The Yankees are e xercising their $3 million club option on left-hander Tim Hill and declining the $5 million club option on right-hander Jonathan Loaisiga, per ESPN’s Jorge Castillo. Loaisiga will hit free agency.
Why Hill stays
The 35-year-old gave New York steady lefty leverage in 2025. He had a 3.09 ERA, 1.10 WHIP and 37 strikeouts out of the bullpen. He’d re-signed last winter on a deal that included this 2026 option; at $3 million, that’s clean value for a ground-ball lefty who can get you a strikeout when needed.
Why Loaisiga walks
Loaisiga has always teased with his talent, but disappointed with his health. He was limited again in 2025 and finished with a 4.25 ERA and 1.48 WHIP in just 29.3 innings before a flexor strain sidelined him.
Declining the option avoids injury risk on guaranteed money and gives both sides a reset. He’s expected to be ready for spring, barring setbacks. He could always end up back with the Yankees on a smaller contract.
Payroll impact
In tax terms, this is small money but smart money. The Yankees’ 2026 luxury-tax picture already carries heavy anchors with Aaron Judge making $40 million a year, Gerrit Cole $36 and Max Fried for $27.25. Adding Hill while passing on Loaisiga keeps a sliver of wiggle room for bullpen depth without changing the big picture. Spotrac’s 2026 tax table shows how tight the margins are; these are incremental, not defining, moves.
The winter ahead
Bullpen: Hill locks the left-handed role. With Bednar in the ninth, the Yankees need one more leverage righty and an optionable swingman to protect innings.
Rotation/big-ticket items: Unchanged. Any splash still hinges on how the front office navigates the top CBT tier and where they prioritize dollars after rotation injuries in 2025.
Infield depth: With Anthony Volpe expected to be out to start the season, the Yankees are looking for a versatile backup who can help them through the start of the year.
Retaining Hill and letting Loaisiga walk is housekeeping that sharpens the bullpen’s shape and trims a touch of risk. It won’t decide 2026, but it helps the Yankees allocate scarce payroll space where it matters most.