Braun only gets $45 million?

[Ronny]

I don't fully understand how contract negotiations in baseball work, but 8 years, $45 million sounds like an extremely low offer for a 40 homer candidate in his second year. What gives?

http://sports.espn.go.com/mlb/news/story?id=3397385

"I really believe in the direction this franchise is headed," the NL Rookie of the Year said Thursday after his $45 million, eight-year deal was announced. "I'm extremely excited in our future."

Braun's contract, which runs through 2015, replaces the $455,000, one-year renewal the Brewers gave him in spring training. It includes a $2.3 million bonus this season and could increase to $51 million through escalators.

[MadMax]

He bought financial security. He took the long-term deal early. When you do that, you typically take less per year. That's the trade-off. He's now guaranteed to make $45 million no matter what happens. Hard to turn down that kind of money, particularly if you're happy where you are...which Braun claims to be.

[meh]

Simple.

He's in his 2nd year. So assuming no long term deal, next year he should be making the minimum. And the 3 years after that, arbitration, which usually favors the ball club when the player is pretty young even if he has a great season.

The club is basically severely overpaying him for his next couple of seasons, and giving him financial security, in return for him not asking for a king's ransom in the 2nd half of the deal.

[MadMax]

Simple.

He's in his 2nd year. So assuming no long term deal, next year he should be making the minimum. And the 3 years after that, arbitration, which usually favors the ball club when the player is pretty young even if he has a great season.

The club is basically severely overpaying him for his next couple of seasons, and giving him financial security, in return for him not asking for a king's ransom in the 2nd half of the deal.
Of course, the Mayans know this is really a 5 year deal.

[Cannonball]

Of course, the Mayans know this is really a 5 year deal.

I'd be funny if teams severely backloaded deals because of that.
"OK, we'll pay you the minimum for the next few years and then $800 Million in 2013."

[MadMax]

I'd be funny if teams severely backloaded deals because of that.
"OK, we'll pay you the minimum for the next few years and then $800 Million in 2013."

That just makes good business sense.

[htownbball]

yea he'd be making less than $500k this year and then almost the same next year. in his 4th, 5th, and 6th year he'd probably have to sign a series of 1 year deals because of arby. he took the financial security and the brewers are hoping that since they paid him early (as opposed to have him making under $1m for the next few years), that he'll show them some loyalty when he's eligible for free agency.

[Ottomaton]

Just for comparison, Ryan Howard, a similar player with 2 years on Braun, earned $900,000 last year (when he won MVP) and $350,000 the year before. Until players become arbitration eligible, teams are allowed to tell players what they will earn. Literally just tell them.

Without an alternative deal, after three years of being told their salary, for three more years the club and the player both submit a proposed salary to an arbitrator and the arbitrator just picks one of the two figures. The arbitrator can't split the difference. It has to be one or the other.

The system is set up to heavily favor older, 'proven' players.

[Ronny]

The system is set up to heavily favor older, 'proven' players.

Right, but considering how highly recruited he was, if he puts up big numbers in his first 4 years, isn't he eligible for a Carlos Lee type contract in his 5th year? I'm not familiar with the arbitration process, though, and that might have something to do with it.

[htownbball]

Right, but considering how highly recruited he was, if he puts up big numbers in his first 4 years, isn't he eligible for a Carlos Lee type contract in his 5th year? I'm not familiar with the arbitration process, though, and that might have something to do with it.

no. the arbitration process only considers year to year contracts, not long term deals. years 4,5, and 6 are arbitration eligible years. after year 6, theyre eligible for free agency. very rarely do players actually go through the arbitration process. usually they come to an agreement with the club that splits the difference.

at the beginning of the year, miguel cabrera signed a 1 year $11.3m deal with the tigers to avoid arby.

alfonso soriano lost his arbitration case and made $10m as opposed to the $12m he was seeking a few years ago.

[Ottomaton]

Right, but considering how highly recruited he was, if he puts up big numbers in his first 4 years, isn't he eligible for a Carlos Lee type contract in his 5th year? I'm not familiar with the arbitration process, though, and that might have something to do with it.

I think it would be after the fifth year of the contract.

2 club years, est. $1 mil per =

$48 - $2 = $46 mil

Three arbitration years at $10 mil per (what Ryan Howard got in arbitration) =

$46 - $30 = $16 mil

He is getting $16 mil for his first three free agency years, which I'm going to guess is about a $30 million dollar discount?

