As rumored last night, the Tampa Bay Rays signed James Shields to a long term contract:

The 26-year-old right-hander, who has less than two full seasons of experience in the majors, agreed Wednesday to a $11.25 million, four-year contract.

Shields' deal includes three team options that could make it worth about $38 million over seven years. Performance bonuses could boost the value to approximately $44 million.

"This signing further signifies our commitment to building and sustaining a championship level team," Rays executive vice president of baseball operations Andrew Friedman said. "We feel like Jamie is the kind of player and person who can help lead us to that goal."

Friedman said Shields' "talent, work ethic and character" were factors in the decision to take the unusual step of negotiating a multiyear deal even though the club's No. 2 starter was two seasons away from becoming arbitration-eligible and five years from free agency.

Note that the Rays only buy out the first two years of arbitration with this contract. The options are big, however, giving Shields incentives to pitch his best during the contract. The Rockies are doing the same with Tulowitzki, reportedly making his option year $15 million, which is a reasonable amount to expect from the free agent market at that point. It's a good way to structure the contracts, with the big pay day only kicking in if the player performs well.