The average annual value of Vargas' deal ($8 million) is actually pretty reasonable for a pitcher of his stature and experience and less than the $8.5 million Vargas made last season with the Angels.
The Angels, according to a person familiar with the negotiations, offered Vargas a three-year deal for about $24 million, but they were not willing to go to four years. Vargas was acquired from Seattle for slugger
"I think the biggest thing for me was being able to be in a place where I knew I was going to be for a significant amount of time, and with an organization that I felt comfortable, that I believed in what they're doing and how they're continuing to get better," Vargas said. "Kansas City was definitely at the top of that list going into the off-season, and now they're at the top."
The 30-year-old Vargas, who pitched at Long Beach State, has a 51-58 career record and 4.30 earned-run average in 174 games over eight seasons. He went 9-8 with a 4.02 ERA in 2013, a season in which he missed almost two months because of a blood clot that was surgically removed from his left armpit.
The Angels, who are already pushing up against the $189-million luxury tax threshold, did not make a $14.1-million qualifying offer to Vargas, so they will not receive any draft-pick compensation for losing him.
They are casting a wide net in trade talks in hopes of acquiring younger, cost-controlled starting pitchers, and they have expressed an interest in veteran free-agent right-hander