If all goes well, though, at the end of the contract he will be in line for one last big free agent deal, in his low 30's.

[Ronny]

no. the arbitration process only considers year to year contracts, not long term deals. years 4,5, and 6 are arbitration eligible years. after year 6, theyre eligible for free agency. very rarely do players actually go through the arbitration process. usually they come to an agreement with the club that splits the difference.

at the beginning of the year, miguel cabrera signed a 1 year $11.3m deal with the tigers to avoid arby.

alfonso soriano lost his arbitration case and made $10m as opposed to the $12m he was seeking a few years ago.

Ah, I see. And say a club like Florida is not willing to give a $10 million, 1 year deal to an up and coming prospect in his 4th year and they do NOT offer him arbitration, is this the only way he can become eligible for free agency before year 7?

[htownbball]

Ah, I see. And say a club like Florida is not willing to give a $10 million, 1 year deal to an up and coming prospect in his 4th year and they do NOT offer him arbitration, is this the only way he can become eligible for free agency before year 7?

well he'd have to be really mashing to earn enough money for them to get rid of him...like 50 homers his rookie year.

they have a few options:

- come to a contractual agreement to avoid arby
- go to arby
- non-tender him, which means they dont even offer him a contract, which makes him a FA
- trade him, which is what they did to miguel cabrera

[Ronny]

I think it would be after the fifth year of the contract.

2 club years, est. $1 mil per =

$48 - $2 = $46 mil

Three arbitration years at $10 mil per (what Ryan Howard got in arbitration) =

$46 - $30 = $16 mil

He is getting $16 mil for his first three free agency years, which I'm going to guess is about a $30 million dollar discount?

If all goes well, though, at the end of the contract he will be in line for one last big free agent deal, in his low 30's.

Hanley Ramirez earned himself a $70 million, 6 year contract in his 4th year (not sure what he earned his first 3 years, going to fabricate those numbers).

Year 1: $200,000
Year 2: $200,000
Year 3: $200,000
Year 4: $439,000
Year 5: $11.666 million
Year 6: $11.666 million
Year 7: $11.666 million
Year 8: $11.666 million
Year 9: $11.666 million
etc.

Whereas Ryan Braun looks something like this:

Year 1: $200,000
Year 2: $455,000
Year 3: $5.6 million
Year 4: $5.6 million
Year 5: $5.6 million
Year 6: $5.6 million
Year 7: $5.6 million
Year 8: $5.6 million
Year 9: $5.6 million

So he stands to make about $11 million more than Ramirez did in his 3rd and 4th seasons, but loses out significantly over the course of 8 years.

[htownbball]

usually these "poor" teams will hang on to them for at least 2 years into their arby years and trade them the year before they become free agents or right before the trade deadline. thats what happened with carlos beltran. however, if they trade them with 1 arby year left (miguel cabrera), they can receive more in terms of prospects via trade.

[Kim]

I think it's hard to turn down 5 millions dollars this year when you're making $200,000. Even if it means over an 8 year period, you'll be making $45mill instead of $55mill, I can understand when a young person doesn't want to wait a few years for financial security.

It's like taking the cash up front option when you play lotto. Well, it's not really like that, but there's a lot one can do with a $10 million 2 year head start.

[King1]

Hanley Ramirez got on 70 million foir 6 years and he may be the third best player in baseball

[A_3PO]

Brilliant move by the player. This guy is set for life having played only one season in the majors. It almost seems unfair but "so be it". $45MM guaranteed!

It could also end up being a brilliant move by the Brewers since they locked him up for 8 years. Time will tell if he's another Albert Pujols or Richard Hidalgo. They are taking a huge risk.

[Kerfeld]

I wonder if Hunter Pence's agent is hammer calling Ed Wade.

[Air Langhi]

Brilliant move by the player. This guy is set for life having played only one season in the majors. It almost seems unfair but "so be it". $45MM guaranteed!

It could also end up being a brilliant move by the Brewers since they locked him up for 8 years. Time will tell if he's another Albert Pujols or Richard Hidalgo. They are taking a huge risk.

Usually the great ones don't worry about this.

[arkoe]

Usually the great ones don't worry about this.

