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Need help understanding baseball rookie contracts

Posted on 7/30/14 at 12:20 pm
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26586 posts
Posted on 7/30/14 at 12:20 pm
I understand a large component of a coveted rookie contract is upfront money. Take Kevin Gausman last year for instance, whose contract "includes a 4.32 signing bonus."

So as I understand it, Gausman gets $4.32 million unless he violates terms of the agreement. Is this depreciated over the length of his contract or given as a lump sum?

Additionally, looking at Baseball Reference, Gausman's salary is $502,000 for the 2014 season. I presume this is in addition to is bonus money like other sports contracts. One of my questions is, Gausman is not available for pre-artibration until 2017, not FA until 2020.

Thus, say Gausman has a breakout year next year and wins 15 games. When 2016 comes around, would Baltimore consider signing him to a new contract to lock him up long term, or is that even allowed/considered, in a pre-arbitration period?
This post was edited on 7/30/14 at 12:22 pm
Posted by KosmoCramer
Member since Dec 2007
76556 posts
Posted on 7/30/14 at 12:24 pm to
quote:

When 2016 comes around, would Baltimore consider signing him to a new contract to lock him up long term, or is that even allowed/considered, in a pre-arbitration period?


They wouldn't want to and he wouldn't expect that.

It's not like he could hold out for 5 years
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