Dustin Pedroia and the Red Sox agree to extension

December 3, 2008 at 1:20 PM

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Dustin Pedroia - flickr (Boston Wolverine)

There's been a common trend throughout Major League Baseball for teams to lock up their young talent early giving them more front loaded money in longer term deals, while effectively buying potential free agent years at a discount. This strategy allows a team to lock in young talent at reasonable annual dollar amounts over the long term. In Boston, you might say "they just "Nomar-ed" him into a long term deal".

While most teams have taken this strategy against players they have a "high degree of confidence" will be above average players over the life of the deal (i.e. Evan Longoria or Troy Tulowitzki), the Red Sox have the luxury of extending such an offer to the reigning American League MVP, Dustin Pedroia.

Thanks to a six year, $40.5 million dollar contract extension that will be formally announced at a 3 pm press conference today, Dustin Pedroia will be manning second base at Fenway Park for the foreseeable future. The contract, which has been in negotiation since mid-August, includes both a $1.5 million dollar signing bonus and a club option for the seventh year at $11 million dollars ($500,000 team buyout). Details of the contract are as follows:

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)

Pedroia would have been eligible for free agency after the 2012 season. The Red Sox essentially buy out Pedroia's arbitration eligible years at salary's that, while low for an A.L. MVP, give Dustin short term financially security at higher rates than an arbiter might find. At the same time, the Red Sox lock Pedroia's first three years of free agency at $31 million dollars.

Given the Red Sox policy of granting a no trade clause for players who have been with the club for eight seasons, Pedroia would see a no trade clause kicked in when/if the team picks up the 2015 club option.

While I fully expected this to be a priority for the Red Sox and Pedroia this off-season, I am a little surprised that Pedroia didn't have more leverage. This contract is extremely similar to the overall seven year terms agreed to with Nomar Garciaparra after his rookie season.

Nomar's Base salaries
1998 - $1.075 million
1999 - $1.4 million
2000 - $3.7 million
2001 - $7.25 million
2002 - $9 million
2003 - $11 million

2004 - $11.5 million

Total - Seven years, $45 million dollars

Clearly Pedroia got a few more dollars over that seven year stretch than Nomar, but with the average contract being so much higher I would consider these contracts very similar. I think that most Red Sox fans would consider Nomar's contract one of Dan Duquette's best moves over his tenure with the club. I have no reason to believe that Pedroia's contract won't be looked at in the same light in regards to Theo's tenure at the club's helm.

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Discussion

13 Comments on "Dustin Pedroia and the Red Sox agree to extension"

Posted by M.A.G, December 3, 2008 2:18 PM

Excellent news! 7 years 45 MM is an amazing contract. I was ready to pay a lot more for Dusty.

Posted by Anonymous, December 3, 2008 2:22 PM

Sorry, I mean, 7 years, 51 MM.

Posted by M.A.G, December 3, 2008 2:22 PM

Sorry, I mean, 7 years, 51 MM.

Posted by Bob, December 3, 2008 3:42 PM

Saw this one coming a mile away. The salary is lower thn I expected too, but I think it shows the type of commitment that Pedroia has to this team and city. What shows the teams commitment to Pedroia is the length of the deal. Since Theo has taken over the team the longest contract that the Red Sox have handed out was JD Drew's 5 year contract. In general the team hesitates to give out 4 years. Pedroia's is the longest contract they have handed out to anyone by a large margin. testament to what he means to the organization. I would expect to see new contracts for Lester and Papelbon this winter (maybe next winter on Lester) both in the 4 year range.

Posted by bottomlinesox, December 3, 2008 4:00 PM

This is a great example of signing an important player to a long-term deal that locks him in during his prime.

Youk and Paps should be next and I expect they will both get nice raises, but I think their deals will be for less years, just because Pedroia is only 25, while Paps is 28 and Youk is 29...

However, if all three guys get handed fat annual salaries... we may not be able to afford Teixeira - another guy I think the Sox should sign to a long-term deal while he's in his prime.

Bottom Line: Pedroia deserves every penny.

Posted by Anonymous, December 3, 2008 4:21 PM

Great news...Re: Nomar, only about 23 of that was guaranteed, 2003 and 2004 were both option years I believe (although they exercised the 2003 option after the '99 season).

Posted by Tim Daloisio, December 3, 2008 5:07 PM

From Alex Spier at WEEI.com:

The contract is one of the largest conferred upon an infielder before he reached salary arbitration. Similar deals in recent years have been given to Mets third baseman David Wright (six years, $55 million, years 3-8), Jose Reyes (four years, $23.25 million, years 4-7), Marlins shortstop Hanley Ramirez (six years, $70 million, years 3-8) and Rockies shortstop Troy Tulowitzki (six years, $31 million, years 2-7).

So it looks like not doing this last year cost the Red Sox no more than $10 million over the course of the contract.

Posted by Orange Julius, December 3, 2008 5:54 PM

Now he can afford that "Hairclub for Men" membership!

Posted by Sam K, December 3, 2008 6:48 PM

Bald jokes, not nice.

#10

Posted by SamR, December 3, 2008 7:05 PM

This has been a no-brainer for months as far as the fans have been concerned. Glad Theo agreed with us on this one. Very nice.

#11

Posted by Orange Julius, December 3, 2008 9:09 PM

This is my Pedroia story (and the reason I am not in baseball). Arlington, Texas, Memorial Day weekend 2007. Pedroia's first year. He had that awful start but I think he was starting to hit by then. Like I said, there is a reason I ain't in baseball, actually many.

Anyway, I'm at the Memorial day game and he takes his signature mighty swing and pops up. I am in about the 6th row by the Sox on deck circle. As he jogs back to the dugout I yell "ckoke up!" I know he heard me (and probably wanted to kill me--he looked slightly upward). Next AB he goes 12 pitches, I think it was, against Gagne and takes him deep for what turned out to be the game winning run. He goes on to be ROY and MVP and I return to my dead end job making similarly bad management decisions where I remain today.

If this is how it feels to be wrong I don't want to be right...

#12

Posted by Sean Heyboer, December 3, 2008 9:47 PM

This is such a genius extension.

-s

#13

Posted by Gerry, December 4, 2008 1:22 AM

This makes so much sense . . . building a team around your own best prospects. Now to long term sign Youk, Lester, Papelbon and maybe Bay. Still plenty left for Penny, Shoppach and Teix. Next winter, hopefully, sign Ells, Lowrie, Masterson and maybe MDC. This is how, after building Red Sox Nation, you keep Red Sox Nation.

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