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Checking In On The Latest $100MM Contracts

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Every year a few players join baseball’s exclusive $100MM club with free agent deals and mega-extensions. Last offseason was no different — eight players signed nine figure deals. The contracts were all for five years or more, so it’s far too early to call them successes or failures. As the season approaches its halfway point, let’s check in on baseball’s newest $100MM contracts:

  • Albert Pujols, ten-year, $240MM contract - Pujols had a painfully slow start, but he has raised his batting line to a respectable .270/.332/.461. His last 40 games have been legitimately Pujols-like: 11 home runs and an OPS over 1.000.
  • Joey Votto, ten-year, $225MM extension - It's impossible to have a complete discussion about baseball's best hitters without considering Votto. The 28-year-old leads the National League in on-base percentage, slugging percentage, walks, doubles and wOBA, so this deal couldn't be going any better for the Reds.
  • Prince Fielder, nine-year, $214MM contract - Fielder continues to hit at an All-Star level, though he has a relatively modest total of 12 home runs. Unfortunately for Tigers fans Mike Ilitch's bold investment hasn't been enough to keep the team above .500.
  • Matt Kemp, eight-year, $160MM extension - Hamstring issues have sidelined Kemp, who was the best hitter in the National League for the first month of the season.
  • C.C. Sabathia, five-year, $122MM extension - Sabathia, now on the disabled list with a strained groin, is in the midst of yet another tremendous season. He has a 3.45 ERA with 8.8 K/9 and 2.4 BB/9 in 107 innings.
  • Matt Cain, five-year, $112.5MM extension - Cain's enjoying his best season as a Major Leaguer. He has a career-best ERA (2.27), strikeout rate (9.0 K/9) and walk rate (1.9 BB/9) through 107 innings. The Giants' decision to invest in Cain still looks like a good one.
  • Jose Reyes, six-year, $106MM extension - Reyes' offensive numbers have dropped off across the board this year, no thanks to a 60 point dip in batting average on balls in play.
  • Ryan Zimmerman, six-year, $100MM extension - Zimmerman's off to a slow start at the plate despite two home runs in his past three games. He missed two weeks with shoulder soreness earlier in the year and has just a .235/.297/.350 batting line.

No More Personal Service Deals & Milestone Bonuses

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Major League Baseball and the MLB Players Association have agreed to put an end to personal service deals and milestone bonus clauses, ESPN.com's Jayson Stark reports. Existing contracts with these deals or bonuses won’t be affected by the changes, which were agreed to this month.

Albert Pujols and Ryan Zimmerman recently signed long-term contracts which include personal services provisions and Alex Rodriguez has milestone bonuses associated with his contract. However, MLB and the union say these bonuses violate baseball’s collective bargaining agreement. The sides have agreed that the CBA doesn’t allow players to agree to deals that include obligations beyond their playing careers.

MLB is trying to prevent teams from finding loopholes that enable them to evade the luxury tax, Stark reports. Personal service deals and milestone bonuses aren’t considered guaranteed money and therefore don’t count against the luxury tax.

Nationals Links: Zimmerman, Rizzo, Harper

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The Nationals signed franchise cornerstone Ryan Zimmerman to a six-year, $100MM extension over the weekend, and can now turn their full attention to Spring Training. Here are some links from the nation's capitol, starting with notes on baseball's newest $100MM man…

  • ESPN.com's Keith Law argues that Zimmerman should have had to prove his ability to stay healthy before obtaining such a large guarantee from the Nationals, who have promising third base prospect Anthony Rendon in their system.
  • Matt Swartz of FanGraphs compares Zimmerman to players who signed long-term deals at similar stages in their careers and concludes that comparable agreements have been worthwhile for teams in recent years.
  • Mark Zuckerman of CSNWashington.com has the year-by-year breakdown of Zimmerman's extension. The third baseman will earn $12MM in 2012, $14MM each year from 2013-2018, and $18MM in 2019. The $18MM option for 2020 comes with a $2MM buyout. Zuckerman explains how the personal services contract and escalator payments fit into the deal.
  • Amanda Comak of The Washington Times notes (on Twitter) that a $10MM "personal services" provision raises the value of the new extension to exactly $100MM.
  • “It feels good,” said GM Mike Rizzo to Adam Kilgore of The Washington Post in the wake of the signing. “You have payroll certainty. You have control of players … And there’s a lot of comfort to the fact these guys are going to be together for a long time … And now we’re ready to take off.
  • Ken Rosenthal of FOX Sports predicts that Bryce Harper will be with the Nationals early in the season, but not before April 25th. He notes that the outfielder must spend at least 20 days in the minors to delay his free agency by a year.

