• SS Tulowitzki, Colorado Rockies Close To Seven-Year Extension

    Posted by on November 30th, 2010 · Comments (6)

    According to ESPN.com, All-Star shorstop Troy Tulowitzki is close to signing a seven-year, $134M contract extension with the Colorado Rockies.  This contract extension would start in 2014 and be tacked onto his already-existing contract which expires at the end of the 2013 season.

    Why is this significant?  Because as a younger player (Tulo turned 26 in early October) in the prime of his career, this contract extension should create further downward leverage on Derek Jeter’s contract demands.  The average annual value of Tulowitzki’s contract extension in Colorado is worth $19.1M.  Even if you add the $23.75M remaining on Tulowitzki’s original contract with the $134M offer and divide the total outstanding financial commitment ($157.7M) by the number of years he will remain in Denver, the Rockies’ remaining average annual obligation is $15.7M.

    Given Jeter’s age and the mounting evidence of his decline, it’s hard to imagine why the Yankees should feel the need to pay him more than $15M per season if the best young player at the position won’t be earning even $1M more, on average, over the next ten seasons.  At most, the Yankees could offer Jeter $16M to keep him as the game’s highest-paid shortstop over the life of the contract even if the truth is that Tulowitzki won’t earn more than $10M in any one season before his monster extension kicks in after 2013.

    Legacy is nice and lifetime achievements are wonderful.  But the Rockies — no big spenders — just set the market for what elite shortstops should be making right now.  Jeter is no longer an elite shorstop and certainly doesn’t project to be in the future.  Now, more than ever, the 3Y/$45M contract offer to Jeter looks like an appropriate offer.  I could understand some flexibility on the dollars, perhaps up to $16M or $17M annually.  But Jeter should stop dreaming if he sees more than three years $20M annual salaries out there for him.

    Comments on SS Tulowitzki, Colorado Rockies Close To Seven-Year Extension

    1. Corey Italiano
      November 30th, 2010 | 9:49 am

      exactly.

    2. Jim TreshFan
      November 30th, 2010 | 12:46 pm

      But as I’ve said, for Jeter this isn’t about being the highest paid shortstop, it’s about being the highest paid Yankee. Anywho the math drives me nuts (not my best subject), but here’s an interesting take on the situation:
      http://bleacherreport.com/articles/529251-derek-jeters-true-market-value-how-many-millions-is-he-really-worth

    3. MJ Recanati
      November 30th, 2010 | 1:00 pm

      Jim TreshFan wrote:

      for Jeter this isn’t about being the highest paid shortstop, it’s about being the highest paid Yankee.

      If that were true, he’d be asking for more than the $23-24M per year that his side has requested. He’d be asking for between $26-32M since A-Rod (the highest-paid Yankee) is making $32M, $30M, $29M and $26M over the next four seasons.

      While Jeter may want to be the highest-paid Yankee, he’s not asking to be the highest-paid Yankee.

    4. MJ Recanati
      November 30th, 2010 | 1:02 pm

      @ Jim TreshFan:
      Although their methodolgy is pretty unscientific, I do agree with their findings, for the most part. By offering $15M/season, the Yankees have offered Jeter a generous contract based on the market.

    5. mwach1
      November 30th, 2010 | 8:24 pm

      “Now, more than ever, the 3Y/$45M contract offer to Jeter looks like an appropriate offer.”

      No, actually it’s not appropriate. 3/$36M would be appropriate, as it would be comfortably more than any other offer.

      3/$45M is a nice gesture on the part of the Yankees.

    6. Jim TreshFan
      November 30th, 2010 | 8:52 pm

      Another FA SS signing: Juan Uribe inks 3 year $21 million deal with the Dodgers. So the Jints REALLY are in need to fill the position now. So assuming they weren’t willing to better the offer Uribe got with LA what do you they would offer Jeter?

    Leave a reply

    You must be logged in to post a comment.