What It Means:

The Orioles would have to sacrifice the No. 14 overall pick in order to sign Gallardo, which is something the club has been hesitant to do. It's possible the free agent's price has dropped to the point where the Orioles are willing to lose the pick in order to get the deal done. A contract for three guaranteed years, with a possible opt-out clause included, is what MLB Network's Jon Heyman is hearing could be offered.

Gallardo posted a career best 3.42 ERA in 184 1/3 innings with the Texas Rangers last season. However, his 4.31 xFIP not only suggests his ERA should have been higher, but it was the worst xFIP of his career. He also recorded a career low 15.3 strikeout percentage (league average is 20.4), and that number has dropped every year since 2010.