McDonald's $1MM salary is not fully guaranteed, however, reports Mark Gonzales of the Chicago Tribune via Twitter. The 29-year-old can also earn incentives, tweets Bruce Levine of 670thescore.com.

McDonald hit the open market in September when he refused an outright assignment from the Pirates. Things never came together for him last year, as he only got six starts and ended up with a 5.76 ERA in 29 2/3 MLB innings. Control was a particular issue, as McDonald ended up with 6.1 BB/9. In 33 Triple-A innings in 2013, McDonald scuffled to a 6.55 ERA.

Nevertheless, McDonald offers tantalizing upside. Over the first half of 2012, he carried a 2.37 ERA with a 3.23 K:BB ratio and allowed opponents to hit just .196/.258/.312 against him. (Of course, those numbers flipped to a 7.52 ERA, 1.34 K:BB rate, and .292/.388/.551 line in the second half.) And though he dealt with a shoulder issue last year, McDonald has otherwise been durable over his professional career.

Bruce Levine of 670thescore.com first reported the signing on January 31st (via Twitter). Carrie Muskat reported via Twitter that the deal was official. 

• The Pirates have shut down Wandy Rodriguez because of persistent pain and discomfort in his left forearm, according to a statement from GM Neal Huntington. The move will provide more time for the flexor tendon in Rodriguez's forearm to heal and sets him up to be ready for Opening Day 2014, Huntington said.
• Rodriguez says he hasn't considered whether he'll trigger his $13MM player option for next year, Rob Biertempfel of the Pittsburgh Tribune-Review tweets. However, it's unlikely that he doesn't do so, Biertempfel says. The Pirates are on the hook for $7.5MM of the option.
• The Twins don't plan to sign James McDonald, who elected free agency today after being outrighted to Triple-A by the Pirates, Darren Wolfson of 1500ESPN.com says. Minnesota will re-evaluate McDonald and take a look at his medicals over the offseason, however.

Jeff Todd contributed to this post.

SEPT. 13: McDonald cleared waivers and was outrighted to Triple-A Indianapolis, according to the International League transactions page. As a player that has been outrighted off his 40-man roster but has three or more years of Major League service time, baseball's collective bargaining agreement allows McDonald to elect free agency following the season.

SEPT. 7: The Pirates announced that they have designated James McDonald for assignment.  The move will allow the Bucs to promote Brandon Cumpton from Triple-A Indianapolis.

McDonald, 28, was just reinstated from the disabled list after being out of action since April 30th due to issues with his throwing shoulder.  The right-hander wasn't terribly sharp in six starts this season, posting a 5.76 ERA with 7.6 K/9 and 6.1 BB/9.  McDonald was once considered to be a high-upside prospect when he started out with L.A. and was rated No. 56 nationally by Baseball America before the '09 season.  For his career, McDonald owns a 4.20 ERA with 7.8 K/9 and 4.1 BB/9.

McDonald spent the entirety of the 2011-12 seasons in Pittsburgh's rotation, hurling 171 innings of 4.21 ERA each year with a combined 7.7 K/9 and 3.9 BB/9.  His fastball velocity has declined in each of the past two years, though, falling from an average of 92.7 mph in 2011 to 91.8 in 2012 and 90.5 in 2013's small sample of 29 2/3 innings.

To keep track of McDonald and everyone else in DFA limbo, check out the MLBTR DFA Tracker.

Steve Adams contributed to this post.

• A decrease in payroll isn't the reason for the Twins' struggles, argues Phil Mackey of 1500 ESPN. Mackey cites the Athletics as a team whose model the Twins should follow, as they consistently draft talent and sell high on those players to replenish their farm system. Mackey points out that the Twins have only had two starters they've drafted since 2006 — Kyle Gibson and Jeff Manship — impact the Major League rotation. Mackey searches for the Twins' last instance of selling high came, naming only this past offseason's trades of Denard Span and Ben Revere. Indeed, the Twins have opted to hang onto names like Michael Cuddyer, Josh Willingham, Jason Kubel and others in recent years instead of trading them at their value's apex.
• Twins owner Jim Pohlad said after the team's 18-3 loss to Oakland earlier this week that the loss team's play is "embarrassing," and he will afford GM Terry Ryan with financial resources to make changes via free agency, according to Charley Walters of the St. Paul Pioneer Press. "We made a couple trades last year," said Pohlad. "I'm not sure that we can rely on that this year. So if we're going to do something, it's going to have to be that way (free agency)." Pohlad said he's willing to spend "any amount of money on the current year" but doesn't want to commit himself to seven- or eight-year mega contracts for free agents. He did specifically say that he wouldn't rule out two-, three- and four-year free agent contracts.
• Darren Wolfson of 1500 ESPN tweets that the Twins don't think that recently outrighted Pirates right-hander James McDonald has fully recovered from his shoulder woes, and as such they didn't pursue him when he was designated for assignment. Wolfson adds that the Twins may be interested this offseason if he ends up a free agent.

