Phillies exercise Jose Alvarado’s option, bet $9 million that he can regain his late-inning form
Aug 20, 2025; Philadelphia, Pennsylvania, USA; Philadelphia Phillies pitcher JosŽ Alvarado (46) after pitching out of the eighth inning against the Seattle Mariners at Citizens Bank Park. Mandatory Credit: Bill Streicher-Imagn Images Bill Streicher
The Phillies exercised Jose Alvarado’s $9 million club option for 2026, a decision that makes sense both financially and competitively. The option, which included a $500,000 buyout, was part of the extension that he signed in 2023. The Phillies have shown that they are not against spending to stay in contention, and an $8.5 million net decision for a proven left-handed power reliever was a smart move.
It also shows that the team has confidence in Alvarado after a turbulent 2025. Alvarado missed 80 games for a positive test for PEDs, which made him ineligible for postseason play. When he returned in August, he worked sporadically and eventually landed on the injured list with a forearm strain. Despite that, his stuff and track record were enough for the front office to bet on a full rebound without the lengthy suspension.
From a baseball standpoint, the move clarifies the bullpen blueprint heading into 2026. Jhoan Duran is the owner of the ninth inning, but Alvarado, when healthy and in the pen, can handle the high leverage innings before he comes in. His sinker and cutter combination can neutralize both left and right-handed hitters and shorten games by handling the eighth or high-leverage spots. That kind of presence gives Rob Thomson flexibility to stagger matchups, rest Duran appropriately, and push other arms like Matt Strahm or Orion Kerkering into more defined roles that fit their skillset a little better.
READ MORE: Phillies Stay or Go: Jose Alvarado
The decision also reduces offseason pressure. With Alvarado back, the team avoids having to enter a free-agent market that is very thin on impact left-handed relievers. It also keeps Strahm free for multi-inning work instead of being forced into a setup job, which he was thrust into late in the season and in the postseason. The Phillies can now focus on adding a right-handed bridge piece with swing-and-miss stuff, which will round out the bullpen.
Financially, the number makes absolute sense. The market for high-leverage arms has climbed fast, and replacing an arm similar to his would easily cost 1.5x what they’re paying for this season. Alvarado’s option provides cost certainty without long-term exposure, and if he regains his 2023 form, it becomes an absolute bargain. Even if he settles as a quality setup man, the return still makes sense relative to having to compete on the open market for external options.
This is a calculated trust exercise. His suspension raised questions, but Dave Dombrowski’s message is clear: they still see a dominant late-inning arm worth betting on. If Alvarado stays healthy and finds rhythm by spring, the bullpen suddenly looks deeper and more dangerous in the late innings. This is the kind of stability that can help anchor the bullpen all season long.
Steve Hamilton
Steve may have been born in California, but don’t let that fool you. After dating a local woman and clashing with her and her family over sports for decades, he has an affinity for Philly sports. Balancing love for Philly and Bay Area sports teams may seem impossible, we can all agree that the Cowboys are the true evil.
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