Ben Nicholson-Smith contributed to this post.

Zimmerman Extension Notes And Reactions

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Ryan Zimmerman became the second $100MM player on the Nationals' payroll earlier today when he inked a six-year, $100MM extension with a full no-trade clause and a $24MM option for a seventh year. Here's some notes and reactions from around the baseball universe:

  • Dave Cameron of FanGraphs examines some comparables and calls the extension a "fair price" for a "valuable skill set." The Nationals won't save a ton of money on this deal, according to Cameron, but Zimmerman will earn the value of the deal barring lingering injury issues.
  • Jon Heyman of CBS Sports writes that the Nationals spent a lot of money for a player with Zimmerman's injury history, especially with Anthony Rendon waiting in the wings. One competing executive told Heyman, "Seems like they have two $100-million contracts but no $100-million players.''
  • The no-trade clause doesn't come into effect until 2014, but Mark Zuckerman of CSNWashington.com tweets a quote from GM Mike Rizzo explicitly stating Zimmerman "will not be traded the next two years."
  • Getting that no-trade clause in place was the final hurdle in the deal, tweets MLB.com's Bill Ladson.
  • Amanda Comak of the Washington Times observes that Zimmerman joins Matt Kemp, Ryan Braun, Troy Tulowitzki, Prince Fielder, and Albert Pujols as the only players under contract through 2019 (Twitter link).
  • Zimmerman's deal won't impact any contract negotiations between David Wright and the Mets, according to Andy Martino of the New York Daily News (Twitter link).
  • Wright recognizes that his situation is different from Zimmerman's, according to ESPN's Adam Rubin. Wright also expressed that he's happy for Zimmerman, who is a close friend.

Nationals, Zimmerman Agree To Extension

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The Nationals brought in several new players this offseason, but they may have just made their most important move. Washington has agreed to terms on a new $100MM six-year contract extension with Ryan Zimmerman, with a club option for a seventh year worth $24MM. In conjunction with his current deal, the new agreement can keep the 27-year-old in the nation's capital through 2020 if the option is exercised. Saturday was the Brodie Van Wagenen client's self-imposed deadline for a new deal.

Icon_13487393Zimmerman, 27, was already under contract through 2013 thanks to the five-year, $40MM contract he signed in April 2009. He is slated to earn $12MM this season and $14MM next season, and would have become a free agent this winter had he not signed that first extension. No-trade protection was said to be the final hurdle in talks and the new deal will provide Zimmerman with a full no-trade clause.

The third baseman also agreed to $10MM personal services deferral in order to give the Nationals flexibility, tweets Jon Heyman of CBSSports.com.  Zimmerman's current contract will remain unchanged, Mark Zuckerman of NatsInsider.com tweets.

Since making his big league debut a few weeks after being the fourth overall pick in 2005, Zimmerman is a .288/.355/.479 career hitter with four 20+ homer and four 30+ double seasons to his credit. Over the last three years, he's produced a .296/.370/.499 batting line with a Gold Glove, an All-Star Game berth, two Silver Sluggers, and a pair of top-25 finishes in the MVP voting. Only Evan Longoria and Adrian Beltre have posted a better UZR at the hot corner than Zimmerman (+24.6 UZR) since 2009. In terms of wins over replacement, he's been the 12th most valuable position player in baseball over the last three seasons (17.1 WAR).

As with every long-term contract, the Nationals are assuming a significant amount of risk. Zimmerman missed more than two months due to abdominal surgery last summer, and he missed close to two months with a shoulder problem in 2008. After playing in 150+ games in his first two full seasons, he's topped the 150-game plateau just once in the last four years. Although he's an excellent defender at the hot corner at the moment, Zimmerman may have to move to first towards the end of the deal, a move that will be easier to swallow if third base prospect and 2011 sixth overall pick Anthony Rendon develops as expected.

GM Mike Rizzo has ensured that his core can remain intact through at least 2015. Zimmerman, Jayson Werth, Gio Gonzalez, Stephen Strasburg, Jordan Zimmermann, Danny Espinosa, Wilson Ramos, Tyler Clippard, Drew Storen, Rendon, and Bryce Harper are all under contract or team control for at least another four seasons. Center field remains a long-term question, but next offseason's free agent crop offers a number of excellent candidates, including B.J. Upton, Michael Bourn, and Shane Victorino.