• The Tigers have a decison looming with Jhonny Peralta, who will return from a 50-game suspension with three games remaining in the regular season, John Lowe of the Detroit Free Press notes. The club may not reinstate Peralta to avoid associated media scrutiny, as the infielder was suspended for his connection with the Biogenesis scandal. However, keeping him on could protect the Tigers in the case of an injury to his replacement at shortstop, Jose Iglesias, or second baseman Omar Infante.
• Though righty James McDonald has finally recovered after hitting the DL with shoulder discomfort in early May, he didn't factor into the Pirates' plans moving forward, Rob Biertempfel of the Pittsburgh Tribune-Review reports in a tweet. McDonald, 28, was designated for assignment earlier today. The former top prospect is only a year removed from a 4.21 ERA, 171-inning campaign and has just a year of arbitration under his belt, so he could draw interest if clubs believe he's healthy.
• The Cubs' Ryan Sweeney figures to get playing time this month so that the club can evaluate him, MLB.com's Carrie Muskat reports. Sweeney will be a free agent after the season. "You give him 500, 700 plate appearances that he’s never gotten before, I think you could project that to be a pretty good year," Cubs manager Dale Sveum said. The 28-year-old signed a minor-league deal with the Cubs in April but missed more than two months after fracturing a rib.

Jeff Todd contributed to this post.

• The Cubs' bullpen has struggled this season, but in the aftermath of this summer's trading season, the team's rotation could end up being just as weak, Gordon Wittenmyer of the Chicago Sun-Times writes. Last season, the Cubs performed poorly down the stretch after the departures of two productive starters in Ryan Dempster and Paul Maholm. This year, Wittenmyer says, Matt Garza and Scott Feldman could be those pitchers' 2013 equivalents.
• Phillies starter Jonathan Pettibone struggled Saturday, but GM Ruben Amaro Jr. says that Carlos Zambrano won't be replacing Pettibone right away, Jim Salisbury of CSNPhilly.com writes. "Not based on what I saw his last outing, not in my mind," says Amaro. "I’d like to see him pitch again [in the minors]. We’ll keep a close eye on his starts and how effective he is. But he’s not ready yet in my mind." Zambrano has an out clause July 1. He allowed two runs in five innings in his first outing for Triple-A Lehigh Valley on Thursday, striking out five and walking four. His fastball did not exceed 88 MPH.
• Speaking of Amaro, Bob Brookover of the Inquirer argues that "the bad has outweighed the good" in Amaro's stint as GM, and that it's unclear whether Amaro is the right person for the job. Amaro's signing of Joe Blanton and trade for Hunter Pence rank among his worst moves, Brookover says.
• Pirates GM Neal Huntington says James McDonald's future with the team could be in jeopardy, the Pittsburgh Tribune-Review's Karen Price writes in a pair of tweets. "As the clock ticks we’ll have to make a determination as to where James best fits in this group, on this club, or does he fit," says Huntington. "That’s a question to be answered ultimately by James McDonald." McDonald, once viewed as a potential franchise building block after promising seasons in 2010 and 2011 and a great first half in 2012, has fallen out of favor after collapsing down the stretch last year and posting a 5.76 ERA with 20 walks in six 2013 starts. He has also struggled in his rehab starts since landing on the disabled list with shoulder discomfort.
• If the Blue Jays had already acquired Jose Reyes and Emilio Bonifacio from the Marlins, they wouldn't have signed Maicer Izturis, Richard Griffin of the Toronto Star argues. Izturis signed a three-year, $10MM deal in November, and the Jays acquired Reyes and Bonifacio days later. Izturis has hit .222/.258/.308 this season.

