Kansas City, Mo. ? The Royals and closer Greg Holland avoided salary arbitration Friday when they agreed to an $8.25 million, one-year contract shortly before their hearing, and Kansas City gave free agent right-hander Joe Blanton a minor-league deal.

Holland would receive a $100,000 assignment bonus if he is traded — a possibility given the number of pricy power arms in the back of the Royals bullpen.

The 29-year-old right-hander had 46 saves and a 1.44 ERA for the AL champions, striking out 90 and walking 20 in 62 1-3 innings. Holland had seven saves and a 0.82 ERA in the postseason, helping the Royals reach Game 7 of the World Series before losing to San Francisco.

His agreement came one day after the Royals reached a $4.15 million, two-year deal with Kelvin Herrera, who primarily handles the seventh inning. Kansas City also exercised its $7 million option on setup man Wade Davis, which means its shutdown bullpen is slated to return intact.

When combined with a $10 million, two-year deal for reliever Luke Hochevar, who is coming off Tommy John surgery, the Royals have committed more than $21 million to four relief pitchers.