Yankees To Exercise Club Option On Tim Hill, Decline Club Option On Jonathan Loaisiga

The Yankees are exercising their club option on Tim Hill, according to a report from ESPN’s Jorge Castillo. Hill will return to New York on a $3MM salary in 2026. Castillo also reports that the Yankees are not picking up their club option on right-hander Jonathan Loaisiga. Loaisiga will head into free agency rather than collecting what would have been a $5MM salary next year.

Neither of these decisions are especially surprising. Hill, 36 in February, has turned in excellent production for the Yankees over the past two seasons with a 2.68 ERA in 111 innings since being acquired from the White Sox midway through the 2024 season. His peripheral numbers took a big step back in 2025 thanks to eight home runs surrendered that coincided with the highest barrel rate of his career (7.9%). That jump wasn’t helped by the fact that Hill has never been a strikeout artist, and his 13.9% punch out rate this year was actually his best since 2021.

Even so, Hill continues to generate ground balls at some of the highest rates in the league. That makes keeping him in the bullpen at a $3MM price tag something of a no-brainer, and he’ll enter the year as the club’s top left-handed relief option barring an external addition that supplants him on the depth chart. That could leave him in the mix for some high leverage opportunities next year, while David Bednar and Camilo Doval shut things down from the right side.

As for Loaisiga, the right-hander’s eighth year with the Yankees looks likely to be his final one. At one point in his career, the hard-throwing righty looked like a future closer as he posted a 2.50 ERA with a 3.03 FIP between the 2020 and ’21 seasons. Things have unraveled for Loaisiga since, however. He was only pedestrian in 2022 and then missed nearly two full seasons due to injuries. He did manage to make 30 appearances for the Yankees this year, but his 97 ERA+ was just below average and a 5.83 FIP suggested even that figure was aided by some good fortune. His season was cut short by a flexor strain, and he appears likely to enter the market this winter on the hunt for a minor league deal.

With Bednar, Doval, Fernando Cruz, Jake Bird, Ian Hamilton, and Mark Leiter Jr. all in the mix for next year, the Yankees look to be reasonably well set up in the bullpen on the right side. An addition beyond that group can’t necessarily be ruled out, however, as the departures of both Devin Williams and Luke Weaver in conjunction with shaky performances down the stretch from both Bednar and Doval could create a desire to bring in a more surefire closing option.