Orioles, Darren O’Day agree to two-year, $5.8 million contract

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UPDATE: CBS Sports’ Jon Heyman reports that O’Day is guaranteed a total of $5.8 million. He’ll make $2.2 million this season and $3.2 million in 2014 while the option for 2015 is worth $4.25 million and carries a $400,000 buyout.

4:15 PM: O’Day’s agency, Beverly Hills Sports Council, just announced on their Twitter account that the deal is done. He’ll get a two-year deal with a club option for 2015. No word yet on the terms.

9:56 AM: After reaching agreements with Jason Hammel and Jim Johnson to avoid arbitration, the Orioles are have reliever Darren O’Day next on their agenda.

According to MASN Sports’ Roch Kubatko, the Orioles are close to a two-year contract with O’Day which includes an option for 2015. The deal is considered “all but done” and will buy out his final two years of arbitration and potentially his first year of free agency.

O’Day made $1.35 million last season and proved to be a real weapon out of Baltimore’s bullpen. The 30-year-old submariner had a 2.28 ERA and 69/14 K/BB ratio over 67 innings during the regular season and allowed just one hit and one walk over seven shutout innings during the team’s postseason run.

Rays acquire RHP Drew Smith from Tigers

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The Rays acquired minor league reliever Drew Smith from the Tigers on Friday, per a team announcement. The move will close the loop on the trade the two teams began in January for backup outfielder Mikie Mahtook.

Smith, 23, pitched his first full season in Single-A West Michigan in 2016, turning in a 2.96 ERA, 4.3 BB/9 and 11.5 SO/9 in 48 2/3 innings. The right-hander is still several levels away from making any impact on the Rays’ major league roster, but appears to be progressing steadily in two seasons of pro ball and has delivered two runs, four walks and 12 strikeouts in his first 11 2/3 innings at High-A Lakeland this season. Marc Topkin of the Tampa Bay Times reports that he’ll be reassigned to the Rays’ High-A Charlotte this week.

Yankees activate Didi Gregorius from the disabled list

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The Yankees have activated shortstop Didi Gregorius from the 10-day disabled list, the club announced on Friday. Infielder Pete Kozma was designated for assignment to clear roster space.

Gregorius, 27, suffered a strained right shoulder while playing in the World Baseball Classic last month. He’s in Friday’s starting lineup, batting sixth against the Orioles.

Last season, Gregorius hit .276/.304/.447 with 20 home runs and 70 RBI in 597 plate appearances.