Yankees sign Cabrera, Schmidt; non-tender Leiter

The Yankees agreed to one-year contracts with infielder/outfielder Oswaldo Cabrera and right-hander Clarke Schmidt on Friday, avoiding arbitration, while non-tendering five pitchers ahead of a late-afternoon deadline.

Among the players cut loose was right-hander Mark Leiter, Jr., who made 59 appearances but faded during the second half of the season. The club also non-tendered right-handers Michael Arias, Jake Cousins, Scott Effross, and Ian Hamilton, making all five immediate free agents.

Schmidt agreed to a $4.5 million salary for 2026 as he continues his rehab from Tommy John surgery performed in July. The 29-year-old aims to return during the second half of the season, coming off a campaign in which he posted a 4-4 record with a 3.32 ERA in 14 starts.

Cabrera will earn $1.2 million next year. The utilityman is expected to be ready for Spring Training after sustaining a gruesome season-ending left ankle fracture on May 12. The 26-year-old hit .243 with one homer and 11 RBIs in 34 games.

Leiter was arguably the biggest surprise of the Yanks’ non-tenders, coming off a season in which he started strong but struggled in the second half. His 10.06 strikeouts per nine innings stood out, but he was inconsistent.

The 34-year-old did not allow an earned run in 23 of his first 26 appearances, pitching to a 6-7 record with two saves and a 4.84 ERA in 59 relief outings overall. He was acquired from the Cubs at the Trade Deadline in July 2024 and earned $2.05 million this past year.

Arias, 24, pitched to a 2.73 ERA with one save over 23 appearances at four levels of the Yankees’ system, including 17 at Double-A Somerset. He has yet to make his Major League debut; still pre-arbitration, his non-tender clears a 40-man spot.

Cousins, 31, underwent season-ending Tommy John surgery in June and isn’t expected to be available until the second half of 2026. He logged to a 2.37 ERA over 37 appearances for the Yanks in 2024 and earned $841,050 this past year.

Effross, 31, battled injuries throughout his Yankees tenure. He returned to make 11 appearances, finishing five games, but posted an 8.44 ERA and didn’t appear in the Majors after July 25. He earned $800,000 this past year.

Hamilton, 29, went 2–1 with a 4.28 ERA in 36 appearances. He allowed no runs in 26 of them, but the Yankees optioned him in late July. He earned $941,050.

The Yankees tendered contracts to eight arbitration-eligible players: infielder Jazz Chisholm Jr., right-hander David Bednar, right-hander Camilo Doval, shortstop Anthony Volpe, infielder/outfielder Jose Caballero, right-hander Luis Gil, right-hander Fernando Cruz and right-hander Jake Bird.

New York can continue negotiating with that group, with salary figures set to be exchanged in January ahead of potential hearings.