The White Sox didn't exercise that option, as they made a different move: They signed Peavy to a two-year, $29 million extension, making the already-sparse starting pitching market a little more sparse. It looks like one of those win-win moves: The White Sox get Peavy for a more cost-effective $33 million (including the $4 million buyout of his existing contract) and Peavy stays in a place where he wanted to play.
The White Sox also announced that they declined options on Kevin Youkilis and Brett Myers while picking up the $9.5 million option on Gavin Floyd, giving the White Sox a 2013 rotation of Chris Sale, Peavy, Floyd, John Danks and Jose Quintana or Philip Humber. Even with Danks making just nine starts due to surgery to repair a tendon tear (he's expected to be ready for spring training), the White Sox finished with a 4.15 ERA from their rotation, seventh-best in the American League but a solid figure considering U.S. Cellular Park is one of the best hitting parks in the league.
Peavy was a big reason the White Sox battled the Detroit Tigers for the AL Central title, the right-hander going 11-12 with a 3.37 ERA that ranked ninth in the AL. He also ranked fifth in innings pitched, helping give him 5.0 WAR, sixth-best among AL pitchers. The caveat: It was the first time he topped 200 innings since 2007 and the first season since 2008 he surpassed even 112 innings. His long medical history certainly suggests this isn't a risk-free deal for the White Sox.
The surgery he had in 2010 to reattach a tendon in his shoulder was the first time the surgery had been performed on a baseball player, but Peavy told ESPNChicago.com during the 2012 season that he was a different pitcher than in recent seasons, "worrying about game planning, not sitting in the trainer's room the whole time in between days."
If Peavy and Danks can stay healthy, it's certainly a rotation that can contend for a division title. Next up for the White Sox: Possibly re-signing Youkilis and free-agent catcher A.J. Pierzynski, who hit .278 with 27 home runs in 2012.