Josiah Gray and Nationals Reach Deal to Avoid Arbitration

The Washington Nationals just made a calculated, low-risk move by signing right-hander Josiah Gray to a one-year, $1.35 million contract. This lets them avoid salary arbitration and basically means they’re betting on a healthy return from Tommy John surgery.

The deal freezes Gray’s salary at last year’s level. Washington gets a chance to see if their former All-Star can reclaim his form after missing the entire 2025 season.

Nationals Lock In Josiah Gray at Pre-Injury Price

Settling at $1.35 million—the same figure Gray earned before—says a lot about the market for an injured pitcher. It also shows the Nationals want to keep a key rotation piece without overcommitting.

Arbitration can get messy, but this agreement keeps things simple. Both sides skip the risk of a hearing.

Contract Details and Arbitration Context

By agreeing to terms now, Gray and the Nationals avoid the formal arbitration process. Normally, player and team would exchange salary figures and a panel would pick one.

This deal instead:

  • Matches his previous salary of $1.35 million
  • Buys the Nationals a year of certainty as Gray returns from injury
  • Preserves Gray’s future earning power if he rebounds strongly in 2026 and beyond
  • Gray stays under team control and is on track to hit free agency after the 2027 season. Washington still has three more years to figure out his long-term role.

    Tommy John Comeback Sets the Stage for 2026

    Gray missed all of 2025 after Tommy John surgery in July 2024. That’s a major procedure, but these days it’s almost routine for pitchers.

    He lost a full season of big-league innings, but the Nationals saw some encouraging signs late in the year as he started working his way back to the mound.

    His rehab work in the minors wasn’t about stats. It was about health, mechanics, and building confidence as he tested his elbow in real games.

    Rehab Progress and Minor League Tune-Up

    In September 2025, Gray made three minor league rehab starts. That’s a big milestone for any pitcher coming off Tommy John.

    Those outings let the organization:

  • Monitor his velocity and command under live-fire conditions
  • Evaluate how his arm responded to normal between-start routines
  • Project his readiness for a full workload in the upcoming season
  • If Gray shows up to spring training without setbacks, he’ll probably be in the mix for a rotation spot. The Nationals will likely manage his innings as he moves from rehab mode back into real competition.

    From All-Star Peak to Injury Setback

    Gray’s path with Washington hasn’t exactly been smooth. He arrived with promise, flashed All-Star talent, and then had that momentum interrupted by injury.

    The Nationals hope this contract year is a turning point, not just a footnote.

    His 2023 season is still the best proof of what he can do when things click—even on a team that was still rebuilding around him.

    Gray’s Performance Track Record

    Gray’s recent seasons show he’s already competed at a high level in the majors:

  • 2023: All-Star selection, finishing with an 8–13 record and a 3.91 ERA
  • 2024: Made two starts before a right forearm flexor strain landed him on the injured list on April 9, ultimately leading to Tommy John surgery in July
  • Career: 17–27 record with a 4.84 ERA across 73 starts and one relief appearance
  • Those numbers came during stints with both the Los Angeles Dodgers (2021) and the Nationals (2021–25). Washington gave him the runway to grow from promising prospect to rotation mainstay.

    What This Means for the Nationals’ Rotation and Payroll

    For a club still figuring out its next contender, Gray’s upside is hard to ignore. A healthy, mid-rotation or better version of Gray gives the Nationals a cost-effective building block.

    Pitching is expensive and unpredictable in this market. The modest salary also gives Washington some payroll flexibility as they decide how aggressive to get around their emerging core in the next few years.

    Other Arbitration Cases on the Horizon

    Gray is just one part of the Nationals’ bigger offseason puzzle. Five other players on the roster still qualify for arbitration, and they’ll probably swap salary figures with the team by January 8.

    Those talks will help shape the club’s 2026 payroll. They might also affect how much space is left for adding players during the season.

     
    Here is the source article for this story: Source: Gray, Nats reach deal to avoid arbitration

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