As our Extension Tracker shows, Zimmerman's contract is the fifth $100MM+ extension handed out over the last calendar year, and the third multi-year extension given out by the Nationals this offseason. Mike Morse (two years, $10.5MM) and Gonzalez (five years, $42MM) also signed for multiple years this winter while Zimmermann and Clippard remain extension candidates as well. Washington is very clearly a team on the rise, and now they know their franchise player will be around when the rebuild results in a playoff spot.

Adam Kilgore of the Washington Post first reported the agreement while Buster Olney of ESPN.com (via Twitter) reported the contract length.  Jim Bowden of ESPN and MLB Network Radio (via Twitter) reported the deal's worth.  Mark Zuckerman of NatsInsider.com tweeted that the option year is worth $24MM.

Mike Axisa contributed to this post. Photo courtesy of Icon SMI.

The Latest On Ryan Zimmerman

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The Nationals and Ryan Zimmerman are reportedly close to a long-term contract extension, with no-trade language being the largest remaining hurdle. The third baseman's self-imposed deadline for a new deal is 10am ET this morning, as MLB.com's Bill Ladson reports (on Twitter). Here's the latest, with the newest info up top…

  • Rizzo said the two sides made progress and the Nats believe a deal will be struck either tonight or early tomorrow, according to Kilgore, Zuckerman, and Comak (all Twitter links). "We feel good and optimistic Zim is going to be a Washington National for a long, long time," said the GM. "I don't see any major stumbling blocks. More detail-oriented work that needs to be done."
  • "Nothing is done until it's done, but both sides are optimistic," said Zimmerman's agent Brodie Van Wagenen in a statement according to Comak and Kilgore (all Twitter links). "While nothing is finalized, I am confident we can reach an agreement … [we are] working on a structure that will allow the team to continue to add talent and establish a winner."
  • A source told ESPN's Jim Bowden that there will be closure to negotiations tonight, one way or the other (Twitter link).
  • Zimmerman acknowledged that the no-trade issue is "basically the only thing left" to settle, tweets Amanda Comak of the Washington Times.
  • Rizzo told reporters (including Kilgore and Comak) that they're working on a "very lucrative, very complicated" extension (Twitter links). "We don't have an agreement at this time," confirmed the GM.
  • "Today is the day," Zimmerman said to reporters after today's workout, including Amanda Comak of The Washington Times (Twitter links). "Both sides are working to get over the last couple of hurdles." He said they've gone back and proposed a "creative" solution to bridge the gap.
  • The deadline has passed and players are out on the field for their workout, report Ladson and Kerzel (Twitter links). There is no word as to whether an extension has been reached.
  • "The ball has been in the Nationals' court for quite some time," said Zimmerman to reporters, including Ladson (Twitter links). "I'm waiting like the rest of you."
  • GM Mike Rizzo responded with a simple "no" when asked if there was anything new to report, says Pete Kerzel of MASNSports.com (on Twitter).
  • Mark Zuckerman of CSNWashington mentions that the deadline is a soft deadline, and something could still get worked out in the near future (Twitter links). He points out that Zimmerman's last contract was announced three weeks after its deadline.

Zach Links contributed to this post.

Nationals, Ryan Zimmerman Close To Extension

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8:17pm: A Nationals official said he'd be "surprised if we missed this opportunity" to extend Zimmerman, writes Adam Kilgore of the Washington Post.

3:04pm: Hurdles still exist between Zimmerman and the Nationals, Amanda Comak and Marc Lancaster of the Washington Times write. Manager Davey Johnson says he'd endorse an extension for the third baseman.

9:32am: Zimmerman said he's close to an extension, ESPN's Tim Kurkjian tweets. The third baseman suggested he wants a no-trade clause, according to Adam Kilgore of the Washington Post (on Twitter). He said he's willing to sign a "team friendly" deal since he wants to play in Washington. The sides haven't yet agreed on the no-trade issue, Heyman tweets.

FRIDAY, 7:26am: Zimmerman didn't ask for "Tulo money," Jon Heyman of CBSSports.com tweets. The deal between Zimmerman and the Nationals would be in the $18MM per season range, Heyman writes. Fellow 2005 first rounder Troy Tulowitzki signed a ten-year, $157.75MM extension last offseason.

THURSDAY, 4:46pm: Kilgore reports that most notable hurdle remaining is no-trade language (Twitter links). Amanda Comak of The Washington Times says the two sides are close, but not significantly closer than they were this morning.

