On February 9, 2012, Gordon signed a one-year, $4.775 million deal with the Royals to avoid arbitration. In the process, Gordon filed for $5.45, while the Royals countered with $4.15. Under the Royals' agreement, he could have earned an additional $25K if he had reached 700 plate appearances, putting him at the original midpoint. However, on March 30, he signed a four-year, $37.5 million extension with the Royals with a player option for 2016. Gordon earned $6 million in 2012, $9 million in 2013, $10 million in 2014 and $12.5 million in 2015, but declined to exercise his player option of $12.5 million for 2016. Gordon would otherwise have become a free agent after 2013.