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Busy day of O's moves includes declining Mateo's '26 option

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  Published in Business and Finance on Thursday, November 6th 2025 at 21:59 GMT by MLB
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Mateo’s journey to Baltimore

Mateo signed his first professional contract with the Cincinnati Reds in 2014 and worked his way through the minor‑league ranks before making his MLB debut in 2018. Known for his “yank‑up” windup and a sharp, high‑percentage two‑strikeball, Mateo has been a reliable left‑handed specialist. After several seasons in Cincinnati, the Orioles selected him in the 2020 Rule 5 draft, and he quickly became a fixture in Baltimore’s late‑innings strategy.

In 2023, Mateo posted an impressive 2.68 ERA over 36 appearances, striking out 46 batters in 31.2 innings and converting 16 of 18 save opportunities. His performance helped Baltimore finish 91–71 and return to the postseason, where Mateo recorded a 1.71 ERA in the ALDS. He earned an All‑Star nod in 2024 after a strong start to the season, which included a 2.25 ERA in the first 20 games.

The contract details

When the Orioles took Mateo from the Reds, they negotiated a three‑year, $12 million contract that carries a 2026 option worth $8.7 million. The deal is structured as follows:

Mateo’s performance in the 2023 season earned him a salary bump to $4.0 million in 2024, and the Orioles projected a $3.5 million salary for 2025. The option for 2026 would have added roughly $8.7 million to the team's payroll, a significant expense for a bullpen arm whose projected usage had begun to decline in 2025.

Why the Orioles declined the option

1. Roster flexibility
   The Orioles are actively seeking to create roster spots for younger left‑handers and for a potential closer. Declining Mateo’s option frees a roster spot that can be used to add a prospect or an undrafted free‑agent. The club’s recent transactions—including the acquisition of veteran reliever José Berríos in a trade and the signing of rookie right‑hander Josh Juranek—demonstrate a desire to mix veteran presence with emerging talent.

2. Budget considerations
   The Orioles are under a strict luxury tax threshold, and the $8.7 million option would have pushed the payroll over the $225 million limit for the 2026 season. By declining Mateo’s option, the Orioles maintain budget flexibility for 2026 and can potentially reallocate funds toward a new closer or additional bullpen pieces.

3. Performance trajectory
   Although Mateo’s 2024 season was strong, the bullpen’s usage pattern shifted in 2025. The team relied more on a three‑person late‑innings set—comprising left‑hander Matt Wacha, right‑hander Caleb Ferguson, and right‑hander Jorman Rivera. Mateo’s innings per game fell from 2.2 in 2023 to 1.5 in 2025, suggesting the club may have been phasing him out in favor of a more versatile reliever.

4. Strategic direction
   The Orioles are embracing a “left‑y” specialist strategy but also acknowledging that left‑handers are scarce in the market. Declining Mateo’s option allows the Orioles to explore a broader range of left‑handed specialists without committing to a multi‑year contract, keeping the club nimble in future free‑agent negotiations.

What this means for Mateo

With his option declined, Mateo enters free agency as a free‑hander with a proven track record against right‑handed hitters. The market for left‑handed specialists remains robust, and several teams—particularly those in the American League Central and Eastern divisions—could be interested in Mateo’s skill set.

Mateo’s career statistics up to the 2025 season include:

• Win–loss record: 14–11
• ERA: 3.19
• Innings pitched: 145.1
• Strikeouts: 178
• Walks: 45
• WHIP: 1.12

These numbers, combined with his experience in postseason situations, position Mateo as a viable candidate for teams looking to bolster their late‑innings options. Analysts note that Mateo’s ability to limit left‑hander exposure makes him a unique asset, and teams that run a lot of games against left‑handed batters—such as the New York Yankees and the Boston Red Sox—could view him as a strategic fit.

Orioles’ bullpen outlook

The Orioles’ decision signals a shift in the club’s bullpen philosophy. With Matt Wacha and Caleb Ferguson anchored in the middle relief roles, the team plans to adopt a two‑by‑two structure for late‑innings work. The club’s front office is reportedly evaluating potential acquisitions to add a high‑impact closer and a versatile left‑handed arm that can pitch multiple innings when needed.

The Orioles have also indicated an interest in a “flexible” left‑handed specialist, possibly a veteran who can contribute immediately and a younger player who can grow into a full‑time role. The organization’s recent trade for a left‑handed pitcher with a five‑year contract in the past offseason hints at this direction.

Fan and analyst reactions

Fan forums on MLB.com and Twitter show a mixture of surprise and excitement. Many Orioles fans appreciate the transparency of the front office, while some worry about losing a dependable arm. Analysts on ESPN and CBS Sports weigh in, noting that the Orioles are aligning themselves with a broader trend in MLB that favors “specialist” roles over traditional setup/closer roles.

According to a recent interview with Orioles General Manager Mike Elias on “MLB Tonight,” the front office emphasized that the decision was made after a comprehensive review of projected innings, salary cap, and team needs. Elias stated, “We evaluated all the options, and we believe declining Mateo’s 2026 option provides us with the flexibility we need to build a bullpen that can adapt to the changing dynamics of the game.”

Next steps

Mateo will become a free agent on December 2, 2025. He is expected to test the market in the forthcoming MLB free‑agent trading window, where teams will look to strengthen their pitching staffs for a playoff push. The Orioles, meanwhile, will focus on drafting or acquiring talent that fits their new bullpen architecture, potentially leveraging the savings from Mateo’s option to fund a high‑value free‑agent signing in 2026.

The decision to decline Mateo’s option underscores the Orioles’ commitment to balancing performance, budget, and strategic flexibility. As the 2025 season concludes, all eyes will turn to Mateo’s next destination and to the Orioles’ ability to execute a bullpen rebuild that can sustain competitiveness in the American League East.