The Philadelphia Phillies have signed left-handed reliever Jose Alvarado to a three-year contract extension, team president of baseball operations David Dombrowski announced Friday.
The deal links Alvarado to the Phillies through the 2025 season and includes a team option for 2026. According to multiple reports, Alvarado will make $9 million in both 2024 and 2025 while the 2026 option is also for $9 million or a $500,000 buyout.
Alvarado’s deal calls for a $100,000 bonus for winning World Series MVP or the Mariano Rivera/Trevor Hoffman reliever of the year award and $50,000 for finishing second or third for the reliever honor. He would get $50,000 for making the All-Star team, winning an MVP or winning a Gold Glove.
The agreement comes one week after the sides avoided an arbitration hearing by agreeing to a $3.45 million salary for 2023 and one day after the Phillies agreed to a two-year, $7.25 million contract with right-handed reliever Seranthony Domínguez to avoid arbitration there as well.
A 27-year-old left-hander, Alvarado would have been eligible for free agency after this season.
Alvarado went 4-2 with a 3.18 ERA and two saves in 59 relief appearances last season. He had a 5.56 ERA in 12 postseason appearances for the National League champions, getting the win in the Game 5 pennant clincher against the San Diego Padres.
He failed to hold a one-run lead in the sixth inning of Game 6 of the World Series, relieving Zack Wheeler with two on and giving up a three-run homer to Houston Astros slugger Yordan Alvarez. The Astros went on to a 4-1 victory that won the title.
The Associated Press contributed to this report.