The White Sox are declining their club option on right-hander Liam Hendriks, per Jon Heyman of The New York Post. Instead of retaining him for 2024 with a $15M salary, they will pay him a $15M buyout but spread over the next ten years in annual installments of $1.5M. The righty underwent Tommy John surgery in August and is likely to miss the 2024 season.
Hendriks, 35 in February, signed with the Sox going into 2021. The three-year deal came with a three-year, $54M guarantee. He would make $39M over the first three years, with the $15M option/buyout for 2024. He continued to pitch well over the first two years of the deal, racking up 75 saves over those two seasons with a 2.66 ERA, 39.4% strikeout rate and 4.6% walk rate.
But 2023 provided Hendriks with some significant challenges. He was diagnosed with non-Hodgkin’s lymphoma in the offseason and had to miss the start of the year undergoing treatment. By the end of April, he was cancer-free and began ramping up for a return to the club. He was activated in late May, making five appearances before landing on the injured list due to elbow inflammation, which eventually led him to require Tommy John surgery.
Since he’s likely to miss the upcoming campaign, it’s understandable that the Sox would take the buyout. Though it’s the same amount as the salary of the option, it’s easier to pay it over 10 years than in one, especially with inflation reducing the value of currency over time. Also, there’s no injured list between the World Series and spring training, meaning Hendriks would require a roster spot all winter if the option were picked up. By taking the buyout, the Sox free up a spot for the coming months.
Now Hendriks will head to the open market and be free to sign with any club. Though he still has a lengthy rehab process in front of him, players in this situation often sign two-year deals. The players get some cash to cover the rehab process while the club gets control over one post-rehab season.
Righty Tommy Kahnle signed one such contract when he and the Dodgers agreed to a two-year deal going into 2021. Kahnle was guaranteed $4.75M plus incentives. He didn’t have the same track record as Hendriks and that winter’s market was generally deflated after the lost revenues of 2020, so it seems fair to expect Hendriks to be able to top that guarantee.
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