Blue Jays Ricky Romero inks new deal

Today the Blue Jays and pitcher Ricky Romero agreed to a 5/$30.1mil deal that will run from 2011-2015. The deal will take the Jays young ace through his age 26-30 seasons, four years of arbitration and one year of free agency.

Solid move for the Jays from Canada.

The year by year salary breakdown has not been revealed,  but Romero’s AAV will be just about $6mil. Romero would have made under $1mil in 2011 during his last season before he would have been arbitration eligible. Then just gauging his worth and using the 40/60/80 scale, Romero would probably have been payed around $18mil, which is how much his new deal will pay him during those seasons. The big savings don’t come into play until 2015. That season Romero would have been a FA and seemingly would have been looking at a big eight figure payday. Instead, he could be making $6mil. So the Jays may be overpaying for him next year based on what he would have made, but for the rest of the deal they will make good.

As for Romero’s talent value, the Jays are for sure getting a good deal. If the market rate stays around $4.4mil for the next few seasons, Romero would need to accumulate just 6-7 WAR in order to earn what he will be paid. Considering Romero has already posted a 3.4 WAR this season and in two seasons has a 6.2 WAR, I think it’s safe to say Romero will outplay his contract. That is why I love the deal for the Jays.

When more information is made available on the yearly breakdown I can go back and re-analyze that part. But the end story remains the same- great job by Toronto locking up a young, talented pitcher for  less than he’s worth.

UPDATE: Romero will make 750K in 2011, $5mil in 2012, and $7.5mil from 2013-2015. So yeah, great deal for Toronto. He will be paid what he would have made anyway in 2011 and 2012, and then will be underpaid the rest of the deal. Toronto will be saving lots of money. There is also a $13mil option for 2016, and even that could be a bargain come 2016. Just a good deal.

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