The Reds are continuing to reshape their bullpen - and their budget - with the official signing of left-handed reliever Caleb Ferguson to a one-year, $4.5 million deal. It’s the club’s third free-agent addition of the winter, and while it checks off a key need, it also tightens an already snug payroll situation.
Ferguson, 29, comes to Cincinnati after a solid 2025 campaign split between the Pirates and Mariners, where he posted a 3.58 ERA across 70 appearances. That kind of reliability from the left side is exactly what the Reds were looking for coming out of the Winter Meetings. With bullpen depth being one of the more pressing items on their offseason checklist, Ferguson’s arrival brings some much-needed balance to the late-inning mix.
But while the move addresses the Reds' second-biggest need, it also underscores the financial gymnastics the front office is performing this winter. Ferguson’s $4.5 million salary eats into a payroll that’s already operating on a tight margin, especially after the club’s unsuccessful pursuit of hometown slugger Kyle Schwarber. Cincinnati reportedly offered Schwarber a creatively structured five-year, $125 million deal, but came up short - leaving them still searching for middle-of-the-order firepower.
With Ferguson now in the fold, the Reds have less than $10 million in payroll flexibility left to address the rest of their offseason needs - unless, of course, they make a trade to shed some salary. That’s a tough spot to be in for a team trying to build off a 2025 playoff appearance and take the next step forward.
Team officials have indicated that the 2026 payroll will remain in the $115 million to $119 million range, roughly in line with last season. So far, they’ve committed $15.8 million in 2026 salary to three free-agent signings:
- RHP Keegan Thompson: one year, $1.3 million
- Closer Emilio Pagán: two years, $20 million (split evenly across 2026 and 2027)
- LHP Caleb Ferguson: one year, $4.5 million
Add in the $1.25 million salary that came with backup catcher Ben Rortvedt (claimed off waivers), and the Reds now have eight players under contract for 2026 at a total of $40.8 million. That figure jumps to $52.8 million when you factor in the $12 million in dead money from Jeimer Candelario’s 2026 salary - a cost the Reds absorbed when they released him over the summer.
Here’s a look at the other guaranteed contracts for 2026:
- 3B Ke’Bryan Hayes: $8.75 million
- RHP Hunter Greene: $8.33 million
- C Jose Trevino: $5.75 million
- C Ben Rortvedt: $1.25 million
- LHP Sam Moll: $875,000
- INF Jeimer Candelario: $12 million (dead money)
Beyond those deals, Cincinnati is projected to owe another $40 million to $50 million to 10 arbitration-eligible players - assuming they don’t trade from that group. That leaves nine roster spots still to be filled for Opening Day, including several likely to go to pre-arbitration players like Elly De La Cruz, Andrew Abbott, and Noelvi Marte, plus other 40-man roster candidates and the usual in-season churn.
In short, the Reds are walking a financial tightrope. Ferguson’s addition helps the bullpen, no question - but the Reds still have work to do if they’re going to round out this roster and make another postseason push. The margin for error is slim, and unless they find a way to clear some money or strike gold on a bargain deal, every move from here on out will require careful calculation.
The bullpen just got better. Now the pressure shifts to the rest of the roster - and the front office’s ability to make the dollars stretch.