Friday, March 29, 2013

Verlander Extended through 2020


     Justin Verlander is one paid man. About 15 minutes after a very cryptic tweet, the Detroit Tigers announced that the team and Verlander have agreed to a 7 year contract extension worth $180 million. This makes him the highest paid pitcher in the history of the game as it is $5M more than the 7 year $175 million deal signed by Felix Hernandez this winter. The Tigers also gave him the $200 million mark by creating an 8th year on a vesting option basis. That means that if he hits a certain performance marker he will get that eighth year guaranteed (EDIT: He must finish top 5 in 2019 Cy Young voting for year 8 to be guaranteed). This is a historical deal and ensures that Justin Verlander will be a Tiger for life. This is an appropriate time for all of you Tiger fans to pause for a moment and embrace how lucky you are to have a supportive owner in Mike Illitch. He really is committed to giving Detroit a ring whether it is during his lifetime or after.

What does this mean for the Tigers?

     As I suggested in my earlier post, the Tigers extended Justin Verlander with a large extension which will make him baseball’s higher pitcher.  The big difference is that they didn’t choose to inflate his strategy over the next two years to make the back end less costly.  I still maintain that he is worth more now, then he will be in 2019, but that’s a different discussion for a different day.

     As it stands under the parameters of this contract, Justin Verlander will make $40 million over the next two years. For years 2015, 2016, 2017, 2018 and 2019 he will make a combined $140 million for an annual average value of $28 million dollars a year. With this deal, unless the Illitch family decides they want to spend like the Yankees or Dodgers, it means that this year will likely be Max Scherzer’s last in Detroit.  There is no way I see that the Tigers can afford to keep him around when he hits free agency as he will command a deal probably around 17-20 million dollars per year. No team has that much to invest in their rotation. With that being probable, look for Detroit to deal Max after the 2013 season to maximize the return they can get for him via trade.  This also allows Drew Smyly to step in and fill his rotation slot. 

     I firmly believe that keeping Rick Porcello was a huge key to making the Justin Verlander extension possible and worth the dollar amount it cost the Tigers.  It made Max Scherzer leaving town a tough, but manageable pill to swallow. A rotation with Rick Porcello and Drew Smyly has depth when paired with Verlander, Anibal Sanchez, and Doug Fister. Trading Porcello, and then signing Verlander to the extension would have made the transition into the post-Scherzer era fairly rocky.

 Verlander’s Side:

     This is what Justin Verlander wanted all along.  He wanted a chance to be the first $200 million pitcher, and the Tigers gave him that. He also wanted to make sure he was the highest paid pitcher in history; the Tigers gave him that as well.  All along, I believe his seemingly contradictory comments were all a ploy by him and his agency to try and speed up extension talks. Justin Verlander wanted this deal and the peace of mind as soon as possible.  He never wanted to leave Detroit, and I’m not convinced he ever would, but he threw out the quote that he thinks free agency would be fun to put doubt in the front office’s mind to speed up the process.  It worked beautifully. He got what he wanted, the Tigers locked up maybe the greatest pitcher of the last 20 years for his career, and the fans are ecstatic.

     In the end, this deal is a win for both sides. It makes sense from the team’s perspective and from Verlander’s. Tigers fans, look forward and soak up the rest of Verlander’s career in your Tigers’ uniform.  It will be a fun ride, and every time he pitches, history might happen.  It’s a great day for baseball fans in Michigan. 

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