It didn't take long for Rick Hahn to make his first move as the general manager of the White Sox. Four days after officially introducing Hahn as GM, the team announced a two-year, $29MM contract extension with Jake Peavy. The deal will keep Peavy in Chicago through 2014 and includes an option for 2015.
“Jake Peavy showed again last season why he is capable of being one of the top pitchers in the American League,” Hahn said in a statement released by the team.
Peavy gets a $14.5MM salary in 2013 and 2014. The 2015 option becomes a player option if Peavy reaches innings thresholds in 2013 and 2014. Peavy's previous contract included a $22MM club option with a $4MM buyout. Peavy still receives the buyout, according to the team. It will be paid in equal installments from 2016-19.
Peavy, 31, started 32 games this past season — easily his best showing since he pitched for the Padres. In 219 innings Peavy posted a 3.37 ERA with 8.0 K/9 and 2.0 BB/9. He would have been one of the top starters available in free agency if the White Sox had declined his 2013 option without re-signing him.
This marks Rick Hahn's first major deal as Chicago's GM. CAA Sports represents Peavy, who was without representation as recently as a few weeks ago.
Photo courtesy of US Presswire.
So does this void his option for next year?
They had to buy out the option first. So they paid the $4MM, and then extended him.
Article indicates they still bought him out, so it’s essentially 2/$33MM commitment to the Sox.
Can’t list it as 2/33MM though because the buyout won’t count towards the luxury tax threshold.
The buyout was already a sunk cost though, so I don’t think it should be included.
And that $4M will be deffered as $1.3M per for the 2016, 2017, 2018 seasons.
Floyd’s option is getting declined
Edit: I was wrong, sorry 🙁
MLBTR just filed a separate report, option was picked up on Floyd, declined on Myers and Youk.
It was actually picked up as well.
Ha! You were wrong.
Greinkes price just went up
I like it.
great for the white sox. he probably could have gotten more on the open market
Yeah I would agree. I’m sure the Dodgers and Red Sox would have been in on him, so a 3-4 year deal at $15MM+ would have been attainable. I’ll try not to weep for him though, as he’s already netted $78 million as a big leaguer.
this is a solid deal not an over pay at all and its short enough to really not worry about the age issue. he could have gotten more, but probably not that much, this deal in the long run will more than likely be 3 years 45 million. He was very vocal about wanting to stay in chicago and this proves it, for per year price is probably market value, but the years are a nice concession to stay with a team you like
Totally agree, except for the “age issue”, Peavy is 31.
31 really isn’t that old he will be 34 when this deal is done assuming the option vests. It’s like like its a 5-8 year deal which knowning baseball and gms like we all do he easily could have gotten
Out of the 3 players that looked like they were on their way out: Peavy, AJ, and Youk,
I wanted Peavy retained the most, I’m glad Rick Hahn made this deal.
Don’t know why he resigned with a team that esientially underpaid him. He could’ve made 18 million annually in just about any market looking for an ace.
2012 was the first time in the last 4 years that Peavy made over 19 starts. I think this is a fine, fair deal where the Sox probably paid roughly market price. But, there is no way he would have gotten 18MM annually in any long-term deal.
To be fair his two major injuries over his career, only one was from pitching the other was from rounding the bases. And they were both freak injuries not really from bad mechanics or anything like that
I’d say the torn lat was DIRECTLY from bad mechanics. He has that violent recoil on his motion, which was attributed to his injury. That being said, it’s not something that is likely to happen again.
Doesn’t matter what he did two years ago. Starting pitchers get paid on a what you did for me last year basis. R.A Dickey’s going to get paid Oliver Perez money for one season. Peavy would’ve got 18 million 3 years guarantee because teams wouldn’t have to give up a draft pick compensation knowing Chicago declined his club option.
I could see a 3 yr/$50M deal, but $18M a year seems like a stretch. I think he took a discount because he feels bad about being a money suck for 2 1/2 years for this team. He always seemed very remorseful in interviews about wanting to finally give Chicago what they traded for.
It still definetely matters to teams. Teams arent’ going to be jumping to commit $18M aav for someone that has spent most of the past 4 years on the dl. 1 good season can help him, but doesn’t wash away the fact that he was injured so much. Even CJ Wilson last winter didn’t get $18M aav and his contract season was significantly better era than Peavy’s. You mention dickey, but have you even looked at his stats? Made at least 26 starts for 3 straight seasons, all with era under 3.30. He has shown health and skill.
Also you can still get draft pick compensation if you decline a player’s option. They simply would have had to offer him the qualifying offer.
Cliff lee got what 8 years? He was only 2-3 years removed from a back injury and still widely known to have a bad back. Joe Nathan got 2 years after tommy John.
Cliff Lee had 3 straight seasons of 200+ innings before his big deal. Peavy now has 1 straight season of 200+ innings. Now with this deal if he can repeat 2012 2 more times then he will be in line for a nice big deal like cliff lee got.
This is a very solid deal for both sides. The per year cost is probably market value or even slightly less than market value. You would have to think if he hit the open market the Dodgers, Angels, Red Sox, Yankees, and maybe even the Blue Jays could have been interested. The real win for the whitesox is the 2 year guaranteed part of it. Yes more than likely the 3rd year will be will probably be picked up but still that only makes him 34 at the end of the deal. A good all around deal for the team and player. Great first move for Rick Hahn
Excellent deal for the White Sox and congraulations to Rick Hahn.
I had no idea Williams was no longer the general manager.
That’s cool, it was just announced on friday, he made his first move quick.
Shocked he signed this deal right before he would have become a free agent. He could have done much better next week.
he was very open about staying in chicago, in fact he is one of those players who only wanted to play for one team which is why he vetoed the first trade to the whitesox. He eventually said ok because he heard how badly the sox wanted him and he thought it would make the padres better in the long run, he is a team guy.
The game can really use more guys like that.
Sure he had one good year, but look at his history. Teams aren’t going to commit big money to players that pitched a full season for the first time in like 5 years.
With 230 innings on his frail body this season, the Sox are insane to go back for more.
A 100 inning pitcher the previous two seasons generally means a long DL trip the season after the 230.
Look for Peavy to spend more time on the DL than on the roster next year. Really bad move by Hahn.
he had short seasons because of shoulder surgery, which is supposed to be in the past. Not something that will happen every other year
Loading up big innings the year after a major injury is normally a very bad sign for the next season.
Cool. Sox are in the clear since that injury was 2 years ago. Doh!!
His injury history is as follows. A few minor injuries 4+ years ago, nothing major until he broke his ankle rounding second this not pitching related. And an injury that has never happened to a pitcher. 2 years ago he has a low innings total last year because he was working back from surgery. This peavy from this year 219 innings with a sub 4 era. With a great k/b ration and leading the team in whip is in line with his career Norms. A #1b pitcher for 14 a year is a great deal atop being such a downer.
With his injury history there is definetely risk. I think that this deal was fair. Peavy could go back to being injured again, or the Sox could end up with 2 more years of a great value pitching.
Don’t stop now boyz!! Gr8t move for my SOX. Next order of business thirdbaseman.
If he stays healthy this is a big win for the White Sox.
Not sure if he is going to have another amazing season again though.
Not too long a deal – it could turn out to be a genius move if Peavy stays healthy. 2 years is JUST right…although I would have hoped for the third year to be a vesting option.