by Ken Rosenthal

Comment

Free-agent left-hander CC Sabathia has reached preliminary agreement on terms with the Yankees on a seven-year contract worth approximately $161 million, according to a major-league source.

Sabathia will receive an opt-out clause after three years, which was a prerequisite for him to sign with any team, not just the Yankees, according to a source. The deal is all cash and will include no deferrals.

The deal has an average annual value of $23 million. Johan Santana's previous record contract for a pitcher — six years, $137.5 million — had an average annual value of approximately $20.5 million after accounting for deferrals.

The contract is the largest ever awarded to a starting pitcher and the fourth-largest in major-league history, behind Alex Rodriguez's two free-agent contracts and Manny Ramirez's original deal with the Red Sox.

"I'm sure every team in baseball would love to have him. He's a guy who's an intimidating factor on the mound," Yankees captain Derek Jeter told the Associated Press at the winter meetings.

Sabathia, 28, agreed to the deal late Tuesday night after Yankees general manager Brian Cashman flew to San Francisco to meet with him, his agents, and his wife, Amber.

The deal will be officially completed after Sabathia passes a physical and the remaining language issues are resolved.

Sabathia is expected to receive an opt-out clause after three years, which was a prerequisite for him to sign with any team, not just the Yankees, according to a source.

Such a clause would give Sabathia the chance for another monster payday in free agency at age 31 — and provides him with an escape if he finds the New York experience unappealing.

"It illustrates that baseball is a very different economic model than the real world," said Scott Boras, the agent for Manny Ramirez, Mark Teixeira and other free agents also seeking big deals.

It was the third meeting in three days between Sabathia and the Yankees. The first two discussions occurred in Las Vegas at the winter meetings. Sabathia is a native of Vallejo, Ca., in the Bay Area.

The Yankees' first offer to Sabathia was for six years, $140 million. They added the seventh year to further distance themselves from the Brewers and other clubs interested in Sabathia.

The Brewers made the only other known offer to Sabathia — five years, $100 million with deferrals. But the Giants, Angels and Red Sox all showed varying degrees of interest in signing the pitcher.

News of an agreement between Sabathia and the Yankees was first reported by the New York Post.