The Blue Jays are reportedly in agreement with free agent starter Cody Ponce on a three-year, $30MM contract. The deal is pending a physical and has yet to be announced by the team. The Jays have two openings on the 40-man roster and do not need to make a corresponding move. Ponce, a client of Excel Sports Management, returns to the majors after an MVP-winning season in the Korea Baseball Organization.
Toronto continues to load up in the rotation on the same day they finalized their seven-year contract with Dylan Cease. They already had a strong top four with Cease, Trey Yesavage, Kevin Gausman and Shane Bieber. Ponce and José Berríos project as the fifth and sixth starters in what looks like one of the strongest rotations in baseball. Eric Lauer, who pitched to a 3.18 ERA over 104 2/3 innings in a swing role this year, is down to seventh on the depth chart.
The three-year deal and $10MM average annual value suggests the Jays view Ponce as a starter. He doesn’t have much rotation experience in the big leagues, starting five of 20 appearances with the Pirates between 2020-21. Ponce struggled in that first look but has reinvented himself since moving to Asia. He pitched parts of three seasons in Japan before a breakout 2025 season with the KBO’s Hanwha Eagles.
Ponce took the ball 29 times and turned in a 1.89 earned run average across 180 2/3 innings. He recorded a league-best 36.2% strikeout percentage against a tidy 6% walk rate. Ponce led the league with 252 strikeouts overall and was the only KBO pitcher with a sub-2.00 ERA in more than 100 innings.
The numbers alone would have been enough for Ponce to get back on the MLB radar. The more important factor for his contract was that his stuff has taken a matching jump. Ponce averaged 93.2 MPH on his fastball during his big league look, but a scout with a non-Toronto team told MLBTR in October that his velocity had climbed into the mid-90s. Eno Sarris of The Athletic wrote earlier this week that his average heater was in the 95 MPH range, and he has been clocked up to 98. Ponce has reportedly picked up a splitter — the carrying pitch for Yesavage and Gausman as well — and mixes in a cutter and curveball.
Ponce throws harder and has better secondary stuff than Erick Fedde did when he returned to North America after his own MVP season in Korea. As a result, the 31-year-old gets an extra year and doubled the $15MM guarantee that Fedde received from the White Sox over the 2023-24 offseason. Fedde, for what it’s worth, pitched well in his first year back before his numbers cratered this past season.
It’s a strong deal for Ponce, who tops MLBTR’s prediction of two years and $22MM. It’s by far the biggest payday of his career. Ponce received a signing bonus a little north of $1MM as a second-round pick by the Brewers in the 2015 draft. He did not come close to the service time to qualify for arbitration in his first stint in MLB and played on a $1MM contract with the Eagles.
The salary breakdown hasn’t been reported, but an even distribution of $10MM annually would push Toronto’s projected payroll to roughly $272MM (courtesy of RosterResource). The $10MM average annual value pushes their luxury tax projection above $280MM. The Jays are in the second tier and are taxed at a 42% rate on spending between $264MM and $284MM. That means they’ll pay $4.2MM in taxes for the first season of the Ponce contract. That’s a relative drop in the bucket given the amount the Jays are spending, but the payroll only seems likely to climb. They’d like to re-sign Bo Bichette and will almost certainly add a high-leverage reliever to join Jeff Hoffman and Louis Varland at the back end.
Spending beyond the $284MM mark would raise their tax penalties and result in their top pick in the 2027 draft being moved back 10 spots. That doesn’t appear to be much of a deterrent for a team that forfeited its second and fifth-highest picks in next summer’s draft and $1MM from its international bonus pool to sign Cease. The Jays are all in after coming tantalizingly close to their first World Series in three decades.
If payroll does become an obstacle to re-signing Bichette or adding to the bullpen, the Jays could look to shop Berríos. He’s making $18MM next season and will need to decide whether to opt out of the remaining two years and $48MM on the deal after 2026. It’s not an egregious contract but looks above market for what’ll be ages 32-34 on a pitcher who has struck out fewer than 20% of batters faced in consecutive seasons. Berríos is a solid source of back-of-the-rotation innings, but the Jays would probably need to pay down some of the money and/or take back a slightly underwater deal in a trade.
The simpler path would be to keep everyone and open the season with a six-man rotation if no one suffers an injury during Spring Training. No team gets through an entire season using only five starters. The pitching staff logged a lot of innings this fall. Gausman and Bieber will be free agents after next season, and while Berríos doesn’t look like he’s trending towards an opt-out, that could change with a strong platform year. Lauer will also return to the open market next winter.
Aside from Yesavage, the Jays don’t have much in the way of upper level pitching prospects. Former top prospect Ricky Tiedemann is on the 40-man roster and will probably make his MLB debut in 2026, but he missed the entire ’25 season and has pitched 140 innings since being drafted in 2021. The durability concerns might push him to the bullpen, and even if the Jays want to give him another chance as a starter, they’re certainly not going to let him throw 150 innings. Jake Bloss is unlikely to be a factor until the second half after undergoing elbow surgery in May. The Ponce signing probably rules the Jays out on bringing back Chris Bassitt or Max Scherzer but doesn’t make a Berríos trade a foregone conclusion.
Ken Rosenthal of The Athletic first reported that Ponce and the Jays were finalizing a three-year deal. ESPN’s Jeff Passan had the $30MM guarantee.
Image courtesy of USA Today Sports.