5:58pm: The Pirates have agreed to new contracts with right-hander James McDonald and second baseman Neil Walker, avoiding arbitration with the two players, MLB.com's Tom Singer reports (Twitter link).  Both players were arb-eligible for the first time and are both are represented by Hendricks Sports. 

McDonald, 28, held a 2.37 ERA through his first 17 starts in 2012 but a 7.52 ERA in his 13 outings and was even sent to the bullpen by season's end.  Since coming to the Pirates from the Dodgers in July 2010, McDonald has a 4.10 ERA, 2.07 K/BB ratio and a 7.8 K/9 rate in 72 games, all but one a start.  McDonald was looking for a $3.4MM salary while the Bucs countered with a $2.65MM offer.

Walker's contract will pay him in the neighborhood of $3.25MM in 2013, as Singer reports (Twitter link) that Walker will get around $300K more than what other arb-eligible second baseman like Daniel Murphy, Gordon Beckham and Ryan Roberts received from their teams.  Walker wanted a $3.6MM deal while the Pirates offered him a $3MM contract, so he should end up with around the midpoint between the two figures.

Like McDonald, Walker also had a roller-coaster of a season, posting a .648 OPS through May, then a .933 OPS over his next 52 games that included a whopping 1.097 OPS in July.  The Pittsburgh native fell off again down the stretch, due in part to a herniated disc in his back.  The Pirates discussed a long-term extension with Walker last offseason and could revisit the subject during Spring Training.  Walker, 27, has three more arb-eligible years left as a Super Two player. 

As MLBTR's Arbitration Tracker shows, the Pirates have now come to terms with all of their arbitration-eligible players.

• The Cardinals, currently tied with the Dodgers for the final NL Wild Card berth, may receive a boost from Chris Carpenter, according to Joe Strauss of the St. Louis Post-Dispatch. Carpenter threw a 90-pitch simulated game yesterday and manager Mike Matheny suggested only a poor recovery from the session could derail his return to the active roster sometime next week. 
• In a separate piece, Strauss suggests the 2013 Cardinals will look remarkably similar to this year's version.
• The Pirates can blame their second-half swoon on their pitching, writes John Perrotto of the Beaver County Times. The Pirates have shaken up their rotation by replacing James McDonald with Kyle McPherson.
• Pirates manager Clint Hurdle told reporters, including the Pittsburgh Tribune-Review's Rob Biertempfel, the team will not be going to a six-man rotation. Hurdle informed Jeff Karstens today management wants to see the right-hander work out of the bullpen before considering putting him back into the rotation.

Though $7MM raises are reserved for elite performers like Kershaw, many first-time eligible starting pitchers will see their salaries rise from $500K or so to $2-4.5MM this coming offseason. A player’s case depends in large part on his career numbers, but his most recent season, or platform year, matters a great deal. 

Advanced statistics like xFIP, wins above replacement and swinging strike rate don't generally figure in to arbitration cases. Instead, traditional stats such as innings, starts, wins and ERA determine players' salaries.

With one third of the season now complete, let’s check in on the prominent starting pitchers on track to be first-time arbitration eligible this coming offseason:

Read more

• While I wondered if the Braves could be a match for the Cardinals as they look for pitching, Ken Rosenthal of FOX Sports suggests that the Rockies could be a match.  A major league source told Rosenthal that the Cards will first explore internal options before looking out-of-house.
• Commissioner Bud Selig has rejected a proposal under which FOX would have loaned about $200MM to Dodgers owner Frank McCourt, three people familiar with the talks told Bill Shaikin of the LA Times.
• Ex-Giant Juan Uribe is happy to be aboard with the Dodgers, writes John Shea of the San Francisco Chronicle.
• Former Dodgers pitcher James McDonald is excited to turn over a new leaf with the Pirates, writes Evan Drellich of MLB.com.  McDonald was shipped to Pittsburgh along with Andrew Lambo for Octavio Dotel last season. 
• Nationals reliever Tyler Clippard says that he will continue to be represented by agent Casey Close, who is leaving CAA Sports, writes MLB.com's Bill Ladson.
• Brewers right-handers Justin James and Shaun Marcum were drafted by Toronto in the same year but took very different paths to wind up in Milwaukee, writes Tom Haudricourt of the Milwaukee Journal-Sentinel.  James claimed off waivers by the Brewers from the A's this offseason.

