The White Sox are declining their club option on right-hander Liam Hendriks, per Jon Heyman of The New York Post. Instead of retaining him for 2024 with a $15MM salary, they will pay him a $15MM buyout but spread over the next ten years in annual instalments of $1.5MM. The righty underwent Tommy John surgery in August and is likely to miss the 2024 season.
Hendriks, 35 in February, signed with the Sox going into 2021. The three-year deal came with a three-year, $54MM guarantee. He would make $39MM over the first three years, with the $15MM option/buyout for 2024. He continued to pitch well over the first two years of the deal, racking up 75 saves over those two seasons with a 2.66 ERA, 39.4% strikeout rate and 4.6% walk rate.
But 2023 provided Hendriks with some significant challenges. He was diagnosed with non-Hodgkin’s lymphoma in the offseason and had to miss the start of the year undergoing treatment. By the end of April, he was cancer free and began ramping up for a return to the club. He was activated in late May, making five appearances before landing on the injured list due to elbow inflammation, which eventually led him requiring Tommy John surgery.
Since he’s likely to miss the upcoming campaign, it’s understandable that the Sox would take the buyout. Though it’s the same amount as the salary of the option, it’s easier to pay it over 10 years than in one, especially with inflation reducing the value of currency over time. Also, there’s no injured list between the World Series and Spring Training, meaning Hendriks would require a roster spot all winter if the option were picked up. By taking the buyout, the Sox free up a spot for the coming months.
Now Hendriks will head to the open market and be free to sign with any club. Though he still has a lengthy rehab process in front of him, players in this situation often sign two-year deals. The players gets some cash to cover the rehab process while the club gets control over one post-rehab season.
Righty Tommy Kahnle signed one such contract when he and the Dodgers agreed to a two-year deal going into 2021. Kahnle was guaranteed $4.75MM plus incentives. He didn’t have the same track record as Hendriks and that winter’s market was generally deflated after the lost revenues of 2020, so it seems fair to expect Hendriks to be able to top that guarantee.
Seems like they might as well have picked it up and seen if they could get a little value for the $15M late in the season since they’re paying they whole sum either way
$1.5M in 10 years won’t be worth as much as it is now, so they’ll technically save some money by spreading it out.
It’s the Bobby Bonilla installment plan, although without interest. It’s actually a much better deal for the White Sox.
Assuming he has no value next year
How’s that’s. The remaining fan base loses interest. They were rooting for him over the cancer treatment. It’s not like Hendricks is a starter growing 9 innings.
lemonlyman: And saving money is Reinsdorf’s motto. If anyone thinks that cheapskate is going to pick up TA’s $14m option, you haven’t been paying attention. Why bother when you can have a 40-man roster of dfa’s? Cheap. All Reinsdorf has to do now is pay Robert and Cease until he no longer has control of them. Like Liam, it’s better to let them go than pay them.
Jerry would rather pay that $15M over 10 years rather than 1.
I still think he gets a 2 year deal from the Sox so he can rehab and come back in 2025.
sacamano: Are you talking about the RED Sox? Because Reinsdorf isn’t going to pay Hendricks anything above league minimum. Actually, I’m kind of glad Hendricks is away from the Sox. Like Abreu, him and TA will get to see how much better it is playing for an owner that actually wants to win. The grass is MUCH greener away from Chicago.
Avenger must be fun at parties
Mets fans collectively breathe a sigh of relief for Bobby Bonilla Day.
Every team pays deferrals you clown
No they don’t
Yes they do
Not every team has deferrals
Kei Igawa says Hello!
Thank goodness they didn’t defer Jacoby Ellsbury!
Unfortunate but understandable. Perhaps they can work out a new deal recognizing he will miss all of 2024.
Lord99: This isn’t Ohtani and whoever he signs with. This is one of the best closers in the game and Reinsdorf, and Reinsdorf isn’t going to pay a player for one rehab year plus one rebound year. Money doesn’t leave Reinsdorf’s big fat wallet.
Avenger,
Watch the White Sox pick up Tim Anderson’s 14 million dollars team option lol
Dude aint going back to the White Sox, gotta get out of that hell hole. He’ll go somewhere that will give him a chance to win the closer role in ’25. Probably the NL. He could use fresh hitters to fool after stomping the AL for the last few years.
Says the lad stuck in Cleveland?
Incoming ignorant statements from people who have 0 understanding of finance
I have the popcorn ready.
White Sox did him Hendriks a favor. He deserves to play for a better team than the hot mess White Sox…..
They did right by him. $1.5M will deflate by half its value or more over 10 years, but getting the equivalent of a modern day $1M a year in extra salary or whatever it’d work out to is a great retirement package if this is ig for him.
That said, as others mentioned I could see like 2 years/$12M guarantee that could be worth as much as 3 years/$25M or something.- $2M in 2024 to cover him and $8M in 2025 w/ a $2M buyout on an option for $15M in 2026.
Considering the structure of his last deal, the way teams are recently very comfortable giving guys 2 year bounce back deals with a low base salary for the first year, a nominal salary for the second year and an option at close to market value for a third year, I think Hendricks could walk away from that $15M option getting declined with a guaranteed income of at least $27M and as much as $40M over the next 10 years. Not a bad AAV lol.
People talking about why not seeing if he has any value first. He’s likely to miss the full season and even likely in a best case scenario wouldn’t likely be back until after the trade deadline. As others stated, as silly as it sounds to pay a 15 million salary as opposed to a 15 million buyout, because of it being spread out over 10 years they save money. There’s likely be zero trade interest. Even if he signs a deal this offseason, it’ll have been because the team signed him to a two year deal with next season in mind, not this one.
Almost 35 years old. Not going to get a large sum for a potential 2 year deal with him missing 2024. He also has a huge incentive to sign any major league two year deal offered- he has just over 8 years service time. He can cash in easily by accepting any two year deal for minimum pay in 24 and two million in 25. Even if never pitches again would give him a full pension plus the 1.5 mil a year for ten years the White Sox are going to pay him will fill his pockets in retirement. He will sign anything that is a two year major league deal. Be foolish not to.
Given the immense popularity of Liam and Kristi in Chicago and their appreciation for how the club supported him through his recovery from cancer and support for their many social and charitable initiatives, could totally see a role as a club ambassador if his career comes to an end, as well as an incentive laden contract for 24-25 on top of the $15 mill. His heroic alas short lived return sends chills to this day.
I have to assume the people saying this is a bad decision are missing the part where, ya know, Hendriks isn’t going to pitch next year.
The choice basically became between paying him $15 million now and taking out an interest-free loan… which you do 100% of the time.
Honestly this is great for Liam. He gets a cushy little deferment for the next 10 years, and whatever difference gets lost to inflation he can likely make up on a 2 year deal as speculated.