Red Sox Agree To Terms With Baldelli, Smoltz

7:00pm: Smoltz signed the offer sheet from the Red Sox, says Buster Olney.  Olney’s story has contract details as well.   There’s also an interesting quote from Theo Epstein:

"I think you’ll see us now turn to players who we can take chances on, players who represent potential impact players.  We still have some things going on."

2:31pm: Gordon Edes provides details on the Braves’ offer to Smoltz:

The Braves would have paid Smoltz incrementally based on his health up to a maximum of $5 million if he remained on the major league roster for 60 days, and the guarantee was for no more than $3 million. The offer also included another $5 million in performance bonuses and $2 million in additional incentives. So Smoltz could have earned up to $12 million by staying healthy and pitching extremely well.

1:55pm: David O’Brien says the Braves would not exceed $3MM guaranteed for Smoltz.  Braves CEO Terry McGuirk is "shocked and surprised" by his decision.  Buster Olney says Smoltz is set to sign Boston’s offer sheet and was perturbed by McGuirk’s comments.  In a statement, Smoltz said there were "large discrepancies" between the offers.

11:39am: Chad Finn of the Boston Globe sums up the reports: the Red Sox announced an agreement with Rocco Baldelli on a one-year deal and the AP says their one-year deal with John Smoltz will be finalized today.  Both players are pretty much luxuries for the Sox, but they had money to burn.  I never would’ve predicted Smoltz and Trevor Hoffman would be wearing new uniforms in 2009.

Baldelli’s deal has a $500K base with $1.75MM in roster bonuses and $5.25MM in performance bonuses.  The Phillies, Reds, Pirates, and Orioles were in on him.  Smoltz gets $5MM guaranteed with another possible $5MM in bonuses.

WEEI’s Alex Speier looks at Boston’s successful history of buying low, and the station also notes that Brad Penny’s physical is scheduled for today.