Yankees’ payroll hits $178 million

CC Sabathia’s $10 million, one-year contract has been finalized by the Yankees, a deal that raises New York’s projected luxury-tax payroll for next year to about $178 million.

The deal was announced Tuesday, about 10 days after the sides reached an agreement pending a physical. The 37year-old left-hander is taking a pay cut from the $25 million he earned this year, when he went 14-5 with a 3.69 ERA in 27 starts for his best season since 2012. He was 9-0 with a 1.71 ERA in 10 starts following a New York loss.

Sabathia needs periodic injections in his surgically repaired right knee. The sixtime All-Star is part of a rotation that has Luis Severino, Masahiro Tanaka, Sonny Gray and Jordan Montgomery.

Sabathia is 237-146 with a 3.70 ERA and 2,846 strikeouts in 17 big-league seasons with Cleveland (2001-08), Milwaukee (2008) and the Yankees, who first signed him to a $161 million, seven-year deal in 2009. When the Vallejo native had the right to opt out after the 2011 season, the Yankees agreed to a deal that paid him $25 million in 2016 and included a $25 million option for 2017 that became guaranteed because he did not finish 2016 with a left shoulder injury.

Yankees owner Hal Steinbrenner repeatedly has said New York intends to get under next year’s tax threshold of $197 million, which would reset the team’s base tax rate from 50 percent to 20 percent in 2019, the first season after Bryce Harper and Manny Machado are free agents. Reds sign reliever: Jared Hughes and Cincinnati agreed to a $4.5 million, two-year contract that includes a club option for 2020.

Hughes, 32, gets $2,125,000 in each of the next two seasons under the deal announced Tuesday, and the Reds have a $3 million option with a $250,000 buyout.

Hughes went 5-3 with a 3.02 ERA for Milwaukee last season with one save in 67 games. Duke to Twins: Left-hander Zach Duke and Minnesota finalized a one-year contract. The 34-year-old was 1-1 with a 3.93 ERA in 27 relief appearances this year for St. Louis.