Smoltz clarification

Smoltz signs two-year contract with Braves |

The story that broke said that Smoltz signed an extension through 2006 with an option for 2007. That seemed so odd that I originally typed that it was through 2007 with an option for 2008. I then “corrected” that, but my instinctive reading was right; Smoltz is signed for the next three seasons with an option, though the other terms (other than that he’ll make less this season and his per-start bonus clause was cut) weren’t disclosed. I assume that this deal was what was holding up the Hudson deal — and maybe a deal to come.

7 thoughts on “Smoltz clarification”

  1. Here are the terms:
    Smoltz received a $6 million signing bonus and will be paid $6 million in 2005. He will earn $8 million in 2006, and the Braves have an $8 million club option for 2007.


  2. Wow, so does anyone know how much money, after getting Hudson, restructuring Smoltz’s dealm, and trading Marrero, w’re left to get an outfielder and another relief pitcher?

  3. A $6mil signing bonus? That seems awfully odd. I wonder why they structured their books that way… do you think that the Braves had money left over from this past season? I just don’t get it.

  4. Signing bonuses have one real impact beyond the obvious of changing the timing of when a player is paid. Under the new CBA all signing bonuses, regardless of when they actually get paid, for purposes of luxury tax will be prorated equally over the length of the contract. He may be getting a 6m bonus now a 6m contract the next season and an 8m contract in ’07, but for luxury tax, he will count as 10m for both ’06 and ’07. That is on top of the, I believe, $12.5m he counts as for ’05.

  5. I think the signing bonus is a result of the Players Association rules about contracts. Players aren’t allowed to let teams out of money that’s been agreed to in a contract. They don’t want players to deflate the market under any circumstances. This is part of the reason A-Rod din’t go to the Red Sox — he agreed to dump some of his monster contract but the union wouldn’t let him. So, for example, Smoltz can’t agree to take less than the $12 million already in his contract for 2005. So the $6 million salary and the $6 million bonus add up to his original salary.

    Now, I don’t know why it wasn’t just a $12 million dollar salary for next year, unless they can defer the bonus.

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