4:15pm: The Nationals and Zimmerman are close to an extension, reports Ken Rosenthal of FOX Sports (Twitter links). The new deal would be for at least six years, but Rosenthal cautions that deal-breakers remain in place and are described as "real."

MLB.com's Bill Ladson hears that the two sides are "close to a resolution" on an extension (Twitter link).

11:05am: Rizzo and Van Wagenen are expected to meet this afternoon, Kilgore reports. It may be the final face-to-face meeting before the deadline for a deal.

9:16am: The Nationals remain "hopeful" that they'll work out an extension with third baseman Ryan Zimmerman, GM Mike Rizzo told reporters, including Adam Kilgore of the Washington Post. The Nationals will continue talking to Zimmerman until this Saturday's deadline, though there's no guarantee of a deal.

“I don’t have a real good idea on the deadline, whether it’ll get done or not," Rizzo said. "We’re continuing to try.”

Rizzo said the deadline won't stop him from talking to agent Brodie Van Wagenen, according to MLB.com's Bill Ladson (on Twitter). Van Wagenen was in Nationals camp yesterday, though we shouldn't over-analyze his presence since agents regularly attend Spring Training and he also represents Drew Storen and John Lannan.

Extension Updates: Zimmerman, Bourn, Phillips

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Extension season generally continues well into Spring Training and the regular season. For example, teams and players agreed on nine extensions between this date last year and the end of April. Let's check in on some ongoing extension talks:

  • Ryan Zimmerman said he doesn't want to discuss a new extension after this Friday, according to Bill Ladson of MLB.com. Zimmerman had already set the official start of Spring Training as a soft deadline for talks, since he doesn't want to let contract talks become a distraction. Agent Brodie Van Wagenen was in Nationals camp today.
  • Michael Bourn says the Braves haven't approached him about an extension so far, according to David O'Brien of the Atlanta Journal-Constitution (Twitter link). Bourn will earn $4.4MM in 2012 and hit free agency after the season unless the Braves lock him up.
  • Brandon Phillips said he's not looking for "Prince Fielder money" in extension talks with the Reds, according to John Fay of the Cincinnati Enquirer. "I just want what other second baseman got," he said. "I want to be in my city." Phillips is not under contract beyond 2012.
  • Check out MLBTR's Extension Tracker for information on previous deals.

Nationals Notes: Zimmerman, Rendon, Strasburg, Harper

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It's time for some Nationals notes, courtesy of Adam Kilgore of the Washington Post.

  • "I think I want to play third base until someone is better than me at it," Ryan Zimmerman explained to Kilgore.  The topic comes up because last year's first-round draft pick Anthony Rendon is a third baseman by trade, and if Zimmerman were to be extended, someone would have to change positions if Rendon proceeds to the Majors and is not traded.  On Rendon specifically, Zimmerman said, "If he comes up and plays third and plays second or whatever, then I’m going to be his best friend there. In the end, he’s going to help us win games. That’s the most important thing."
  • Rendon is in big league camp because of his draft contract, but Kilgore thinks he may begin his pro career at Class A Potomac.  The Nationals intend to play Rendon at third base, second base, and shortstop, at least during spring training, but manager Davey Johnson downplayed the extra infield positions, according to Mark Zuckerman of CSNWashington.com.  Rendon was deferential to Zimmerman in his comments.
  • The Nationals intend to use Stephen Strasburg until he hits his innings limit and then shut him down, GM Mike Rizzo told reporters.  There's an expectation of a 160-inning cap, and Rizzo doesn't seem to be considering a six-man rotation or skipping Strasburg's starts.  I imagine skipping Strasburg starts while he's in good health could upset some fans who buy tickets specifically to watch him pitch.
  • Super prospect Bryce Harper says he intends to "keep my mouth shut and play," but certainly aims to make the team out of spring training.  Kilgore mentions Super Two considerations for the team, and it's worth noting that the new collective barganing agreement will result in more players getting that designation than in years past.
  • A potential Mike Cameron replacement will come internally, said Rizzo.  Mark DeRosa could play right field if Jayson Werth is in center, while Jason Michaels and Brett Carroll are in camp in minor league deals.  Roger Bernadina may have a leg up as an out of options player, in my opinion.  Here's MLBTR's full list of players who are out of minor league options.

Quick Hits: Prospects, Soler, Zimmerman

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Yahoo's Jeff Passan presents the projected 2012 payroll for every MLB team, from the Yankees ($204MM) to the Pirates ($46MM). Those two clubs are currently working on a trade and, oddly enough, the Pirates would be the ones absorbing salary. Here are tonight’s links…

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