1. #1
    MaddyMax
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    How does Contract buyout work?

    Tim Anderson has agreed to a six-year, $25 million deal with the White Sox, the team announced on Tuesday, thus cementing his place as one of the club's cornerstones for the future. Two option years could take the value of the deal to $50.5 million over eight years, and the contract includes a $1 million buyout.

    In this case, how does the buy out work. Can White sox get out of the contract by paying 1 million if they want or do they have to pay reminder of the $25 million owed plus 1 million?

  2. #2
    Chi_archie
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    yeah they pay the 1 million buyout before that option season and they do not have to pay the remainder owed

  3. #3
    MaddyMax
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    But the 5 year 25 million is guaranteed right...they can get out of that 1 year into the contract by paying 1 million? Basically the buyout option is for optional years at the end of 5 year contract?

  4. #4
    Chi_archie
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    Quote Originally Posted by MaddyMax View Post
    But the 5 year 25 million is guaranteed right...they can get out of that 1 year into the contract by paying 1 million? Basically the buyout option is for optional years at the end of 5 year contract?
    yes, the 1 million buyout is only available to the team after the first 5 years are done

    its pretty common in longer term deals...

    here is how Anthony Rizzo's contract looks for instance, with a 2 mill buyout in 2020

    Year Age Tm Salary SrvTm Sources Notes/Other Sources
    2013 23 Chicago Cubs $750,000 0.168 contracts
    2014 24 Chicago Cubs $1,250,000 1.168 contracts
    2015 25 Chicago Cubs $5,000,000 2.168 contracts
    2016 26 Chicago Cubs $5,000,000 3.168 contracts
    2017 27 Chicago Cubs $7,000,000 4.168
    2018 28 Chicago Cubs $7,000,000
    2019 29 Chicago Cubs $12,000,000
    2020 30 Chicago Cubs *$16,500,000 $16.5M Team Option, $2M Buyout
    2021 31 Chicago Cubs *$16,500,000 $16.5M Team Option, $2M Buyout
    Earliest Free Agent: 2020

  5. #5
    Chi_archie
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    somtimes agents are able to get option outs for their clients...

    here is a genius one for Jason Heyward. the theory is that, if he had been an MVP type player for a few years and other top players were getting 40 million a year contracts. Heyward would be able to opt out and get paid elsewhere

    considering how shitty he is, he will OPT IN, and the cubs will be stuck with him and paying ALL that money

    ear Age Tm Salary SrvTm Sources Notes/Other Sources
    2010 20 Atlanta Braves $400,000 0.000
    2011 21 Atlanta Braves $496,500 1.000
    2012 22 Atlanta Braves $565,000 2.000 contracts
    2013 23 Atlanta Braves $3,650,000 3.000 contracts
    2014 24 Atlanta Braves $4,500,000 4.000 contracts
    2015 25 St. Louis Cardinals $7,800,000 5.000 contracts
    2016 26 Chicago Cubs $21,666,666 6.000 contracts
    2017 27 Chicago Cubs $28,166,667 7.000
    2018 28 Chicago Cubs $28,166,667 Has right to opt out of contract following 2018 season.
    2019 29 Chicago Cubs $20,000,000 Has right to opt out of contract following 2019 season if he has 550 PA that year.
    2020 30 Chicago Cubs $21,000,000
    2021 31 Chicago Cubs $21,000,000
    2022 32 Chicago Cubs $22,000,000
    2023 33 Chicago Cubs $22,000,000
    Earliest Free Agent: 2024
    Career to date (may be incomplete) $39,078,166 Does not include future salaries ($162.3M)

  6. #6
    MaddyMax
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    Thanks for the info.

    Wow, that Heyward guy...how did he get that contract without ever having a good year.

  7. #7
    ace7550
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    Seriously! I can't believe the cubbies agreed to that. Well, they won a WS. So I guess they are doing something right...

  8. #8
    newguy
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    Quote Originally Posted by ace7550 View Post
    Seriously! I can't believe the cubbies agreed to that. Well, they won a WS. So I guess they are doing something right...
    And all accounts were that Heyward was guy in locker room during rain delay in game 7 that got the players heads right and they won. I wasnt a fan but after season it came out he is a really really good locker room guy with a lot of offensive upside.

    The numbers don't show his defense stats either. He made a lot of big plays during season.

  9. #9
    krk1030
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    Quote Originally Posted by newguy View Post
    And all accounts were that Heyward was guy in locker room during rain delay in game 7 that got the players heads right and they won. I wasnt a fan but after season it came out he is a really really good locker room guy with a lot of offensive upside.

    The numbers don't show his defense stats either. He made a lot of big plays during season.
    And there is no salary cap, so as long as they are willing to keep spending its not preventing the from getting other players. He's just a very expensive #8 hitter that plays great defense.

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