Derek Jeter's contract: A breakdown
Yankees shortstop Derek Jeter addresses the media after he agreed to a $51 million, three-year contract, which also includes an $8 million player option for 2014. (Dec. 7, 2010) Credit: AP
We interrupt our Cliff Lee/Yankees-Red Sox drama to bring you a little information on Derek Jeter's recently signed contract.
You knew that Jeter was guaranteed four years and $56 million, if he so desired, and that he could increase that to as much as $65 million by attaining certain incentives.
Now, here's precisely how it all shakes out:
1) In 2011, Jeter will earn $15 million, of which $2 million is deferred without interest.
2) In 2012, Jeter will earn $16 million, of which $2 million is deferred without interest.
3) In 2013, Jeter will earn $17 million, of which $3 million is deferred without interest.
4) The 2014 player option is for $8 million, with a $3 million buyout if Jeter opts for free agency. He can get up to $17 million by attaining any of these bonuses from 2011 through 2014 (so in other words, even in 2014, he can start with an $8 million salary and still wind up with more).
a) A $4 million bonus for winning AL MVP.
b) A $2 million bonus for placing second through sixth in the AL MVP voting.
c) A $1.5 million bonus for winning a Silver Slugger award.
d) A $500,000 bonus for winning a Gold Glove.
e) A $500,000 bonus for winning the League Championship Series MVP.
f) A $500,000 bonus for winning the World Series MVP.
For clarification's sake, Jeter can max out at $9 million in bonuses. So if he won the AL MVP in 2011, 2012 and 2013, he'd nevertheless top out at $9 million, even though that would add up to $12 million.
My analysis: This is a team-friendly structure. Jeter is very unlikely to reach that $17 million figure. He's unlikely to get even halfway from $8 million to $17 million (that's $12.5 million, for those of you scoring at home).
OK, we now resume your regularly scheduled programming.
