While the formal announcement will come at 3 PM this afternoon, the Boston Red Sox have signed AL MVP Dustin Pedroia to a 6-year $40.5 million contract.
The contract buys out the rest of his arbitration years and also his first two years of free agency. He will also receive a signing bonus of $1.5 million.
He will receive the following salaries for the length of the contract:
- 2009 – $1.5 million
- 2010 – $3.5 million
- 2011 – $5.5 million
- 2012 – $8 million
- 2013 – $10 million
- 2014 – $10 million
- Club option
2015 – $11 million (or a $500,000 buyout)
Here are some notes about the deal from Tony Massarotti of the Boston Globe.
- If the Red Sox exercise the option, Pedroia’s contract will be worth $51 million over seven years, an average of just under $7.3 million per season. Without the option, the deal is worth an average of $6.75 million, which immediately becomes Pedroia’s average annual salary from 2009 to 2014. That $6.75 million is the number which will be used in the formula to determine the Sox’ payroll for luxury tax purposes.
- The option will increase to $13 million if Pedroia wins another MVP at any point over the next six years. Anytime he finishes in the top three of the voting, his option would increase by $1 million each time, capping at $13 million. At most, barring award incentives, the deal could be worth $53 million over seven years.
As Massarotti said, this is a great deal for Pedroia and the Red Sox. It gives Pedroia the security and allows the Red Sox to wrap Pedroia up at a fairly reasonable price.
It does make you wonder if the Red Sox will give Kevin Youkilis and Jonathan Papelbon contract extensions as well.
