The Reds will likely offer a contract extension in the offseason to Bailey, who will be a free agent after the 2014 season. However, he has not shown much interest in signing with Cincinnati before hitting free agency. He made $5.35 million in 2013 while posting a 3.49 ERA with 181 strikeouts over 32 starts.
Cincinnati may opt to trade Bailey this offseason due to his cost and the possibility of him leaving in free agency. That would allow the team to at least see something in return besides just a compensation pick.
A trade would open a hole in the rotation, as Tony Cingrani is already expected to fill in for free agent Bronson Arroyo. Daniel Corcino was the only other pitching prospect the Reds had in the upper levels of the minors, and he had a dreadful year in Triple-A. Greg Reynolds and Pedro Villarreal also started major league games in 2013, but neither is likely to be a viable option to start full time in 2014.
Due to this lack of starting depth in the Reds rotation, the team would likely seek major-league ready pitching in return for Bailey if they do, in fact, attempt to trade him.