6:26pm: Santana continues to consider offers from the Orioles and the Jays, ESPN's Enrique Rojas tweets, noting that two other clubs had expressed interest this afternoon (Spanish link).
4:08pm: FOX Sports' Jon Morosi tweets that a source tells him that Santana could wait "days" before signing. 4:00 has come and gone, and there's no news about his decision.
12:08pm: Rojas writes (Spanish-language) that Santana is deciding between the Jays, who have offered $14MM, and the Orioles, who have offered $13MM plus incentives.
11:43am: Enrique Rojas of ESPN Deportes tweets that Santana will sign with the Jays for $14MM by 4:00pm if he does not receive a better offer by then.
11:40am: The deal is not yet done, but Santana and the Jays are discussing one, the New York Post's Joel Sherman tweets.
11:18am: The Blue Jays have agreed to terms with Ervin Santana on a one-year, $14MM deal, Dionisio Soldevila of ESPN Deportes tweets. Earlier in the day, Soldevila had reported that Santana would sign with an AL club for $14MM. Santana has until recently been represented by Proformance, although there have been recent reports about the possibility of Santana ending his relationship with that agency.
Santana pitched 211 innings with the Royals in 2013, posting a 3.24 ERA with 6.9 K/9 and 2.2 BB/9. After the season, he rejected a $14.1MM qualifying offer, hoping to strike it big on the free agent market. Obviously, that didn't happen, as the issue of draft pick forfeiture supressed the market for Santana and several other players. The Blue Jays have two first-round picks, at No. 9 and No. 11, and both are protected. So they'll have to give up the No. 50 overall pick for signing Santana.
Santana's one-year deal gives him the opportunity to hit the free agent market again next offseason, when he will turn 32. If he performs well, however, he may still have to deal with the qualifying offer issue. Santana ranked sixth on MLBTR's list of the top 2013-14 free agents. Ubaldo Jimenez, who ranked 11th and also rejected a qualifying offer, received four years and $50MM from the Orioles, and Santana reportedly sought a similar contract. ESPN's Buster Olney recently tweeted that teams were concerned about the health of Santana's elbow.
Assuming Santana remains healthy, however, $14MM plus the No. 50 overall draft pick seems like a very reasonable price for the Blue Jays to pay a young-ish, solidly-above-average starting pitcher who topped 200 innings last year. Santana will provide a significant boost to a Jays rotation that was unsettled after R.A. Dickey, Brandon Morrow and Mark Buehrle.