uncertainty as to whether or not Luis Gil will get his act together and stay healthy at the same time. There's uncertainty as to whether we'll see Clarke Schmidt at all.

With so much up in the air, what the Yankees really need is someone they know can take the ball every fifth day, get outs, and handle the New York limelight. That last part is always the question when it comes to bringing in even the most highly-touted hurlers from the outside.

Fortunately, there was a perfect option in old friend Michael King. Unfortunately, the Yankees screwed the pooch and watched him head back to San Diego on a reasonable three-year, $75 million contract.

It's unclear where the Yankees will turn to bolster their rotation after Michael King re-signs with the Padres

If we operate under the assumption that the Yankees really didn't want to spend big on a starting pitcher this winter, then it's not clear where they go from here. The club still owes Rodón $84 million over the next three years. They'll pay Cole $108 million over the same time period. And, of course, Max Fried is just one year into his eight-year, $218 million deal.

That's a lot of money tied up in the starting rotation for the next several years. However, the way the Padres structured King's contract with opt-outs after 2026 and 2027 turns it into a choice between a one-year, $22 million deal, a two-year, $45 million deal, or a three-year, $75 million deal. Had King not gotten hurt last season, he'd probably be looking at a much bigger payday, so one can imagine that he'll opt out if he has a healthy and productive 2026.

That's completely reasonable, and surprisingly the Yankees weren't able to match. The only other free-agent starting pitcher they've been heavily connected to is Japanese import Tatsuya Imai. Imai, however, comes with a ton of questions about how he'll translate to the MLB game. On top of that, he's thought to be looking for a long-term deal in the seven-year range.

The smart play would've been going with the known quantity in King, while retaining future flexibility, so if Imai ends up being the addition, the pressure on him to justify his contract will be immense right out of the gate.

The other option is the trade market. The Yankees are one of several teams said to be in on Milwaukee Brewers ace Freddy Peralta, but there are some issues there, too. First, the Yankees haven't always had the greatest track record when bringing in small-market pitchers. Second, Peralta is a free agent after next season. Given the strength of his market, it will take a compelling package to land him, and if the Yankees aren't interested in signing him long-term, the price tag will prove to be exorbitant for a rental.

And that's what we know for now. The Yankees had a perfect option sitting in front of them, ripe for the taking, on a short-term deal with flexibility. Instead, they lost him to San Diego and will be forced to choose between options that all have significant downsides.