Yankees avoid arbitration with star trade addition (but can't avoid conflict)

You never want to go to an arbitration hearing, if you can avoid it. That is, unless you're a stingy team looking to drive a wedge between executives and players. In that case, perhaps an arbitration hearing is the ideal thing for you! The New York Yankees waited until riiiiiight up until MLB's official 8:00 PM deadline to get their business done on Thursday, but get it done they did (for the most part). Even on a positive day, though, they still set up one boardroom brawl.

The Yankees' list of arbitration-eligible players was lighter on Thursday than when the offseason began; they dealt Nestor Cortes Jr. and Jose Trevino, non-tendered Tim Mayza and Jon Berti, and altered Trent Grisham's salary ahead of time.

Still, Thursday was set to serve as an important line between newly acquired closer Devin Williams and the Yankees. Williams is set to enter free agency after the 2025 season, but mentioned in his introductory press conference that he would be amenable to contract extension talks. An embittered exchange of figures in front of an arbitrator would be a counterintuitive step, in that case.

Luckily, the Yankees and Williams agreed on Thursday. In fact, the $8.6 million the two sides settled on was $900k ahead of MLB Trade Rumors' arbitration projection from earlier in the offseason.

Yankees settle with star Devin Williams to avoid arbitration, can't settle on Mark Leiter Jr. contract

New York also settled with Scott Effross at $800k, Clarke Schmidt at $3.6 million and Jazz Chisholm at $5.85 million; Chisholm is under club control through 2026 as well.

Unfortunately, the Yankees couldn't get all their business done. After a difficult summer and oddly heroic postseason following his acquisition at the trade deadline, demoted high-leverage reliever Mark Leiter Jr. and the front office unsurprisingly didn't see eye to eye.

In other words, Leiter Jr. heard the story of Dellin Betances being told that he was responsible for the Yankees' poor ticket sales, and decided, "Yes, I want to get in on that."

Leiter Jr. is also a free agent after 2026, much like Chisholm. Ideally, the forthcoming hearing isn't so awkward that it sours the next two years' worth of the relationship.

In all, the Yankees were generous to Williams, and tied up most of their loose ends here long before deadline day. But, naturally, even a wholly positive and uncomplicated day couldn't end drama free.