More details from MLBTR
The Blue Jays finalized their five-year free agent deal with Anthony Santander this week. The deal came with a $92.5MM guarantee but was known to include heavy deferrals. Sportsnet’s Ben Nicholson-Smith first reported on Monday that MLB calculated the contract’s net present closer to $70MM.
Shi Davidi of Sportsnet reported more specifics on the contract structure this afternoon. The NPV landed just under $68.6MM, which comes with an approximate $13.7MM annual competitive balance tax hit. The deal includes $61.75MM in deferred money. The specific layout is as follows:
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$13.5MM signing bonus ($6.75MM deferred)
$13.5MM salary in 2025 ($10MM deferred)
$16.5MM salary in 2026 ($10MM deferred)
$16.5MM salary in 2027 ($10MM deferred)
$14.75MM salary in 2028 ($10MM deferred)
$12.75MM salary in 2029 ($10MM deferred)
$15MM club option for 2030; guaranteed a $5MM buyout, which would be completely deferred
Santander has an opt-out after the ’27 season. He’s owed $60MM over the first three years, so he’d be weighing whether to leave two years and $32.5MM ($25MM of which would be deferred) on the table. If he opts out, Toronto can override that by guaranteeing his 2030 salary at $17.5MM. That would also escalate Santander’s salaries for the 2028 and ’29 seasons to $17.25MM and $15.25MM, respectively. The maximum value is $110MM over six years — which would only be reached if Santander opts out and the Jays override it.
The Jays are into luxury tax territory. They’re taxed at a 20% rate on spending between $241MM and $261MM. They’re close to the $261MM cutoff. Adding Santander likely comes with around a $3MM tax hit for the upcoming season. Toronto would be taxed at a 32% clip for spending between $261MM and $281MM.