Posted by Bill Baer on Friday, August 7, 2009 at 1:40 pm

The Minnesota Twins picked up right-handed starting pitcher Carl Pavano from the Cleveland Indians for a player to be named later. He has about a half-million remaining on his $1.5 million salary for the 2009 season, but according to Cot’s Contracts, he can make $5.3 million in performance incentives:

• Starts: $0.1M each for 18, 20, 22; $0.2M each for 24, 26, 28; $0.25M for 30; $0.3M for 32; $0.35M each for 33, 34; $0.4M for 35
• Innings: $0.1M each for 130, 140, 150; $0.15M each for 160, 170; $0.2M for 180; $0.25M each for 190, 200, 210; $0.3M for 215; $0.4M for 225; $0.5M for 235

Pavano already has nearly 126 innings and has made 21 starts. It’s quite possible that he reaches 33 starts and 200 innings, meaning he would be owed another $1.55 million for the starts and $1.3 million for the starts for a total of $1.85 million.

FanGraphs values Pavano as a pitcher who has been two wins above replacement level, worth $9 million, or about $4.5 million for each of the first two-thirds of the season. If he can replicate that production for the last one-third, his $4.5 million value less his actual $2.35 million salary would theoretically save the Twins $2.15 million.

In short, not a bad move for the Twins at all who have a slightly below-average pitching staff.

Elsewhere, the New York Yankees picked up Chad Gaudin off of waivers from the San Diego Padres. Because the Chicago Cubs released him way back in April, the only salary the Yankees are responsible is the prorated league minimum as MLB Trade Rumors points out. MLBTR also notes that Gaudin will be inserted into the Yankees’ bullpen despite being used as a starter by the Padres.

Gaudin has been ineffective as a starter this season with a 5.13 ERA in over 105 innings. Last season as a reliever with the Oakland Athletics, Gaudin thrived, posting a 3.59 ERA in nearly 63 innings. However, when he was shipped to Chicago, he did not enjoy nearly as much success with a 6.26 ERA in over 27 innings for the Cubs.