Derek Jeter will make a minimum of $51 million and a maximum of $65 million depending on how he plays over the next four years. His base salary for the first three seasons comes in at $16 million. In that regard, the Yankees only budged a little bit. If Jeter doesn’t play a fourth season, there is a $3 million buyout, however. So he’s going to make $51 million over the next three years. If the option is taken, he’ll get $8 million for the fourth years, bringing the average value under $15 million, but incentives can bring that up another $9 million. I’m sure the Yankees would be please to have Derek reach those incentives.
This is an unusual contract for New York, as they normally don’t include incentives in contracts. They’re overpaying, but, the Yankees now know where they stand going into the winter meetings.
So basically with incentives and buy out of 4th year, Jeter can make 60 million over 3 years. He makes the minimum only if he fails to hit the incentives due to age related decline.
Thats sounds like a smart offer to a player whose projection is uncertain. No pay cut if there is no age related decline or injury. If there is, Jeter will be overpaid at 16 million, but the overpay is for the legacy and brand, and the Yankees can afford it.
I am sure the joy Yankee fans feel is dampened by A-Gon going to Boston. Maybe Cliff Lee will have 2nd thoughts about coming to the AL East if the Red Sox sign Werth or Crawford as well.