How does Contract buyout work?

[MaddyMax]

Tim Anderson has agreed to a six-year, $25 million deal with the White Sox, the team announced on Tuesday, thus cementing his place as one of the club's cornerstones for the future. Two option years could take the value of the deal to $50.5 million over eight years, and the contract includes a $1 million buyout.

In this case, how does the buy out work. Can White sox get out of the contract by paying 1 million if they want or do they have to pay reminder of the $25 million owed plus 1 million?

[Chi_archie]

yeah they pay the 1 million buyout before that option season and they do not have to pay the remainder owed

[MaddyMax]

But the 5 year 25 million is guaranteed right...they can get out of that 1 year into the contract by paying 1 million? Basically the buyout option is for optional years at the end of 5 year contract?

[Chi_archie]

But the 5 year 25 million is guaranteed right...they can get out of that 1 year into the contract by paying 1 million? Basically the buyout option is for optional years at the end of 5 year contract?

yes, the 1 million buyout is only available to the team after the first 5 years are done

its pretty common in longer term deals...

here is how Anthony Rizzo's contract looks for instance, with a 2 mill buyout in 2020

23	Chicago Cubs	$750,000	0.168	contracts
24	Chicago Cubs	$1,250,000	1.168	contracts
25	Chicago Cubs	$5,000,000	2.168	contracts
26	Chicago Cubs	$5,000,000	3.168	contracts
27	Chicago Cubs	$7,000,000	4.168
28	Chicago Cubs	$7,000,000
29	Chicago Cubs	$12,000,000
30	Chicago Cubs	*$16,500,000		$16.5M Team Option, $2M Buyout
31	Chicago Cubs	*$16,500,000		$16.5M Team Option, $2M Buyout
Earliest Free Agent: 2020

[Chi_archie]

somtimes agents are able to get option outs for their clients...

here is a genius one for Jason Heyward. the theory is that, if he had been an MVP type player for a few years and other top players were getting 40 million a year contracts. Heyward would be able to opt out and get paid elsewhere

considering how shitty he is, he will OPT IN, and the cubs will be stuck with him and paying ALL that money

20	Atlanta Braves	$400,000	0.000
21	Atlanta Braves	$496,500	1.000
22	Atlanta Braves	$565,000	2.000	contracts
23	Atlanta Braves	$3,650,000	3.000	contracts
24	Atlanta Braves	$4,500,000	4.000	contracts
25	St. Louis Cardinals	$7,800,000	5.000	contracts
26	Chicago Cubs	$21,666,666	6.000	contracts
27	Chicago Cubs	$28,166,667	7.000
28	Chicago Cubs	$28,166,667		Has right to opt out of contract following 2018 season.
29	Chicago Cubs	$20,000,000		Has right to opt out of contract following 2019 season if he has 550 PA that year.
30	Chicago Cubs	$21,000,000
31	Chicago Cubs	$21,000,000
32	Chicago Cubs	$22,000,000
33	Chicago Cubs	$22,000,000
Earliest Free Agent: 2024
$39,078,166	Does not include future salaries ($162.3M)

[MaddyMax]

Thanks for the info.

Wow, that Heyward guy...how did he get that contract without ever having a good year.

[ace7550]

Seriously! I can't believe the cubbies agreed to that. Well, they won a WS. So I guess they are doing something right...

[newguy]

Seriously! I can't believe the cubbies agreed to that. Well, they won a WS. So I guess they are doing something right...

And all accounts were that Heyward was guy in locker room during rain delay in game 7 that got the players heads right and they won. I wasnt a fan but after season it came out he is a really really good locker room guy with a lot of offensive upside.

The numbers don't show his defense stats either. He made a lot of big plays during season.

[krk1030]

And all accounts were that Heyward was guy in locker room during rain delay in game 7 that got the players heads right and they won. I wasnt a fan but after season it came out he is a really really good locker room guy with a lot of offensive upside.

The numbers don't show his defense stats either. He made a lot of big plays during season.

And there is no salary cap, so as long as they are willing to keep spending its not preventing the from getting other players. He's just a very expensive #8 hitter that plays great defense.