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Yankees Agree to New Contract With Starting Pitcher
Jun 21, 2025; Bronx, New York, USA; New York Yankees pitcher Clarke Schmidt (36) reacts after leaving the game during the seventh inning against the Baltimore Orioles at Yankee Stadium. Mandatory Credit: John Jones-Imagn Images John Jones-Imagn Images

The New York Yankees are bringing back starting pitcher Clarke Schmidt for another year, avoiding salary arbitration and hopefully adding strength to their starting rotation — once he's back from injury.

According to Fansided insider Robert Murray, the Yankees and Schmidt have agreed to a one-year, $4.5 million contract.

Schmidt, who has played his entire six-season MLB career with the Yankees, threw a 3.32 ERA and 1.09 WHIP in 2025. Unfortunately, he was only able to start 14 games before experiencing a torn ulnar collateral ligament (UCL) in July against the Toronto Blue Jays. To repair the ligament, Schmidt underwent Tommy John surgery, sidelining him for the remainder of 2025.

Schmidt was not the only injured starting pitcher on the Yankees' roster this season. The Pinstripes' 2024 postseason hero Gerrit Cole similarly underwent Tommy John surgery in March and is expected to be back during the 2026 season, though not for Opening Day. The timeline for Schmidt's return is more unclear.

Clarke Schmidt's Return Timeline

According to announcements made by Yankees general manager Brian Cashman and manager Aaron Boone at their 2025 post-season press conference, Schmidt is not expected to begin throwing again until December. While that sounds like bad news, especially given the typical timeline for return from Tommy John, an invasive surgery, he could still return in 2026. However, that return will likely be late in the season.

One of the Yankees' biggest offseason questions lies in the starting rotation on Opening Day. While Cole will certainly make his way back to the mound next season, Carlos Rodón also had to undergo surgery (though less invasive) and will not be available at the beginning of 2026. The Yankees are expected to pursue an additional starter on the free agency and trade markets ahead of Opening Day.

Yankees Work to Avoid Salary Arbitration

The Yankees had a whopping 14 arbitration-eligible players, though several are considered to be "no brainers" for a contract offer, including infidler Jazz Chisholm Jr. and relief pitcher David Bednar. Schmidt joins utility player Oswaldo Cabrera (who also missed a majority of the 2025 season after breaking his left ankle against the Seattle Mariners in May) as two players considered to be "up in the air" who signed contracts today.

Salary arbitration occurs when a player who has played more than three years, but less than seven, in the major leagues and their team cannot reach an agreement on the value of their contract. During arbitration, both the player and the team submit a suggested value and a team of independent evaluators reach a decision.

Hopefully, with salary discussions out of the way, Schmidt can focus on recovery and make his return during the 2026 season.

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This article first appeared on New York Yankees on SI and was syndicated with permission.

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