From SABR member Eno Sarris at FanGraphs on December 2, 2015:
David Price can opt out of his seven-year, $217 million contract in three years? That’s either terrible for the Red Sox or a boon for the Red Sox, depending on how you think about it.
It’s terrible for the Red Sox!
It’s power in the hands of the player, since it’s a player option. If Price plays well, and the market continues to grow, they’ll have paid $30 million a year for three years and will have to get right back into negotiating with their ace, along with every other team.
If he gets hurt or plays poorly or the market doesn’t perform the same way going forward, they suddenly have to pay yesterday’s going rate for an overpriced, possibly hurt, aging ace… for another four years.
And before you say that it’s great for the Sox to be able to walk away if they feel the market will overvalue their pitcher… they could trade him if the market valued their under-contract ace more than they did. They would have a way to react other than just walking away, and they’d presumably get some sort of return for their asset.
It’s great for the Red Sox!
Read the full article here: http://www.fangraphs.com/blogs/the-value-of-the-opt-out-clause-in-the-david-price-contract/
Originally published: December 2, 2015. Last Updated: December 2, 2015.