• How To Get The Jeter Deal Done

    Posted by on November 28th, 2010 · Comments (55)

    We know the Yankees want to sign Derek Jeter for three years at $45 million. And, reportedly, Jeter’s camp wants either four years at $92 million or five years at $115 million. Seems like a wide gap, no? But, actually, there’s a simple way to get this one.

    First, forget five years. That’s not happening.

    And, while the Yankees don’t want to go to four years, they can offer him four – with a team option/buy-out on the fourth year – by front loading the contract with “milestone marketing agreement bonuses” (like they have with A-Rod!) on the front end. Here’s how I would do it:

    Pay Derek Jeter $19 million in base salary for 2011 (splitting the difference between $15 and $23 million) and give him a $6 million “marketing agreement” bonus this season when he gets his 3,000th career hit. This is the same amount of bonus that A-Rod will get for hitting his 660th career homerun.) This gives Jeter $25 million in 2011 – a number that he cannot be unhappy about, right?

    Pay Jeter $20 million in base salary for 2012. Period.

    Pay Jeter $20 million in base salary for 2013 and give him a $6 million “marketing agreement” bonus this season when he gets his 3,320th career hit – setting the record for hits by a right-handed batter, lifetime, in the American League. (Note, if Jeter is productive for three seasons, he should get this mark. But, if not, the Yankees could save $6 million here.)

    Pay Jeter $17 milion for 2014. But, have a team option on this season. If they Yankees take the option, they pay Jeter the $17 million. But, if they don’t exercise the option, they have to “buy out” Jeter for $6 million.

    With this deal, the Jeter has the potential to earn $88 million over four years – which is an average of $22 million per season. There’s no way he cannot be happy with that. And, if Jeter blows up, at the worst, the Yankees would owe him $71 million and only have him for three seasons. Granted, that’s $26 million more than they are offering him now. But, the Yankees can figure out where to get that extra $8.67 million a year (for three years)…of this I have no doubt.

    And, if the Yankees offer this to Jeter and be balks, then you let him go and hold your head high – because you more than made him a fair offer and no one could beef about it.

    Comments on How To Get The Jeter Deal Done

    1. November 29th, 2010 | 8:00 pm

      @ Evan3457:

      What do you blame it on? Not being able to handle New York?

    2. Evan3457
      November 29th, 2010 | 9:11 pm

      lisaswan wrote:

      @ Evan3457:
      What do you blame it on? Not being able to handle New York?

      Yes.

      And that was entirely unknowable before Pavano got here. He had just pitched well under severe pressure in the World Series in 2003.

    3. Raf
      November 29th, 2010 | 10:47 pm

      @ Evan3457:
      There was nothing stopping him from demanding a trade if he didn’t find NY to his liking.

      Also, he was shelled as a Marlin, and he was injured as a Marlin

      http://www.cliffordsbrb.blogspot.com/2004_12_12_archive.html
      “a pitcher with a five-year history of arm injuries, just two healthy major league seasons, and just one above average season…”

    4. Evan3457
      November 30th, 2010 | 1:21 am

      Raf wrote:

      @ Evan3457:
      There was nothing stopping him from demanding a trade if he didn’t find NY to his liking.
      Also, he was shelled as a Marlin, and he was injured as a Marlin
      http://www.cliffordsbrb.blogspot.com/2004_12_12_archive.html
      “a pitcher with a five-year history of arm injuries, just two healthy major league seasons, and just one above average season…”

      That’s not really fair or accurate; he was both effective and durable for the two seasons before he signed with the Yankees. He was never shelled with the Marlins; earlier in 2002, he was shelled for the Expos. Late in 2002, he made his only 8 starts for the Marlins that season. The team went 6-2, and he was 3-1 with a 4.17 ERA in 41 innings.

      In 2004, he made the All-Star team and was 6th in the voting for Cy Young. In 2003, he pitched very well for the Marlins in the post-season (very tiny sample, of course). Whatever he had been in 1998-2002, he was something altogether different in 2003-4, so much so that well-regarded GM’s such as Dombrowski and Epstein made comparable bids. Epstein is alleged to have bidded higher than the Yankees.

      Why he didn’t ask for a trade, I have no idea. Maybe he didn’t want to publicly admit he couldn’t handle it.

      And he’s been effective and durable after leaving the Yankees. That’s 4 effective and durable seasons wrapped around 4 ineffective Claude Raines seasons. I usually laugh at “conspiracy theories”, but in this case, the evidence keeps piling up, year by year.

    5. MJ Recanati
      November 30th, 2010 | 9:16 am

      Evan3457 wrote:

      Pavano was a talented, durable pitcher in the seasons right before he came to the Yanks

      Yes, in those two seasons right before joining the Yankees. But what about the seasons before that?

      Evan3457 wrote:

      That’s not really fair or accurate; he was both effective and durable for the two seasons before he signed with the Yankees.

      I don’t see how it’s not fair to point out that Pavano had a history of injuries before his back-to-back 200 IP seasons in ’03/’04 as part of his overall resume. There was clearly a medical history there with Pavano that manifested itself again with the Yankees.

      Whether you attribute part of his failure in New York to being unhappy or not, you can’t deny that he physically broke down in New York and that no mind-body connection can cause some of the injuries he suffered. That is, unless you believe that some of Pavano’s surgeries were purely elective in order to escape having to pitch here. I personally don’t believe anyone has elective elbow surgery unless there’s a reason to do so.

      Evan3457 wrote:

      well-regarded GM’s such as Dombrowski and Epstein made comparable bids. Epstein is alleged to have bidded higher than the Yankees.

      I’ve never understood why that matters. Good GM’s make mistakes all the time. Just because others wanted to sign Pavano doesn’t mean those attempts by other teams weren’t similarly misguided. Group-think doesn’t create a legitimate justification, it only shows that more than one person didn’t do his homework.

      ********

      Pavano’s rebirth over the past couple of seasons is great for him but I don’t believe in conspiracy theories and I don’t believe in the fallacy of New York being a tough place to play. Plenty of players fail in supposedly fan-friendly markets and plenty of players succeed in supposedly difficult markets. And, as Raf rightly asked, if he was so unhappy in New York, he could’ve easily asked for a trade or his outright release. There’s also no reason to believe that any request on his part would’ve become public knowledge. There was certainly enough reason for the Yanks to cut bait on him at any point after the 2005 or 2006 season and could’ve spun it as their decision, not his.

      Assuming Pavano was legitimately injured during his time in New York, his success post-New York doesn’t prove that New York was too tough for him. It could simply be that he’s finally healthy again.

      Chris Carpenter — one of the game’s best pitchers — pitched a total of 21.1 innings between 2007 and 2008. Now he’s back to being a perennial Cy Young candidate. It would seem to me that Pavano’s re-emergence is along the same lines. Reduced innings and time to heal, combined with a bit more luck along the way.

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