NEW YORK — The Detroit Tigers have the best pitcher in baseball. Tarik Skubal just won back-to-back Cy Young Awards. He is entering the final year of team control.
The Tigers chose not to extend him. They chose not to settle his arbitration case. Now they are headed toward a hearing with the largest gap in MLB history between player and team.
That decision could have ripple effects across baseball. It might even bring the Yankees back into the conversation.
The arbitration standoff reached historic levels
Tarik Skubal filed for $32 million. The Tigers countered at $19 million. The $13 million gap is the largest in arbitration history, according to ESPN.
If Skubal wins his case, he would set a new record for the largest arbitration salary ever. The current record belongs to Juan Soto, who settled with the Yankees for $31 million in 2024.
The Tigers operate as a file-and-trial club. That means they typically do not negotiate on one-year deals after exchanging figures. The two sides are now scheduled for a hearing in late January or early February.
The Yankees checked in but walked away quickly
According to Jon Heyman of the New York Post, the Yankees inquired about Skubal earlier this offseason. The conversation did not last long.
Detroit’s asking price was astronomical. Heyman reported that New York got the impression it would take “half the team” to acquire the Tigers ace. That revelation ended trade talks before they could gain momentum.
The Yankees moved on to other options. They have discussed MacKenzie Gore with the Nationals and Freddy Peralta with the Brewers. Neither pitcher carries the same asking price as Skubal.
The arbitration route signals something deeper
Detroit’s decision to head toward a hearing rather than simply paying Skubal is revealing. Other teams with superstars avoided this path in recent years.
The Angels gave Shohei Ohtani a record $30 million to avoid arbitration in 2023. The Yankees gave Soto $31 million in 2024. The Blue Jays paid Vladimir Guerrero Jr. $28.5 million last season before ultimately signing him to a $500 million extension.
The Tigers chose a different approach. By filing at $19 million, they will now have to argue in front of Skubal why he deserves less money. Arbitration hearings are awkward. Teams must make the case that their own player is not worth what he believes.
Skubal remains the best pitcher in baseball
The 29-year-old left-hander dominated again in 2025. He went 13-6 with a 2.21 ERA and 241 strikeouts over 195.1 innings. He led the American League in ERA and WHIP (0.89). He became the first AL pitcher to win consecutive Cy Young Awards since Pedro Martinez in 1999 and 2000.
His postseason performance was equally impressive. Across three starts and 20.2 innings, Skubal posted a 1.74 ERA with 36 strikeouts. He set a record for most consecutive strikeouts in a postseason game with seven.
Players of Skubal’s caliber rarely reach free agency. He is set to become an unrestricted free agent after the 2026 season. His agent, Scott Boras, will command a contract that could exceed $400 million.
The Yankees desperately need rotation help
New York enters 2026 with three starters recovering from major injuries. Gerrit Cole is targeting a May or June return from Tommy John surgery. Carlos Rodon had elbow cleanup surgery in October and could return in late April. Clarke Schmidt also underwent Tommy John surgery in July and might miss the entire season.
The projected Opening Day rotation includes Max Fried, Cam Schlittler, Luis Gil, Will Warren, and Ryan Yarbrough. Only Fried is a proven frontline starter. The dropoff from Cole or Rodon to the current options is significant.
“I just think the more, the better,” general manager Brian Cashman said in December about adding pitching. The Yankees missed on Edward Cabrera, who was traded to the Cubs. They lost out on Tatsuya Imai, who signed with the Astros.
The door could reopen if relations deteriorate
The arbitration hearing could make things worse between Skubal and the Tigers. Regardless of who wins, the process often leaves hard feelings. The team will publicly argue that Skubal is not worth what he is asking.
If that relationship sours further, Detroit may reconsider its position on a trade. The asking price would still be steep. But a motivated seller is different from a team content to wait.
For the Yankees, revisiting the possibility of acquiring Skubal later in the offseason or at the trade deadline remains in play. The combination of arbitration uncertainty and trade chatter ensures his future will be one of the most watched storylines of the 2026 season.
For now, Skubal remains in Detroit. But this standoff suggests he may not be there much longer.
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