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Home Maury Brown How Troy Tulowitzki’s Mega-Deal Relates to Derek Jeter Contract Talks

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How Troy Tulowitzki’s Mega-Deal Relates to Derek Jeter Contract Talks PDF Print E-mail
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Written by Maury Brown   
Friday, 03 December 2010 12:03

The New York Yankees and Derek Jeter appear to be closing nearing toward an agreement. We know that the Yankees have offered up a deal of the 2-3 year variety. But, what the total dollar amount will be is still being worked through. The initial talks by the Yankees centered on $15 million a year.

There’s reasons the sides are moving (finally), but one is certainly the 10-year, $157.75 million deal that Rockies shortstop Troy Tulowitzki brokered earlier this week.

A key topic within the Jeter-Yankees talk has been the AAV of any deal for Jeter. As detailed, the average annual value of a contract is the number of years divided by the total contract amount.

Back to the Tulo deal, the AAV (when not factoring in his option year) would be $ 15.775 annually. Over 3 years, that comes to $47.325 million, or $2.325 million over the initial $45 million offer.

It’s believed Jeter wants more.

To steal a quote from Jeter’s agent Casey Close, the “baffling” thing is (and has been said more than once), is there are methods to breach the gap. Any performance driven provision that would add additional years has to be based on factors such as plate appearances or games played. Tying it to other stats is not allowed within the framework of the CBA.

But, there are other ways to incentives Jeter, at least in terms of bonuses.

Since he won the Gold Glove this year, ties a sizeable bonus to that or a Silver Slugger award. He’s bound to go to the All-Star Game (again), so put in a clause that gives him a bonus there. On top of that, you could just add in a signing bonus of some amount above the Troy Tulowitzki AAV driven base salary figures.

This isn’t rocket science. Player contracts are stuffed full of boilerplate provisions like this every day. In that, it’s amazing that what has seemed like a New York Yankees version of pulling teeth could be dealt with with such relative ease. If the signing doesn’t happen by Sunday, at least the Baseball Winter Meetings may have some additional excitement, Unless, of course, clearer heads don’t prevail and the sides are still in a stalemate come Friday.

Maury BrownMaury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey, as well as a contributor to FanGraphs and Forbes SportsMoney. He is available for hire or freelance. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.

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