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Transaction Oracle— A Timely Look at Transactions as They Happen
Tuesday, November 01, 2011
Yankees - Signed Sabathia
New York Yankees - Signed P C.C. Sabathia to a 6-year, $142 million contract.
Well that was something of a letdown. I think most of us were poised
for a lot of posturing and a lengthy negotiation that in the end would
see CC re-signing with the Yankees.
Did he leave anything on the table either in terms of length of
contract or dollar per year? Could be, but I’m skeptical that he left
a lot. In effect he signed for 5 years at $117 million (but with a
potential $5 million buyout at the end) and Cliff Lee got $120
million. That’s a sensible baseline for Sabathia’s value on the free
market. Yes, it’s reported that Lee didn’t take the highest offer, but
that’s still a pretty fair estimate of what the Yankees would be
competing against.
In the end he got an extra year at very nice money and an off-season
free of angst. Plenty of people would see that as a worthwhile trade,
particularly as there’s no guarantee that he would have done better on
the open market. I’m sure CC is as aware as anybody of the fact that
his size is a potential issue to some people. To be clear, I’m not
among them. I can think of a few really big pitchers who had knee
problems (probably) related to their size, but really all pitchers are
a risk and the size issue is a minor one as best I can tell.
Ron Johnson
Posted: November 01, 2011 at 03:23 PM | 15 comment(s)
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1. Infinite Joost (Voxter)I thought that the Yankees had actually offered Lee more total money, but the Phillies offered a higher AAV, just a shorter contract? In other words, Lee did take the highest offer, if you define that as highest yearly salary.
I think it's easy to overlook the importance of this kind of thing. He's in the city he wants to be in. He's making a ton of cash. And now his mind is clear until the spring.
Unless reports are wrong, no they did not!
This is not how baseball contracts are reported.
CC signed for 5/$122. The 4/$92 of the original contract, a 1/$25 extension and a 1/$25 vesting option with a $5 M buyout.
Baseball contract reporting has never included option years in the contract total, only the guaranteed amount and it would be bad to change that. The guaranteed portion of CC's contract is 5/$122. That is what he signed for.
And I don't care how likely it is for that option to vest, it's an option. Lee's contract also has a vesting option of $27.5 M (with a whopping $12.5 M buyout which is part of the $120 M) and so can surpass 5/$120 as well.
And note the "importance" of that 5/$122 number ... it's $2 M more than Lee got. CC wins by even more if both options vest (6/142 vs 6/135). This contract is for slightly more than what Lee got, not slightly less.
I think Walt's point of also including the $5M buyout since it's guaranteed is ok, but then the clarity of the option year gets a little lost to me. Because here Walt includes the 5M buyout in the 5/122, but then lists the 5M buyout again later:
CC signed for 5/$122. The 4/$92 of the original contract, a 1/$25 extension and a 1/$25 vesting option with a $5 M buyout.
For comparison sake, here is how Cot's reports the Cliff Lee deal. Basically the same as Walt does it:
Hmmm ... Cots hasn't updated yet, they're usually right on top of this stuff.
This is in contrast to football where it's always reported as 8/$80. Go figure.
At one level it doesn't matter but it makes it a lot easier to compare contracts on a consistent basis.
Anyway ... welcome Ron!
Dan said he was still going to provide the ZiPs. Maybe he didn't b/c the Yankees ZiPs are out already?
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