The deal includes a $50,000 bonus if Crow is an All-Star, which he was in 2011. Crow had asked for $1.7 million and the Royals offered the same $1.28 million he made last year.
Crow went 7-5 with a 3.38 ERA in 57 games last season. The former first-round pick is 14-10 with a 3.19 ERA in his three-year career.
Holland, coming off his first All-Star appearance, asked for $5.2 million and the Royals offered $4.1 million. He made $539,000 last year, when he was 2-1 with a 1.21 ERA and 47 saves. Arbitration hearings begin this weekend and run through Feb. 21.