SARASOTA, Fla. — The Baltimore Orioles and right-hander Yovani Gallardo have finalized a $22 million, two-year contract with a 2018 team option, a deal revised from the original $35 million, three-year agreement reached Saturday.
Gallardo gets $9 million this year, of which $2.25 million is deferred with no interest, and $11 million in 2017, of which $1 million is deferred. The Orioles’ option is at $13 million, of which $3 million would be deferred, and he would get a $2 million buyout if it is declined.
Gallardo receives the guaranteed deferred money in equal payments of $1,625,000 on July 1 in 2019 and 2020, and if the option is exercised he would get $3 million on July 1, 2021. If the option is declined, the buyout is due on July 1, 2018.
Because Gallardo turned down a $15.8 million qualifying offer from Texas in November, the Orioles forfeit their first-round draft pick, which would have been the 14th overall. Texas gains an extra selection after the first round.
Gallardo, who is 102-75 with a 3.42 ERA in his career, has thrown at least 180 innings and started at least 30 times for the last seven seasons. He was 13-11 with a 3.42 ERA for the Rangers last year.
To make room for Gallardo on the 40-man roster, the Orioles designated first baseman/outfielder Efren Navarro for assignment.