The New York Yankees have a simple choice to make about how to restructure their bullpen. This choice is based on hard lessons learned about performance and contract value. The organization is likely to turn down Jonathan Loáisiga’s $5 million club option for 2026 and let him go to free agency, despite the talent.

Insider Brian McKeon explained the Yankees’ reasoning on the Locked On Yankees YouTube Channel. “For what they gave him, for what he gave them actually during the season, there’s no way they’re going to pay him $5 million to come back.” The Yankees punish their players accountable for poor performance by making it clear that contract value must match on-field results.

Loáisiga signed a one-year, $5 million deal last offseason. He had a 4.25 ERA in 29⅔ innings before a right flexor strain ended his season in August.

When competing rosters need depth and reliability, paying extra money for limited availability goes against organizational discipline. So, McKeon suggested a potential compromise here: negotiations at significantly reduced terms.

“If Jonathan Loáisiga is willing to come back for $900,000 for the veteran minimum, I think they probably do it, just to see what’s left in his arm. Because they’ve always loved this stuff, but he just can’t stay on the field.” His injury history supports this caution.

Loáisiga underwent Tommy John surgery in 2016, then suffered a UCL tear at the 2024 season’s outset, requiring another procedure. And these setbacks have fractured what could have been a cornerstone of relieving career.

At the same time, Tim Hill’s situation shows how different the New York Yankees are for reliability.

The 35-year-old left-handed reliever was a good value during the 2025 season, pitching in 70 games with a 3.09 ERA, 1.10 WHIP, and 37 strikeouts over 67 innings. It looks like he will definitely take the $3 million option for next year. McKeon reinforced this assessment.

“Tim Hill’s option is for $3 million for next year. There’s no way they’re not going to pick that up. $3 million for Tim Hill would make sense to pick that up, especially with what they did last offseason.” Hill’s reliability and availability have earned him continued trust, while Loáisiga’s diminishing returns and poor health have made him less trustworthy.

With that, the drama goes on…

Cody Bellinger opts out as Yankees navigate free agency landscape

Cody Bellinger’s decision to opt out is similar to the Yankees’ willingness to make big roster changes after the World Series. The outfielder officially opted out on Monday, giving up a guaranteed $25 million for 2026 in exchange for a $5 million buyout. Bellinger showed confidence that he could get a better deal elsewhere in free agency by turning down the full contract value.

Then again, Bellinger has signaled openness to a potential return.

According to MLB.com’s Bryan Hoch, the 30-year-old outfielder remains interested in New York. “Cody Bellinger said he would ‘absolutely’ be open to another season with the Yankees, saying that he had ‘an unbelievable time putting on this uniform,'” Hoch reported. “If it happens, it’ll be under the terms of a new deal.”

Bellinger’s choice to opt out shows that he believes in his market value. He hit .272/.334/.480 with 29 home runs, 98 RBIs, and 89 runs in 152 games in 2025, his first year in New York after coming over from the Cubs. His 5-WAR season was his best since winning the NL MVP award with the Dodgers in 2019, showing that he is still in his prime years.

The Yankees now have to deal with conflicting priorities: keeping proven contributors like Hill while letting go of costly players and possibly bringing them back on different terms. This balancing act shows that the team doesn’t have enough resources and is changing its strategy after making big investments in the offseason.