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Saturday, April 09, 2016

Your 2016 Giants: Belt Signs Five Year Extension for Total 6 years, $79M

News per Pavlovic (who appears to be the one who broke the news, saw his Tweet first) and Baggarly.

  • Extends the $6.2M contract he signed to avoid arbitration this season.  At that time, Giants FO said it was a springboard to a longer term deal.
  • Sets 2017 salary at $8.8M, covering his last arbitration year.  $6M gets paid beginning of year as signing bonus (does anyone know what accounting advantage teams get from doing this?)
  • Then from 2018 to 2021, four years at $16M each
  • Total:  6 years, $79M, just edging his Brandon buddy's $75M 
  • Limited no-trade clause specifying 10 teams that he can't be traded to
Covers him to his 33 YO season.  He's says he's happy to be able to stay here with the rest of the core of the team.  Gave the team all the credit for his maturation as a ballplayer, and stated his appreciation for the organization.  

Evans also noted the fan and media speculation of Posey playing at 1B eventually.  He stated that there has not been any internal discussions of that, that Posey is considered the quarterback behind the plate and a major reason why pitchers like pitching for the Giants.  And thus no internal talk about moving Belt to another position.  

ogc thoughts

I've been wanting Belt to be signed to such an extension for a long while now.  I've been a big believer since he busted out with that first great MiLB season, and been in the middle between those who thought he walked on water (which was off, he still had things to earn that he eventually figured out after a couple of years) and those who thought he was crap (which was way off, he's been one of the top firstbasemen even while trying to figure things out or being on the DL so much).  

People kept on referring to the Freeman contract of 8 years, $135M as being his target, but given what he got, that clearly was not what he was aiming for, as he was about $50M short of that.   He didn't even get what Pence got.  I was off too, I thought he wanted more to account for his immense (still) potential.  He's getting roughly what a 2-WAR average player gets (and that don't even account for the premium that 1B seems to get in contracts in prior analysis).  

I still think that he can be a Votto-lite player:  gold glove defense at firstbase, good hitter who gets a high batting average, high OBP, high SLG, and thus high OPS, along with a good amount of stolen bases as well.  So I think that this deal is a bargain, from the viewpoint of $ and sense.  Not sure why anyone would have a problem with Belt, so I'm just glad that management signed him.  Now we got most of our core signed to 2021, only Bumgarner is not controlled to then, I think his last option is in 2019 (time for the Giants to work on an extension with him;  perhaps it could be in the works, he just changed agents, choosing the same agency that 

But that's the way these deals work for young players, as they trade the potential of making bigger money as a free agent by signing a contract that sets them up for life, especially to be able to stay with players and manager/coaches and front office personnel who they like and enjoy being with.   It's a good trade off for both sides.  And I'm just happy Belt is around as part of the core for a long time.

5 comments:

  1. with the exception of injury, seems like a bargain for the giants. Who knows where contracts will be going by 2021. He may end up with some re-negotiations.

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  2. OGC -

    Per your question about signing bonuses: I wouldn't be surprised if it's simply a player-oriented benefit. You're taking care of your own, and a huge up-front signing bonus (just as in a business/company scenario, common for engineers & well paid upper management) gives the player/employee an immediate financial flexibility to do as they please and decide how they want to upgrade their life (if money can, in fact, do so.. ;). For the company, they take a hit unloading cash assets all at once, but willingly do so to gain the services & loyalty of their employee investment.

    I think the Giants have shown a penchant for going above and beyond to take care of their players & front office personnel - and this is likely just another instance of that philosophy. It's one of the reasons you can practically be assured the Giants will handsomely reward Madison Bumgarner for his services, even if he's totally fallen off by 2020.

    For the technicalities, I have seen nothing to indicate a bonus changes anything regarding the CPA and how team salary is calculated per year - since it's an average contract value calculation. Would be interested, just as you are, whether other folks had noticed anything differently (though we'd be seeing teams attempt to game that system already, and I have not seen that with bonuses.)

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    1. The team gets no benefit, I believe, but the signing bonus may be taxed differently for the player if he isn't for tax purposes a resident of the state where the ream that employs him is located. Belt pays California state taxes on income he gets from the games he plays in California (SF, LA, SD) but his signing bonus is taxed according to the code in whatever state he's a legal resident of (Texas? Has he moved to Arizona?).

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    2. Interesting, did not know that's how bonuses are taxed differently, makes a lot of sense.

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