When the Yankees and Derek Jeter agreed to their new contract, we heard about a deal that included contract incentives and deferred money, but weren’t quite sure how everything would work. Thankfully, Ken Davidoff has the details (no subs. req’d). Jeter will earn $15M in base salary in 2011 with $2M being deferred, $16M in 2012 (another $2M deferred), and then $17M in 2013 ($3M deferred). That’s the easy part.
The incentives can be triggered in any season covered by the deal, including the player option for 2014, though the salary increase will only be applied to that 2014 season. Jeter would get $4M for winning MVP, $2M for finishing second through sixth in the MVP voting, $1.5M for a Silver Slugger, and then $500,000 each for a Gold Glove, LCS MVP, and World Series MVP. The incentives are capped at $9M, however. He could win MVP, Silver Slugger, Gold Glove, LCS and World Series MVP in all four years of the contract, but he’d still only take home $9M extra.
It seems like a team friendly deal on the surface since Jeter is unlikely to reach any of the MVP-based incentives (he has just two top six MVP finishes in the last eleven seasons), but it’s still an overpay in terms of expected production. Either way, it could have been worse. A lot worse.