Clay's lack of success at the major league level is often cited as the catalyst for Yankees owner George Steinbrenner's desire to build his team through free agency and trades rather than relying upon his own farm system.

Most recently, he was sentenced to five years in jail for grand theft for creating a fake sales order at the Sarasota, Florida copy machine office in which he worked.

Clay joined a team that was tied for first place in the American League East, and eventually won the division by 2.5 games over the Baltimore Orioles and Boston Red Sox.

On June 17, the Yankees' starting pitcher, Catfish Hunter, gave up four first-inning home runs against the Red Sox at Fenway Park.

Heading into spring training of the 1978 season, Clay was one of the top young pitching prospects hoping to earn a spot on the Yankees' Opening Day roster, along with Jim Beattie and Gil Patterson.

[7] Likewise, reliever Sparky Lyle, who had won the American League Cy Young Award in 1977, also offered advice to Clay about his tendency to wear his arm out in practice and thus not being at full strength for the day's game.

The Yankees were leading 4-0 when Clay was called into the first game of the American League Championship Series against the Royals in the sixth inning with one out and the bases loaded.

[14] Clay began the 1981 season in Seattle's starting rotation, but after going 0–3 with an ERA of 7.03, Mariners manager Maury Wills moved him to the bullpen.

He faced up to twenty years in prison on four counts of grand larceny for stealing $30,000 from Jostens Inc., a school ring company for whom he worked.

Instead, he paid $15,000 restitution to Jostens plus $1,394.64 in court fees, got 1,000 hours of community service, five years supervised probation and a suspended sentence.

While serving his time, it was discovered that Clay withheld information about three previous arrests (the grand larceny and two DUIs) from his probation officers.

Clay agreed to pay back creditors, and Manatee County Circuit Judge Charles Williams sentenced him to fifteen years of probation.