The contract also includes a $13 million team option for 2019 with a $2 million buyout.
Gallardo, a Mexican native who went to high school at Trimble Technical in Fort Worth, was traded to the Rangers before the 2015 season.
Gallardo went 13-11 with a 3.42 ERA in 33 starts in 2015.
The righty has a 102-75 record and 3.66 ERA in 247 career outings, including 244 starts.
However, Gallardo comes with a few red flags.
Last season was Gallardo’s first in Texas as he spent the first eight seasons of his pro career with the Milwaukee Brewers. It’s likely either Chris Tillman or Gallardo would be considered the ace to begin the season with Ubaldo Jimenez, Kevin Gausman and Miguel Gonzalez look to round things out at the beginning of 2016.
As a result of signing Gallardo, who declined a qualifying offer from Texas, the Orioles must surrender the 14th overall pick in this June’s amateur draft.
Scott & Jeremy kick off this weeks episode talking about the possibility of signing free agents Yovani Gallardo and Dexter Fowler.
Texas Rangers’ Yovani Gallardo arrives for a baseball practice in…
According to Heyman and others, the contract will cover three years with $35 million guaranteed to Gallardo, with some money deferred from the contract term. Dan Szymborski expressed his concern, “When you are giving up a first round draft pick you also want to make sure you’re giving it up for a player that can make a real difference”.