According to Joel Sherman of the NY Post, the Yankees and Luis Severino have agreed to a four-year, $40 million ($2.75 million buyout included) contract extension with an option for a fifth year that would take the deal to $52.25 million. The extension, pending a physical, buys out Severino’s four remaining arbitration years, and possibly his first year of free agency eligibility.
Hear #Yankees and Luis Severino avoided an arbitration hearing by reaching agreement on a multi-year deal pending a physical
This should be considered as a great deal for both the team and player, as Severino now has security and a nice payday and the Yankees have their ace under team control through his age-29 season.
Sherman noted that the Yankees have largely avoided extensions with arbitration eligible players in recent years because the Average Annual Value (AAV) is factored into the luxury tax payroll.
However, since the Yankees have made a concerted effort to get underneath the luxury tax threshold, they felt the time was right to extend an important piece of their core. Severino will now cost $10 million annually for tax purposes, according to Sherman, which raises the payroll from $215 million to $220 million for 2019.
Severino, who will turn 25 on Feb. 20, went 19-8 with 3.39 ERA and 220 strikeouts in 191.1 innings in 2018. He faded in the second half, and said recently that he changed his diet and workout regiment over the offseason to ensure he doesn’t get tired over the course of the season.