The first order of business for new Chicago White Sox general manager Rick Hahn was to retain a key piece of the team's rotation.
The White Sox and right-hander Jake Peavy agreed to a two-year, $29 million deal Tuesday. The team previously announced it was declining a $22 million option on Peavy for the 2013 season.
The Chicago Tribune and Chicago Sun-Times both reported that Peavy will make $14.5 million in 2013 and 2014.
Hahn also announced Tuesday that the White Sox picked up the contract option of right-hander Gavin Floyd, and that they declined contract options on right-hander Brett Myers and third baseman Kevin Youkilis.
Peavy finished 11-12 with a 3.37 ERA in 32 starts this year.
Peavy, 31, was a two-time All-Star with the San Diego Padres early in his career. He won the 2007 National League Cy Young Award for San Diego when he went 19-6 with a league-low 2.54 ERA. He also won the NL's ERA crown in 2004 with a 2.27 mark.
On July 31, 2009, San Diego traded Peavy to Chicago for four pitchers, most notably left-hander Clayton Richard. Peavy made three starts for the White Sox that year, going 3-0 with a 1.35 ERA, but ever since he gone through periods of ineffectiveness and injury, including shoulder surgery in 2010.
Over the past three seasons, Peavy has gone 25-25 with a 4.07 ERA while averaging fewer than 22 starts per year.
Floyd, 29, will make $9.5 million in 2013. He went 12-11 with a 4.29 ERA in 29 starts this year.
Myers, 32, receives a $3 million buyout rather than a $10 million salary for 2013. He began the year as the Houston Astros' closer, and he saved 19 games in 21 opportunities. Myers was dealt to the White Sox in July for three minor-leaguers, and he finished the season as a middle reliever in Chicago. Overall, he went 3-8 with a 3.31 ERA in 70 appearances this year.
Youkilis, 33, gets a $1 million buyout instead of a $13 million salary for next year. In the midst of a disappointing season, he was acquired from the Boston Red Sox in June in exchange for utility man Brent Lillibridge and right-hander Zach Stewart. Youkilis hit a combined .235 with a .336 on-base percentage, 19 homers and 60 RBI in 122 games in 2012.