Milton surprises, signs with Reds

The Yankees came calling on Eric Milton, willing to peel some bills out of their bulging money clip. The big-budget Red Sox and Dodgers also were interested in adding the left-hander to their playoff-caliber clubs.

In the end, he made a surprising choice: the late-arriving, small-market Cincinnati Reds.

Milton agreed to a $25.5 million, three-year deal on Monday with a team that was late into the bidding and seemed an unlikely match for a pitcher who yearns to get back to the playoffs.

“I wouldn’t be sitting here today if I didn’t think we have a real chance of winning,” Milton said.

The Reds think so, too, and were willing to structure his contract so he can leave if they don’t win during his first two seasons. Milton got a $4 million signing bonus and base salaries of $4 million in 2005, $8.5 million in 2006 and $9 million in 2007, matching the total value of Matt Clement’s deal with Boston.

After the 2006 season, Milton has the option of staying for the final year of the deal or going somewhere else.

Yankees, Red Sox, Angels must pay

The Boston Red Sox got an extra bill after winning the World Series.

Boston and Anaheim must pay baseball’s luxury tax along with the New York Yankees, according to final figures compiled by the commissioner’s office.

The Yankees are required to pay $25,026,352, according to a Dec. 21 memorandum that was sent to all major league teams. Boston owes $3,155,234 for exceeding the payroll threshold of $120.5 million and Anaheim got a bill for $927,059.

Checks for the tax are due at the commissioner’s office by Jan. 31.

Clearing the bases

The Chicago Cubs agreed to a one-year deal with outfielder Todd Hollandsworth, avoiding arbitration. … Trevor Hoffman of the San Diego Padres won the Hutch Award for a season in which he re-established himself as one of baseball’s top closers. The Hutch Award honors courage and dedication to baseball on and off the field. It was created in 1965 and named for Fred Hutchinson, who died of cancer at 45. Hutchinson managed Cincinnati to a World Series title in 1961. … The San Francisco Giants finalized a two-year, $13.25 million contract with Moises Alou. … Eddie Layton, the Yankee Stadium organist and ballpark fixture for more than 35 years, has died after a brief illness. Layton died Sunday, the New York Yankees said. The team did not know his age.