The Phillies and right-handers Jordan Romano have agreed on a contract, according to Jeff Passan of ESPN (X-Link). According to Scott Lauber of The Philadelphia Inquirer (X-Link), it’s a one-year deal worth $7.75 million. Reporter Jim Salisbury (X-Link) had previously suggested that the Phils were interested in Romano.

The Phils are betting on an upswing. Romano, 32 in February, just finished a frustrating and injury-plagued season with the Blue Jays but was their closer for three years before that. The right-hander saved 95 games for the Jays from 2021 to 2023, throwing 186 innings with a 2.37 earned run average. He struck out 30.3% of batters during that time, while issuing walks at a 9.2% clip and grounding on 42.3% of balls in play.

But 2024 was largely a lost season for him. He was on the injured list early in the season due to right elbow inflammation and never seemed to be fully healthy. He played on the IL all year, making just 15 appearances with a 6.59 ERA. His 21% strikeout rate in this small sample was not only below his previous work, but also below league average.

He underwent arthroscopic surgery on his elbow in July and was given an expected shutdown period of six weeks. The Jays had hoped to get Romano back on the mound before the end of the season, but that didn’t happen. His last major league appearance was on May 29.

The Jays could have retained Romano for another season via arbitration. Salaries almost never go down through the arb system, so MLBTR contributor Matt Swartz predicted this would be the right time for the same $7.75 million salary he earned in 2024. The Jays apparently weren’t willing to spend that much money to find out that Romano could overcome his lost season, as he wasn’t offered a 2025 contract. Last week, general manager Ross Atkins said that he expected Romano to be healthy and that he hoped to re-sign him, but probably at a lower price. Instead, it looks like Romano is getting a fresh start with a new organization with no pay cuts.

The Philadelphia bullpen has been in quite a bit of disarray over the last few months. They took action Seranthony Dominguez And Gregory Soto at the close of trading, then lost Jeff Hoffman And Carlos Estevez free agency at the end of the season. They still have some good weapons back there, including Orion Dungeon And Matt Strahmbut they’ve obviously been looking for bullpen upgrades this winter.

The decision for Romano also makes sense for financial reasons. The Phils have poured a lot of money into their roster in recent years, both through free agency and by extending incumbent players. This has meant that they have now paid the competition balance tax for three years in a row. In 2025, it was projected that they would once again have a high salary and CBT number before any off-season moves were made.

That seems to have led to a change in approach this winter. Despite being in contact with many of the top available free agents over the past few offseasons, they don’t appear to have taken any action Juan Soto frenzy and there were a lot of rumors about them trying to trade players like them Nick Castellanos, Alec Boehm and other.

They reportedly had some interest in re-signing Hoffman and Estévez, but both will likely sign contracts well beyond this pact for Romano. At the start of the offseason, MLBTR predicted Hoffman would receive a four-year, $44 million contract. That was before clubs reportedly expressed interest in him as a starter, which could potentially increase his earning power. Estévez was budgeted for a more modest guarantee of $27 million over three years, but still a notable signing.

By choosing Romano, the Phils hope to significantly improve their bullpen, but at a relatively low cost since they are buying cheaply. There is some risk here, as replacements are generally inconsistent and Romano has had an injury-plagued season, but it’s a logical gamble to take. If things go particularly well, it’s possible the Phils could extend a qualifying offer to Romano late next year. Qualified offers for helpers are rare, but guys like them Josh Hader, Raisel Iglesias And Will Smith have received them in the last few years.

Taking Romano into account, RosterResource projects a $270 million payroll for the Phillies. That would be a franchise record by far, as Cot’s Baseball Contracts has seen values ​​in the $242 million to $244 million range in recent years, but never higher. RR forecasts a CBT value of $289 million next year. That’s not only above the base threshold of $241 million, but also above the second and third tiers of $261 million and $281 million, respectively. As a third-party CBT payer, the Phils expect a 50% property tax next year, as well as surcharges of 12%, 45% and 60% for spending outside the higher tiers. That means they currently already have a 95% tax rate on any additional spending and a 110% tax rate if they go above $301 million, although a successful trade on a significant contract could see them go lower . If they stay above the third line of $281 million, their top pick in the 2026 draft would also fall ten spots. All of this could be an important factor as the club looks to make further improvements over the remainder of the off-season.

For the Jays, reshaping the bullpen will also be a big storyline in the coming weeks and months. Their relief group had a collective ERA of 4.82 in 2024, ahead of only the Rockies and a key factor in their disappointing season. Turning things around will require better results from the bullpen, but they will need to do it with a new closer. Chad Green made 17 saves in 2024 while Romano was largely out of action and could be the favorite for the job among the players currently on the roster, but they could perhaps find an outside addition and push Green into a rebuilding role.