According to Jon Heyman of SI.com, the Twins recently offered Johan Santana a two-year extension for $36MM plus a club option for 2011. I know you have to start somewhere with negotiations, but the Twins could essentially double their offer and it would still be well below market value.
Heyman mentions that Santana has informed the Twins that he won’t negotiate again until he hits the open market after the 2008 season. Maybe Santana made that assertion because he felt insulted by the team’s lowball offer.
If the Twins are that far apart from an extension with Santana, they might want to consider trading him sometime between now and July 31st, 2008. Don’t forget, however, that Santana has a full no-trade clause this year and a good shot at one for ’08.
Some have suggested that Santana will become baseball’s first $200MM pitcher; clearly a deal won’t get done with less than $100MM being committed. People keep reporting that Santana will become a free agent at age 29, which is technically true, but he will be 30 on Opening Day 2009.
UPDATE: Not so fast, said Santana today. He says he hasn’t received an offer from the Twins, but the sooner the better if the Twins want to break their "no negotiations in-season policy." A report four days ago indicated the Twins will ignore that policy for Santana.