Hughes, who will turn 27 this June, had a 4.23 ERA, a 7.8 K/9 and a 2.2 BB/9 in 191.1 innings last season. If you discount his poor start though his numbers were much better as he posted a 3.82 ERA from May 6 on. Home runs plagued him throughout the year as he allowed 35 in 32 games. A pitcher with just a 33.4 ground ball percentage will do that in Yankee Stadium though.
MLBTradeRumors projected Hughes to make just $5.7 million in arbitration after he earned $3.2 million last season. So getting $7.15 million out of the Yankees is a great deal for him and probably a bit of an overpay by the Yankees. Hughes will be a free agent after this year and there are no indications that they explored a contract extension with him.