Watson agreed to a one-year, $1.75 million contract with the Pirates on Friday, avoiding arbitration, Tom Singer of MLB.com reports. Watson seamlessly transitioned into the eighth-inning role after Mark Melancon took over as the Pirates' closer for good in June, finishing with a 1.63 ERA, 1.02 WHIP and 34 holds, second most in all of baseball. He'll receive a nice raise in salary in his first year arbitration, and will likely be among the first five setup men off the board in deeper mixed drafts this spring.