Left-hander Jose Alvarado has agreed to a three-year contract extension with the Philadelphia Phillies, team president of baseball operations David Dombrowski announced on Friday. Set to make $9 million per year through the 2025 season, Alvarado’s contract includes an option for 2026 that would see him make a further $9 million that year. Alternatively, he would be eligible for a $500,000 buyout.
In addition, Alvarado would be eligible for several performance-based bonuses. By winning World Series MVP or the Mariano Rivera/Trevor Hoffman reliever of the year award, Alvarado would receive a $100,000 bonus. By finishing second or third for the reliever honor, he would receive $50,000. He would also receive $50,000 compensation for winning an MVP or Gold Glove or making the All-Star team.
Days before reaching an agreement, Alvarado and the Phillies narrowly avoided an arbitration hearing by agreeing to a $3.45 million salary for 2023. Had a deal not been reached, Alvarado would have been eligible for free agency at the end of this season.
Last season, Alvarado went 4-2 with a 3.18 ERA and two saves in 59 relief appearances. He also had a 5.56 ERA in 12 postseason games as the Phillies were crowned National League champions.