Giant Cueto

The Giants agree to a contract with Johnny Cueto:

Cueto is getting $130 million over six years with a club option for a seventh year, but the right-hander is able to opt out after two years. The deal is pending a physical.

The opt-outs are big this year. I wonder if the contract is front loaded as well?

It appears the value of the opt-out to the team is quite large. There’s good reason to believe that Cueto is worth closer to $30 million a year. I suspect his spotty performance with the Royals might have cut into his value. So the opt-out is worth about $8 million a year to the Giants. Note that Cueto doesn’t have to tank to not opt out. If he drops to a three WAR pitcher from a four WAR pitcher, he’s still good, but probably won’t get a boost from going to free agency again. Meanwhile, the Giants very well may collect some residual value from Cueto’s two season in San Francisco.

from baseballmusings.com http://ift.tt/1UrarHG