PEORIA, Ariz. — Eric Hosmer’s eight-year, $144 million agreement with the Padres represents more than a record deal for one small-market franchise. Among long-term contracts that have included an opt-out — an increasingly popular clause that, in many cases, grants the player the advantage — it appears to be the most heavily front-loaded in recent memory. And, should San Diego benefit, the creative structuring could encourage other teams to pursue a similar blueprint.
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The pact, reached Saturday and soon to be made official, ties the bulk of the $144 million to Hosmer’s remaining prime. According to people with knowledge of the terms, the 28-year-old first baseman will receive a $5 million signing bonus on top of $20 million annually through 2022. At that point, he could opt out of his contract and re-enter free agency. Exercising the clause would amount to a sizable bet — Hosmer is owed $13 million in each of the final three years of the contract — but depending on what transpires between now and then, it could be a bet well worth taking.
Accounting for inflation, Hosmer, even at 33, could seek something well north of $39 million over three years — the remaining balance on his contract after the fifth season. Team officials have told Hosmer they would love to see him end his career in San Diego, but the lure of opting out, in hopes of one final payday, could be strong.
Essentially, Hosmer is about to secure a five-year, $105 million deal that contains insurance for both sides. If those first five years do not go as well as hoped, he still is guaranteed another $39 million, a reasonable sum in the Padres’ eyes. The future remains life’s biggest mystery, but there is at least a decent possibility Hosmer passes on that policy and takes his chances elsewhere.
Had Hosmer been willing to accept five years and $105 million — no strings attached — the Padres would have signed him weeks ago. However, given that price point, other serious suitors would have emerged. Hosmer’s agent, Scott Boras, began the offseason soliciting nine- and, some say, 10-year proposals worth in the neighborhood of $200 million. Only the Padres and the Royals, Hosmer’s former club, submitted bids that came anywhere close. With the vast majority of position players already in spring training, and with the free-agent market depressed by a glut of cautious teams, Boras settled for what could yet be called a fair treaty.
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Reversing course from the back-loaded deals that bit them in 2015, the Padres owe Hosmer $105 million over the next five seasons — a franchise-record annual average value of $21 million. They expect his leadership and production will accelerate their rebuilding process, possibly moving the timeline for contention up from 2020. They anticipate his athleticism and conditioning will slow his aging process relative to other players.
The Padres believe they are not mortgaging a chunk of their future, which turned out to be the case after they acquired Matt Kemp and James Shields. Both Kemp and Shields were jettisoned in 2016, but San Diego continues to pay for those players in 2018.
Rather, the Padres see Hosmer as a worthwhile investment on and off the field. In terms of finances, his signing will not raise the Padres’ projected payroll beyond the $90 million range, and a few other commitments will come off the books next year. The lower salaries in the final three seasons of his contract could provide flexibility to pay arbitration-eligible players at that juncture.
Hosmer’s opt-out clause leaves the door open for even more freedom to spend several years from now. Other contracts with opt-outs, at least from clubs’ perspectives, have not been as favorable. Recent deals that include such a clause typically have been back-loaded or somewhat flat. Teams have faced losing players who perform well early in contracts, or being saddled with those who do not.
Cubs outfielder Jason Heyward, for instance, can opt out after 2018, the third year of an eight-year, $184 million contract. To date, Heyward has disappointed, making him unlikely to return to the open market. The Cubs owe him $106 million from 2019-23, plus a $20 million signing bonus payable in four installments from 2024-27. Had Heyward played like an All-Star, the Cubs might be worried about the pull of the open market.
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The Padres’ maneuvering in negotiations with Boras might one day be viewed as prescient. If Hosmer fails to deliver, as more than a few outside observers have warned he will, the deal will simply be seen as another mistake. Team executives, meantime, have discussed Hosmer for months — conversely, there was limited time to study scenarios involving Kemp and Shields — and believe their faith is well-placed.
Myers hails Hosmer acquisition
The Padres player directly impacted by Hosmer’s acquisition reported to camp wearing a smile. When approached during the winter, first baseman Wil Myers did not hesitate in agreeing to a potential move to the outfield. Sunday, he publicly broadcast his approval.
“I do love first base,” said Myers, whose franchise mark for a contract (six years, $83 million) is on the verge of being shattered. “It’s something that I really enjoy playing, but I would rather have a guy like (Hosmer) here than to play first base.”
Myers, whom the Royals drafted a year after Hosmer’s selection, briefly played with Hosmer in Kansas City’s minor league system. This, though, will not be their first spring training together.
“The times I’ve talked to (Hosmer), the times we’ve hung out, he’s been a great guy,” Myers said. “I’m very excited to get him in here, hopefully, and go forward with that. But I think everybody in here’s excited to see a move like that, to see the Padres are very serious about what’s going on here.”
Myers’ sentiment was echoed by veteran pitcher Chris Young, who teamed with Hosmer over the last three seasons, including during the Royals’ World Series run in 2015.
“He’s one of my all-time favorite teammates,” said Young, who is in camp on a non-roster deal. “He brings a competitiveness, a fire, but also sort of a child’s spirit in the clubhouse where he can relate to everyone, joke around, have fun, and he has a way of connecting with everybody on the team. He’s just a special player, a special person, and I’m thrilled he’s going to be here.”
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Shortly after his arrival Sunday morning, Myers visited manager Andy Green’s office to discuss his upcoming shift to a corner-outfield position. Myers was Tampa Bay’s starting right fielder as a rookie in 2014, and Green later said Myers may see more early repetitions in right than in left, another consideration.
“I think he’ll probably see the majority of his fly balls in right field,” Green said, adding that which corner Myers settles in remains to be determined. “… I watched over this offseason every ball he caught in right field in 2014. It’s obvious the place you play the most is the place you’re going to have the most comfort. The best thing about him through this offseason is, (Myers said,) ‘Just tell me where to play and let’s go win baseball games.’”
Hosmer’s addition and Myers’ resulting transition have broader implications for an already-crowded outfield. Hunter Renfroe, who debuted in right field as a rookie last season, and José Pirela, who surprised in left field, appear to be the early favorites for whichever corner spot Myers does not occupy. Green indicated that Renfroe, Pirela and two other candidates — left-handed hitters Franchy Cordero and Alex Dickerson — all could be deployed in platoon situations. Pirela, who has some experience at second base, offers another option for the infield. Logic says a trade or two is possible before opening day.
“It’s what you want,” Green said of the prospect of increased depth. “You have a lot of guys fighting for not necessarily a ton of at-bats. It’s good for our culture, it’s good for our clubhouse, for guys to know ‘I’ve got to perform if I wanna play for the Padres.’ Because if not, there’s somebody else right there knocking on the door waiting to come. The more competitive we can make it to get at-bats on the roster, the better of a club we’re going to be.”
Notes
• Through a combination of weight training and increased food intake, Myers gained about 22 pounds over the offseason, upping his playing weight to 224. “I was able to put on muscle while still getting faster,” said Myers, who also saw a sports psychologist after a frustrating 2017. He added: “The tools have always been there. I think it’s been the mental ability for me to really stay consistent through a season that was one of my problems.”
• Young volunteered consoling words for Royals supporters smarting from Hosmer’s departure. “I really feel for their fans,” Young said. “It’s an exciting day for the fans in San Diego. It’s a tough day for fans in Kansas City — he’s a homegrown player. I certainly relate to a fan losing a superstar player like him.”
(Top photo: Stephen Brashear/Getty Images)
