Yankees avoided arbitration with RHP Shawn Kelley by agreeing to a one-year, $1.765 million contract. Kelley, who was arbitration-eligible for the third of four times, can earn $25,000 more if he appears in 55 games. He made 57 appearances for the Yankees last season, putting up a 4.39 ERA but striking out 71 across 53 1/3 frames.