• If the Pirates make any significant winter moves, Kovacevic thinks "there's a better chance that you'll see money invested in pitching than in offense," both because Pittsburgh has more of a pressing need for quality arms and since finding pitching help could be easier.  Kovacevic notes, however, that GM Neal Huntington needs to work at "upgrading the team's mechanisms for finding real pitching talents."
• Speaking of acquiring pitching, Kovacevic calls the deal that brought James McDonald and Andrew Lambo to Pittsburgh for Octavio Dotel "outstanding."  McDonald has a 3.49 ERA and 2.44 K/BB ratio in eight starts since joining the Bucs.
• The Pirates may be in the market for a right handed-hitting first baseman or right fielder to be a platoon partner for Garrett Jones.  Kovacevic's Post-Gazette colleague Chuck Finder reported over the weekend that the team was no longer looking at Jones as an everyday player.
• Kovacevic believes that Ryan Doumit's starts in right field over the last two months have been intended to showcase Doumit for a potential trade.  Doumit is slated to earn $5.1MM next season, the third-highest salary of any player projected to be on the 2011 roster (behind Chris Snyder and Paul Maholm).   

Jackson lists several starters and relievers whom the Dodgers have shown some degree of interest in: Scott Downs, Jason Frasor, Dan Haren, Ted Lilly, Paul Maholm, Roy Oswalt and Ben Sheets.  Jackson notes that Lilly and Maholm are both around the bottom of Los Angeles' wish list, and he notes the major payroll increases that would be necessary if Oswalt or Haren were acquired.  Given McCourt's ongoing financial issues stemming from his divorce, it's safe to presume that whatever payroll increase the owner agrees to might be a short-term one for the rest of this season, rather than a multi-year commitment to a Haren or an Oswalt.

In terms of what prospects the Dodgers would have to give up to acquire any of these pitchers, Jackson says that shortstop Dee Gordon and righties Ethan Martin and Chris Withrow (the top position and pitching prospects, respectively, in the L.A. system) "are unlikely" to be dealt.  Aaron Miller, however, is singled out as being "a hot commodity" apart from some other minor-leaguers that are attracting the interest of other teams.  Miller, a southpaw taken 36th overall in the 2009 amateur draft, has a 3.10 ERA and a 9.9 K/9 ratio in just over a year as a professional and is currently pitching at Double-A. 

While GM Ned Colletti says that "pitching continues to be our priority," he also noted that the Dodgers might look to acquire an outfielder in the wake of injuries to Manny Ramirez and Reed Johnson.  Fanhouse.com's Ed Price reports (via Twitter) that the Rays have "some interest" in Dodgers right-hander James McDonald and speculates that B.J. Upton could be a potential trade target if Los Angeles really wants to make a splash in its outfield.  Obviously, given that the Rays have said that they aren't "selling low" on Upton, L.A. would need to add much more than just McDonald to the trade package.

Eric Stults and Charlie Haeger are both out of options, Carlos Monasterios is a Rule 5 pick, and both Ramon and Russ Ortiz are believed to have out clauses in their contracts. The one rotation candidate that doesn't have any strings attached is James McDonald, but it doesn't help that he has a 20.25 ERA and a 3.56 WHIP in just over five innings this spring. Regardless of who LA picks for that last spot, there's a chance they'll lose some depth as the other guys succumb to roster limitations.

Let's open this one up for discussion. Who do you think the Dodgers should put in their last rotation spot, and what should they do with the other players? Essentially your choices are a) put them in the bullpen, or b) risk losing them to waivers/out clause/Rule 5 rules. Here are the Spring Training stats, not that they mean anything. 

• Via Twitter, Jon Heyman of SI.com reports that the Padres almost dealt Heath Bell and Adrian Gonzalez to the Dodgers for James Loney, Russell Martin, Blake DeWitt, James McDonald and Ivan Dejesus. Wow.
• Danny Knobler of CBS Sports confirms that the division rivals considered a blockbuster deal involving those players.
• Knobler also says the Rangers and Angels both pursued Heath Bell aggressively this afternoon. The Angels and Padres were discussing Jose Arredondo, Sean O'Sullivan and Sean Rodriguez. 
• Brewers GM Doug Melvin says his team was involved in a "big one that didn't happen," according to Tom Haudricourt of the Milwaukee Journal Sentinel.
• The Crew also had interest in Jarrod Washburn and Brian Bannister.
• Melvin says everyone asked the Brewers for Mat Gamel and Alcides Escobar. Since the Brewers didn't want to deal either prospect and don't have the young pitching to offer rival teams, they had limited options.

