Alex Rodriguez

Yankees could receive insurance funds if Alex Rodriguez can’t play

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So, the best thing A-Rod can do for the Yankees now is not play?

CBSSports.com’s Jon Heyman reports that the Yankees have insurance on Alex Rodriguez’s contract that would cover 75-80 percent of his salary if he proves unable to play due to injuries.

Rodriguez is currently expected to miss 4-6 months following hip surgery in January, potentially leaving him sidelined until June or July.

The way insurance on baseball contracts typically works is that it doesn’t kick in unless a player misses the entire season. Whether that’s the case here is unknown, but it’s a pretty good case there won’t be any immediate windfall for the team.

Rodriguez is signed for five more seasons at a total of $114 million. If his body continues to break down, then perhaps the Yankees will recover big portions of his salary in future years. It might also have luxury-tax ramifications. Technically, A-Rod’s salary would still count against the tax even if he were injured and insurance was covering it, but if the Yankees dropped him from the 40-man roster, it no longer would.

That’s what happened with disappointing import Kei Igawa before his contract expired. Since he was no longer on the 40-man, his salary didn’t figure in for tax purposes. However, the Yankees also couldn’t pay someone to take him — which would have had luxury tax ramifications — and they essentially held him hostage in the minors until his contract was up.

Frankie Montas out 2-4 months after rib resection surgery

Chicago White Sox pitcher Frankie Montas throws against the Detroit Tigers in the first inning of a baseball game in Detroit, Wednesday, Sept. 23, 2015. (AP Photo/Paul Sancya)
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Per Eric Stephen of SB Nation’s True Blue LA, the Dodgers announced that pitching prospect Frankie Montas will be out two to four months after undergoing rib resection surgery to remove his right first rib.

The Dodgers acquired Montas from the White Sox in a three-team trade in December 2015 that also involved the Reds. The 22-year-old made his big league debut with the Pale Hose last season, allowing eight runs on 14 hits and nine walks with 20 strikeouts in 15 innings across two starts. Montas had spent the majority of his season at Double-A Birmingham, where he posted a 2.97 ERA with 108 strikeouts and 48 walks in 112 innings.

MLB.com rated Montas as the 95th-best prospect in baseball, slipping a few spots from last year’s pre-season ranking of 91.

Athletics acquire Khris Davis in trade with Brewers

Milwaukee Brewers' Khris Davis swings on a home run during the eighth inning of a baseball game against the San Diego Padres on Tuesday, July 23, 2013, in Milwaukee. (AP Photo/Morry Gash)
AP Photo/Morry Gash
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The Brewers’ rebuild continues, as the club announced on Twitter the trade of outfielder Khris Davis to the Athletics in exchange for catcher Jacob Nottingham and pitcher Bubba Derby. MLB.com’s Jane Lee reports that the A’s have designated pitcher Sean Nolin for assignment to create room on the 40-man roster for Davis.

Davis, 28, was the Brewers’ most valuable remaining trade chip. He blasted 27 home runs while hitting .247/.323/.505 in 440 plate appearances this past season in Milwaukee. Adding to his value, Davis won’t become eligible for arbitration until after the 2016 season and can’t become a free agent until after the 2019 season. In Oakland, Davis will give the Athletics more reliability as Coco Crisp was injured for most of last season and is now 36 years old. Though he doesn’t have much of a career platoon split, Davis split time in left field with the left-handed-hitting Gerardo Parra last season. It’s unclear if the A’s will utilize him in a platoon as well.

With Davis out of the picture, Domingo Santana is a leading candidate to start in left field for the Brewers, GM David Stearns said, per Tom Haudricourt of the Milwaukee Journal Sentinel.

Nottingham, 20, started the 2015 season in the Astros’ system but went to the Athletics in the Scott Kazmir deal. He hit an aggregate .316/.372/.505 at Single-A, showing plenty of promise early in his professional career. With catcher Jonathan Lucroy on his way out of Milwaukee, the Brewers are hoping Nottingham can be their next permanent backstop.

Derby, 21, made his professional debut last season after the Athletics drafted him in the sixth round. Across 37 1/3 innings, he yielded seven runs (five earned) on 24 hits and 10 walks with 47 strikeouts. He’s obviously a few years away from the majors, but the Brewers are looking for high upside.

Yankees, Aroldis Chapman avoid arbitration at $11.325 million

Aroldis Chapman
AP Photo/Charles Rex Arbogast
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Ken Rosenthal of FOX Sports reports that the Yankees and closer Aroldis Chapman have avoided arbitration, settling on an $11.325 million salary for the 2016 season. It is the lefty’s third and final year of arbitration eligibility.

Chapman had filed for $13 million while the Yankees countered at $9 million, so he gets slightly more than the midpoint between the two submitted figures.

With the Reds this past season, Chapman posted a 1.63 ERA with 33 saves and a 116/33 K/BB ratio over 66 1/3 innings. The Reds have opted to rebuild, so they traded him to the Yankees this offseason in exchange for four minor leaguers. Chapman, who turns 28 at the end of February, will make for a fearsome 1-2-3 punch in the back of the Yankees’ bullpen along with Andrew Miller and Dellin Betances.

Indians sign reliever Tommy Hunter to $2 million deal

Baltimore Orioles relief pitcher Tommy Hunter throws to the Miami Marlins during the seventh inning of a baseball game in Miami, Friday, May 22, 2015. (AP Photo/J Pat Carter)
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Paul Hoynes of the Cleveland Plain Dealer reports that right-hander Tommy Hunter has agreed to a one-year, $2 million contract with the Indians. It’s a major-league deal, so Hunter gets a spot on the 40-man roster and will be in the Opening Day bullpen if he’s fully recovered from core muscle surgery.

Hunter split last season between the Orioles and Cubs, totaling 60 innings with a 4.18 ERA and 47/14 K/BB ratio. He had a sub-3.00 ERA in both 2013 and 2014, and has generally been a setup-caliber reliever since shifting to the bullpen full time.

He has good control and a mid-90s fastball, but Hunter has never missed many bats despite the big-time velocity and often struggles to keep the ball in the ballpark. He’ll likely fill a middle relief role in Cleveland initially.