Shortstop Gunnar Henderson was set for arbitration this offseason. However, it appears that this will be completely avoided after the Baltimore Orioles decided to give him a new contract instead.

Reports indicate that Henderson, who is 24 years old, is signing an $8.5 million deal to avoid arbitration, according to Andy Kostka of the Baltimore Banner. The new contract keeps the 2023 AL Rookie of the Year with the Orioles through the 2026 campaign, and he will likely have to renegotiate a new deal this time next year.

“Gunnar Henderson has avoided arbitration with the Orioles by agreeing to an $8.5 million deal, per sources.”

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Despite only being in MLB for four years, Henderson has quickly emerged as one of the best shortstops in the league. He's also been incredibly durable, playing in 150 games or more in three consecutive years. Gunnar Henderson ended the 2025 campaign with a .274 batting average and .349 OBP while recording 158 hits, 17 home runs, and 68 RBIs.

The previous season was a little bit of a step back compared to his 2024 year, which saw Henderson be named an All-Star. However, considering his youth, along with the Orioles' strong farm system, there is hope Baltimore can bounce back in a big way in 2026. Especially if Gunnar Henderson takes another step in development.

So far this offseason, the front office has made some aggressive moves. Outside of signing Henderson to an $8.5 million contract, the Orioles also managed to trade for Shane Baz with the Tampa Bay Rays to improve the starting rotation. More roster moves could be made before the start of spring training in late February.