Any pro athlete that doesn't recognize they're a blown knee away from a desk job isn't smart. When the money comes around, you take it.

[A_3PO]

Usually the great ones don't worry about this.
How do you know? Are you a mind-reader?

[msn]

Usually the great ones don't worry about this.
...said the guy whose handle is named after Dan Langhi. :p

[Air Langhi]

Any pro athlete that doesn't recognize they're a blown knee away from a desk job isn't smart. When the money comes around, you take it.

With modern medicine when is the last time a good player started sucking due to injury. It happens with pitchers and most of the time it is mental (Ensberg etc.).

[Air Langhi]

That was a bad decision by braun. He is on pace to hit close to 50hrs this year. He could have got double that I would think. When jennins is getting paid 4 mil braun should get at least 12 mil.

[Major]

That was a bad decision by braun. He is on pace to hit close to 50hrs this year. He could have got double that I would think. When jennins is getting paid 4 mil braun should get at least 12 mil.

Braun isn't a free agent. Jennings was. Without a long-term deal, Braun was going to make about $250,000 this year and next.

[Major]

That was a bad decision by braun. He is on pace to hit close to 50hrs this year. He could have got double that I would think. When jennins is getting paid 4 mil braun should get at least 12 mil.

Richard Hidalgo hit 40 HRs in a year. Daryle Ward hit 20+ in 250 at bats. I'm pretty sure Hidalgo is glad he signed his contract when he did, and Ward is sad that he never got that big contract.

There's only so much money many people need. The tradeoff of going from about $250,000 guaranteed to $40 million guaranteed is sometimes worth a lot more than the extra $40 million he might have made.

[msn]

Braun isn't a free agent. Jennings was. Without a long-term deal, Braun was going to make about $250,000 this year and next.
...and the relative "smallness" of his contract's later years makes him very tradeable should the Brewers go into the toilet again--so he gets his coin, he avoids being an albatross, and the Brewers--if they ever feel like they have to--have something that may bring back pretty decent value. Pretty smart for all parties, I think.

[redgoose]

Braun's teamate Prince Fielder will be doing the exact opposite. It will be interesting in the end to see how this turns out and who comes ahead. He will be taking the low salary years and arbitration when it comes down to it. I'm sure the Brewers would love to lock him up now and make a statement like they did with with Ryan Braun.

The only problem is Scott Boras doesn't play that way and he represents Fielder. He'll be having Prince hold out for the 100 + million dollar contract to the highest bidder, which will not be the Brewers. I kind of feel bad for teams who draft a player and then they sign Boras afterwards. I'm not sure if he was already his agent before the draft, if so say goodbye to possible franchise player.

So 2 opposite strategies. Fielder only loses in the long run if he gets hurt bad but will make probably double what Braun will make otherwise. However, Braun has the money to buy a nice pad and cars now.

[msn]

So 2 opposite strategies. Fielder only loses in the long run if he gets hurt bad but will make probably double what Braun will make otherwise. However, Braun has the money to buy a nice pad and cars now.
If you invest your money right and you take Braun's strategy, you can *still* come out ahead of Fielder in the long run, even if the guy plays 25 years and ends up in the Hall!

[Major]

So 2 opposite strategies. Fielder only loses in the long run if he gets hurt bad but will make probably double what Braun will make otherwise. However, Braun has the money to buy a nice pad and cars now.

Depends - he had a fantastic year last year, but this year so far is extremely mediocre, and very similar to his 2006. If this is the "real" him, then two years from now or whenever he's a free agent, he may not command very much at all. So far this year, he's a below-average first baseman. That's the risk he takes - he could very well go down the Daryle Ward route.

[redgoose]

If you invest your money right and you take Braun's strategy, you can *still* come out ahead of Fielder in the long run, even if the guy plays 25 years and ends up in the Hall!

I'd say you'd need a damn good investor because if Fielder keeps putting up seasons like last year he'll easily sign a $150 million dollar contract. And that's a few years after making 10 million plus in arbitration per year. They'll be a bidding war between the usual North Eastern teams. Remeber, Manny and Big Poppy will be gone by then and the Yankees probably still won't have won a World Series. :cool:

[msn]

I'd say you'd need a damn good investor
Not necessarily. When I said, "invest", I didn't necessarily mean stocks and bonds. Business(es) and real estate, baby.