4:23pm: Jack Curry of the New York Times has additional comments from Ricciardi on Halladay:

"We've got nothing going on.  We expect him to be with us."

The Phillies are out, and the other suitors failed to wow Ricciardi.

3:19pm: Rosenthal and Morosi say the Dodgers have enough in their system to make a competitive offer for Halladay, even after acquiring Sherrill.  And for Evan Grant's thoughts on the Rangers and Halladay, click here.

However, in another entry Rosenthal and Morosi talk to J.P. Ricciardi and label the Halladay sweepstakes "all but over."  Ricciardi's comments indicate the same.  Toronto's GM seems intent on keeping Scott Rolen, Marco Scutaro, and others if Doc stays.

2:23pm: Morosi says Halladay is looking unlikely for the Angels, who shot down a Toronto proposal that included Joe Saunders, Erick Aybar, and Brandon Wood. 

The Halos are also looking for bullpen help, with names such as Heath Bell and George Sherrill in play (their offer for Mike Wuertz fell short).

1:26pm: Rosenthal and Morosi have a source saying things are "very quiet" on the Halladay front.  Still, the Dodgers, Angels, Rangers, Rays, and Red Sox remain interested.

1:14pm: Yahoo's Tim Brown sees the Dodgers and Red Sox as the frontrunners for Doc in what is shaping up as a two-team race.  Brown says the only Major Leaguer in the Dodgers' offer is James McDonald, while the Sox will part with Clay Buchholz, one of Justin Masterson, Michael Bowden, and Lars Anderson, and some lesser prospects.  My guess is that the Red Sox find a way to get this done, given the quality they're already offering.  ESPN's Jayson Stark says one Dodgers prospect who is off-limits is shortstop Devaris Gordon.

Meanwhile, Lynn Henning of the Detroit News says the Jays wanted Rick Porcello, Ryan Perry, and Casey Crosby from the Tigers for Halladay.  Henning says the Tigers bowed out upon that request.  Henning adds that the Tigers would consider adding Adam Dunn or Josh Willingham but the price is steep on the sluggers as well.

12:59pm: A Rosenthal/Morosi source with knowledge of the Jays' thinking discusses a package of Dodgers minor leaguers that could catch Toronto's attention in a Halladay deal.

12:21pm: Joe McDonald of the Providence Journal sees the Dodgers in the lead for Halladay, with the Rangers in the mix and talks with Boston calming down.

9:09am: Tony Massarotti of the Boston Globe feels the chances of the Red Sox acquiring Halladay are "remote," and believes that Boston has yet to increase their initial offer for him.  And in an earlier column, Sean McAdam of the Boston Herald said the Blue Jays and Red Sox have not been in contact over the last three days.

8:37am: SI's Jon Heyman says the Dodgers balked at the Blue Jays' asking price for Halladay and are moving on to Orioles closer George Sherrill.  Check out yesterday's Sherrill info here.

Meanwhile, Bob Elliott of the Toronto Sun finds Halladay unlikely to be traded.  ESPN's Buster Olney says there are "no active talks" at present.

7:55am: We'll start with a review of yesterday's Roy Halladay rumors.  The Phillies acquired Cliff Lee instead, cutting into J.P. Ricciardi's leverage for Doc.  Ricciardi now has the Red Sox, Yankees, Rangers, Dodgers, and possibly Angels and Rays to work with.  The Blue Jays' GM is thinking about keeping Halladay for 2010, based on his comments to Joel Sherman of the New York Post.  On to a few new links…

• Ken Rosenthal and Jon Paul Morosi at FOX Sports say the Jays are not requiring the Dodgers to include Clayton Kershaw or Chad Billingsley.  Instead, they'd just take five or six of the team's top prospects.
• Mark Feinsand and Bill Madden of the New York Daily News say Ricciardi is trying to get the Yankees and Red Sox into a bidding war.  Kind of cliche, J.P.  The authors imply the Yanks may be more focused Jarrod Washburn, who obviously wouldn't require as big a bounty.
• Halladay's plan for today, according to Jim Salisbury of the Philadelphia Inquirer – lock himself in his hotel room.  Might want to unplug the TV and disable the Internet.  Doc is understandably drained from pitching last night amid all the rumors.