The Angels have agreed to terms with Raul Ibanez on a one-year contract to be their designated hitter.
The contract would guarantee Ibanez $2.75 million, with incentive bonuses that could make the deal worth $5 million. Ibanez would earn all the bonuses if he remains in the lineup all season.
The signing would leave the Angels with one major item on their off-season shopping list: a veteran starting pitcher. The team appears to have about $13 million to $15 million under the luxury-tax limit — incentive payments count toward a luxury-tax bill — which should allow them to be competitive in bidding for Matt Garza and Masahiro Tanaka, assuming Tanaka becomes available.
The Garza and Tanaka markets would not necessarily overlap. If Tanaka's Japanese club agrees to release him, major league clubs would have 30 days to bid for him, which would extend the process deep into January. Garza is prepared to reach a deal before the Tanaka situation resolves itself.