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Friday, December 10, 2010
Jeter’s contract breakdown
Davidoff has it:
Now, here’s precisely how it all shakes out:
1) In 2011, Jeter will earn $15 million, of which $2 million is deferred without interest.
2) In 2012, Jeter will earn $16 million, of which $2 million is deferred without interest.
3) In 2013, Jeter will earn $17 million, of which $3 million is deferred without interest.
4) The 2014 player option is for $8 million, with a $3 million buyout if Jeter opts for free agency. He can get up to $17 million by attaining any of these bonuses from 2011 through 2014 (so in other words, even in 2014, he can start with an $8 million salary and still wind up with more).
a) A $4 million bonus for winning AL MVP.
b) A $2 million bonus for placing second through sixth in the AL MVP voting.
c) A $1.5 million bonus for winning a Silver Slugger award.
d) A $500,000 bonus for winning a Gold Glove.
e) A $500,000 bonus for winning the League Championship Series MVP.
f) A $500,000 bonus for winning the World Series MVP.
For clarification’s sake, Jeter can max out at $9 million in bonuses. So if he won the AL MVP in 2011, 2012 and 2013, he’d nevertheless top out at $9 million, even though that would add up to $12 million.
What this means is that if he hits any of those triggers, those values get added in to his 2014 contract, if Jeter exercises the option. I LOVE the way that is structured. So, instead of having the bonuses paid out in the year they were earned, they instead get added in to the 2014 contract. And Jeter has the right to exercise that option. Also interesting is that in 2014, those bonuses can also apply after the season.
I love the entire framework of it. Kudos to whoever in Yankee management thought of this scenario.
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