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The New York Mets signed Carlos Beltran to play center field for the next seven years. They'll be paying him for the next 14.
New York will not make the final payment on Beltran's $119 million contract until July 1, 2018, according to details of the agreement that were obtained by The Associated Press.
Beltran's deal contains $22 million in deferred salary that will be paid out in the seven years after the contract expires. He will be 41 by the time he receives all the money, which will be paid each July 1 starting in 2012 in yearly installments of $3,142,857 plus interest that will accrue at the rate of 1.7175 percent annually.
Like Pedro Martinez, who signed with the Mets in December, Beltran will get an array of perks as part of the contract, including a hotel suite on all road trips and a 15-person luxury suite for all home games, although he must buy tickets for the suite for any postseason games. In the most unusual clause of the deal, the Mets agreed to lease for Beltran an ocular enhancer machine, a device that throws colored, numbered tennis balls to batters at 150 mph or faster.
New York also agreed not to offer salary arbitration at the end of the contract, meaning the Mets must decide whether to re-sign him by Dec. 7, 2011. Offering arbitration extends the deadline for re-signing until the following Jan. 8.
Beltran's contract calls for his $11 million signing bonus to be paid in four installments: $5 million upon approval and $2 million each this June 15, and on Jan. 15, 2006, and Jan. 15, 2007. He gets a $10 million salary this year, $12 million in each of the following two seasons and $18.5 million in each of the final four seasons, with $8.5 million deferred annually from 2008-11.
The players' association calculated the present-day value of the contract at $115,726,946, using a six percent discount rate (the prime rate plus one percent, rounded to the nearest whole number). For purposes of baseball's luxury tax, which currently uses a 3.62 percent discount rate, the contract is valued at $116,695,898.
Source: AP
New York will not make the final payment on Beltran's $119 million contract until July 1, 2018, according to details of the agreement that were obtained by The Associated Press.
Beltran's deal contains $22 million in deferred salary that will be paid out in the seven years after the contract expires. He will be 41 by the time he receives all the money, which will be paid each July 1 starting in 2012 in yearly installments of $3,142,857 plus interest that will accrue at the rate of 1.7175 percent annually.
Like Pedro Martinez, who signed with the Mets in December, Beltran will get an array of perks as part of the contract, including a hotel suite on all road trips and a 15-person luxury suite for all home games, although he must buy tickets for the suite for any postseason games. In the most unusual clause of the deal, the Mets agreed to lease for Beltran an ocular enhancer machine, a device that throws colored, numbered tennis balls to batters at 150 mph or faster.
New York also agreed not to offer salary arbitration at the end of the contract, meaning the Mets must decide whether to re-sign him by Dec. 7, 2011. Offering arbitration extends the deadline for re-signing until the following Jan. 8.
Beltran's contract calls for his $11 million signing bonus to be paid in four installments: $5 million upon approval and $2 million each this June 15, and on Jan. 15, 2006, and Jan. 15, 2007. He gets a $10 million salary this year, $12 million in each of the following two seasons and $18.5 million in each of the final four seasons, with $8.5 million deferred annually from 2008-11.
The players' association calculated the present-day value of the contract at $115,726,946, using a six percent discount rate (the prime rate plus one percent, rounded to the nearest whole number). For purposes of baseball's luxury tax, which currently uses a 3.62 percent discount rate, the contract is valued at $116,695,898.
Source: AP
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