Wednesday, December 03, 2008

Dustin "Pedey" Pedroia Is Signed By Boston To A Long Term Deal...Just now..

This just in from the Boston Herald and the Boston Globe! Great news!!!!

"As it turned out, winning the AL MVP last month wasn’t the only big event of Dustin Pedroia's offseason.
Pedroia and the Red Sox have reached agreement on a six-year, $40.5 million extension, to be announced later this afternoon. According to an industry source, Pedroia will receive a $1.5 million signing bonus and a $1.5 million salary for 2009. He’ll earn $3.5 million in 2010, $5.5 million in 2011, $8 million in 2012, $10 million in 2013 and $10 million in 2014, with a club option for $11 million in 2015 and a buyout of that option worth $500,000.
Additionally, Pedroia’s base salary can escalate by $2 million in both 2014 and 2015 with additional Top 3 finishes in MVP voting."

Peter here...that's from the Herald. Now, here's the Globe blurb, and then my comments...

"In case you're wondering, here's the precise breakdown of Dustin Pedroia's new six-year, $40.5 million contract with the Red Sox, which is due to be formally announced at approximately 3 p.m. today (Wednesday)...

Signing bonus - $1.5 million
Base salaries
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)

A few things:
* For the Red Sox, the big point here is that they bought at least two of Pedroia's free agent years for $10 million per. If the club exercises the option, they will effectively have signed Pedroia to a three-year deal (beyond 2012, when he is eligible for free agency) worth $31 million. Pedroia's gain is that he obviously guarantees himself a good deal of money now and gains a great measure of long-term security.
* If the Red Sox execrise the otpion, 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."

Peter here. EVERY PENNY IS WORTH IT! Thanks to the Herald and the Globe, and of course, thank you Red Sox front office and to you, John Henry's wallet. The AL MVP will be with us for a long time, and nothing could be ANY better.

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