Jeter’s Contract Worth $51-$65 Million Over 3 to 4 Years

If you missed it, the Yankees and Derek Jeter came to an agreement on a new three-year deal this afternoon. Everybody knew it would be somewhere between $45-$51 million, but until now the details have been elusive.

Here, via Jack Curry of the YES Network, is how it breaks down:

The deal is a three-year $48 million deal with a player option. The option is for $8 million with another $9 million in incentives. If he doesn’t exercise his option there is a $3 million buyout.

That essentially guarantees Jeter at least three-years and $51 million. If he exercises the option, but doesn’t reach the incentives it is a four-year $56 million deal. And if he exercises the option and reaches all the incentives he’ll get four years and $65 million.

The one thing I should note, buyout is probably not a good term as there generally aren’t buyouts in player options. Instead this is probably the deferred money they were talking about it’s just called something else. Really this is a straight three-year $51 million deal with a $5 million player option. Not terrible, but it really depends on how easily obtainable those $9 million incentives are.

Update: Jack Curry has another update. The $9 million in incentives will be based on a point system for winning the MVP or Silver Slugger award, for being World Series or ALCS MVP, or for winning a Gold Glove. Coming in the top six in voting for any of those awards can also earn him points.

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8 Responses to Jeter’s Contract Worth $51-$65 Million Over 3 to 4 Years

  1. Don't like this. The Yankees essentially bid against themselves.

    Their original offer was for 3-years and $45 million. Then without anybody willing to even come close to this offer they upped it to a 4-year deal worth $56 million with another $9 million in incentives. Stupid.

  2. So potentially Jeter could earn $17 million as a 40-year old in 2014 by winning the popularity contest that is the Gold Glove. Likely not as simple as that, but it's what it boils down to.

  3. Bronx Knight says:

    It doesn't make that much sense from a straight market perspective, but … Jeter was dragging his feet and making things publicly messy and the Yankees really wanted to resolve this, and have a final determination on what they owe Jeter (and Mariano), so that they can focus "like a laser beam" on getting Cliff Lee, or, plan B, Crawford.

    It makes some sense from an accounting perspective to have finality on this deal in advance of the winter meetings.

    And, FWIW, the 4-year deal is for $14M per, instead of their original offer of $15M per. The incentives aren't worth much; what are the odds that Jeter will be any kind of MVP (let along Gold Glove) in four years? If by some miracle he is, then maybe he will deserve the extra money.

    The Jeter negotiations turned me off. Now we can focus on our PITCHING.

  4. My biggest worry is that Jeter locks up all of the incentives with one big year in 2011 and then tanks in 2012 and 2013 only to make $17 million in 2014 when he's essentially worthless.

    • Bronx Knight says:

      Are the incentives payable in 2014 only for accomplishments in 2014, or do Jeter's accomplishments over 2011-13 also count towards what he gets paid in 2014?

      If it's the former, then it's not a bad deal, but if it's the latter, then I share your concern.

  5. smurfy says:

    So Jete may not be superhuman anymore, but the Yankees want his competence and leadership. He just has to go back to his slumpproof dink swing to raise his average back up 40 points, and to rally 'em around when they need it. And his gold glove popularity comes from an appreciation for that competence.

  6. The real worry is that by 2013 and 2014, the Yankees will have 150 million or so going to only a few guys. Sabathia, A-Rod, Jeter, Teixiera and for 2013, Burnett. That doesn't include raises to Cano or Hughes. That doesn't leave much for the rest of the team.