Indians and Justin Masterson will discuss a multi-year contract extension before arbitration

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Indians starter Justin Masterson will file for salary arbitration on Tuesday in his third and final year of arbitration eligibility. Paul Hoynes of The Plain-Dealer reports that the Indians and Masterson will discuss a multi-year extension in the days leading up to the official filing of arbitration figures.

Masterson, who turns 29 years old in March, has been inconsistent throughout his career, but has shown plenty of promise. He finished 2013 with a 3.45 ERA in 193 innings and notched three shut-outs, leading the American League. Matt Swartz’s arbitration model at MLB Trade Rumors projected Masterson to get between $9 and $10 million, and Tim Dierkes also of MLBTR suggests that an extension would cost the Indians between $13 and $17 million per season, likely over five years.

Since 2010, Masterson’s 57.1 percent ground ball rate ranks sixth in the Majors among qualified starters, trailing Derek Lowe, Tim Hudson, Jake Westbrook, Trevor Cahill, and Aaron Cook. As such, he benefits from having a solid infield defense. The Indians had one of the worst defenses in baseball in 2013, according to FanGraphs, and are returning the same cast of characters for the most part in 2014.

Dodgers designate Sergio Romo for assignment

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The Dodgers announced on Thursday that the club activated pitcher Grant Dayton from the 10-day disabled list and designated pitcher Sergio Romo for assignment.

Dayton, 29, went on the disabled list earlier this month with neck stiffness. He’ll resume with a 3.63 ERA and a 20/12 K/BB ratio in 22 1/3 innings.

Romo, 34, signed a one-year, $3 million deal with the Dodgers in February. It didn’t really work out, as the right-hander posted a 6.12 ERA with a 31/12 K/BB ratio in 25 innings. His peripherals are still decent, so it wouldn’t be surprising if a team in need of a bullpen arm makes a deal with the Dodgers within the week.

Nate Karns underwent season-ending surgery for thoracic outlet syndrome

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MLB.com’s Jeffrey Flanagan reports that Royals pitcher Nate Karns underwent surgery for thoracic outlet syndrome on Wednesday. He’s expected to be ready for spring training next year. Karns went on the disabled list in May with an elbow injury and didn’t make much progress.

The Royals acquired Karns from the Mariners in January in exchange for outfielder Jarrod Dyson. Over eight starts and one relief appearance, the 29-year-old right-hander compiled a 4.17 ERA and a 51/13 K/BB ratio in 45 1/3 innings.

Karns will enter his first of three years of arbitration eligibility after the season, so he’ll be under the Royals’ control through 2020.