The deal recently struck between Nick Castellanos and the Reds will include some notable deferrals, per Ken Rosenthal of The Athletic (via Twitter). The annual payouts won’t be pushed too far into the future, but will come on a delayed schedule that should assist the team with managing its payroll.
Here’s the full structure of the four-year, $64MM contract, per the report and previously reported information
- 2020: $16MM salary with $10MM payable during season and $2MM payments on January 15, 2021, February 1, 2021 & January 15, 2022
- 2021: $14MM salary with $10MM payable during season and $2MM payments on January 15, 2022 & January 15, 2023
- 2022: $16MM salary with $12MM payable during season and $2MM payments on January 15, 2023 & January 15, 2024
- 2023: $16MM salary with $12MM payable during season and $2MM payments on January 15, 2024 & January 15, 2025
- 2024: $20MM mutual option ($2MM buyout)
Add it all up, and this is the full guaranteed payout schedule for Castellanos:
- 2020: $10MM salary
- 2021: $10MM salary + $2MM (1/15/21) + $2MM (2/1/21)
- 2022: $12MM salary + $4MM (1/15/22)
- 2023: $12MM salary + $4MM (1/15/23)
- 2024: $2MM buyout (or $20MM salary) + $4MM (1/15/24)
- 2025: $2MM (1/15/25)
It should be noted: once earned, a given season’s salaries will still be paid by the team even if Castellanos opts out. He has two opportunities to do so, after each of the first two seasons of the contract. Should he opt out, Castellanos would sacrifice the ability to earn additional money under the contract but not the right to receive the deferred payment for what he had already earned.
This deferral schedule is a bit complicated, but doesn’t wildly alter the value of the contract. By comparison, some other contracts — for instance, Max Scherzer’s agreement with the Nationals — have pushed the earnings much further into the future and required rather more significant adjustments to assess the true cost of the signing.