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Contract Extension Newsbeat

Wednesday, April 03, 2019

Ronald Acuña Jr.’s New Contract is Staggering

It isn’t hard to justify a player’s reasoning for signing a long-term extension. It isn’t hard to justify Ronald Acuña Jr. wanting to secure his future. In 2014, the Braves phenom received a signing bonus of $100,000 and then spent the next three and a half years making almost nothing. Last season, he made a bit more than half a million dollars. He was set to do the same this season and next before finally cashing in to the tune of somewhere between four and eight million dollars, unless he manages to win an MVP award, in which case it would bump him up closer to $10 million. Earning just over $1 million for his six years after signing as a professional baseball player isn’t nothing, but it’s also not $100 million, and per Jeff Passan, Ronald Acuña Jr. appears set to sign a contract for a guaranteed $100 million over potentially the next 10 years of his professional baseball life. It’s a lot of money, but it also might be the biggest bargain of a contract since Mike Trout’s six-year, $149.5-million contract signed in 2014 or Albert Pujols‘ eight-year, $100-million contract signed in 2004.

Acuña isn’t on the level of Trout or Pujols, and odds are he never will be, but he is already a very good player. Our Depth Chart projections have Acuña as a four-win player today at 21 years old, sitting right next to J.D. Martinez, Javier Baez, Joey Votto, and Matt Carpenter. Dan Szymborski ran the ZiPS projections for Acuña’s next eight seasons; he averaged about four and a half wins per season, putting him right in line with expectations for Freddie Freeman and Anthony Rendon this year. Acuña is already one of the game’s better players, and his age should keep him at that level for the next decade before he declines, so he gave away potentially four free agent seasons and arguably his entire prime for a fraction of what he might have earned otherwise.

There are two paths to walk down when it comes to putting this contract in perspective. The first is to compare the deal to the one just signed by Eloy Jimenez. The White Sox prospect was guaranteed $43 million over the next six seasons despite never playing a day in the majors. If things break well for him and the White Sox, he will make $77 million over the next eight years and give up one free agent season. Acuña, who has already played a season in the majors and performed really well, will make just $90 million over the next eight seasons if things break right and will have given up two free agent seasons. Then it gets worse for Acuña, because $10 million of that $100 million guarantee is a buyout of a $17 million option for a ninth season followed by another option for $17 million. Those option prices are incredibly small when free agents or free-agents-to-be like Manny Machado and Nolan Arenado are making twice that today, not to mention what salaries might be like eight years from now. According to Passan, the most Acuña could make over the next 10 seasons is $124 million.

Some thoughts on the most recent of the major contract extensions.

QLE Posted: April 03, 2019 at 03:18 AM | 60 comment(s)
  Beats: contract extension, ronald acuna

Monday, March 25, 2019

Red Sox sign Sale to 5-year, $145M extension

Left-hander Chris Sale has signed a five-year contract extension with the Boston Red Sox, team president Dave Dombrowski announced Saturday.

The five-year deal is worth $145 million, league sources told ESPN’s Jeff Passan, and includes an opt-out after three years, a vesting sixth-year option based on stats worth at least $20 million and a no-trade clause beginning in the middle of the 2020 season.

The deal adds to Sale’s current contract (one year remaining) and will go through the 2024 season, with Sale making $30 million annually in the first three seasons and $27.5 million annually in the final two, league sources told Passan.

By popular demand!

 

QLE Posted: March 25, 2019 at 10:26 AM | 34 comment(s)
  Beats: chris sale, contract extension, red sox

 

 

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