The Texas Rangers made the first big splash of the MLB offseason when the landed starting pitcher Jacob deGrom to the tune of 5 years, $185M. deGrom was rumored to be in touch with a number of teams this fall, and it was recently reported that he turned down a 3 year, near $120M offer to return to the Mets, the team that drafted him #272 overall back in 2010.
deGrom’s recent timeline is riddled with injury history, including issues to his shoulder & back the past season and a half in NY. These concerns certainly factored into the Mets (and probably a few other) offers coming in with a shorter term, despite his desire for a 5 year deal.
The Rangers complied, swooping in with a $37M per year guarantee, a full no-trade clause, and the added bonus of being in a state that includes no income tax.
THE CONTRACT BREAKDOWN
deGrom’s new deal is about as straightforward as they come. He’ll cash $30M this coming season, $40M each of 2024 & 2025, then $38M & $37M respectively through the 2027 campaign. There’s a $37M option for the 2028 season that has been referenced as “conditional”. It’s safe to assume this begins as a club option, but can convert to a player option if deGrom hits certain thresholds (innings, games started, less than days on the injured list, etc…) The details of this option are not yet confirmed, but it contains no guaranteed money up front.
deGrom’s $30M payout this year is $10M more than he’s ever made in a single season ($20M in 2021). In total, this new contract raises his guaranteed earnings on the field to over $310M.
HOW IT RANKS
At $37M per year, deGrom becomes the 2nd highest average paid player in MLB history (for a minute), behind old teammate Max Scherzer ($43.3M).
His $185M total value ranks 18th in the league currently, 3rd amongst starting pitchers (Cole, Strasburg).
THE RANGERS IMPACT
The Rangers continue a spending spree that saw them pile up $600M in new contracts last offseason. Texas now has $685M locked in to Corey Seager, Jacob deGrom, & Marcus Semien, and when you factor in Martin Perez’s $19.6M signed qualifying offer, these four players now represent 49% of their allotted tax threshold in 2023.
It’s clear that the Rangers are thinking big here, and they may not be done. Texas currently projects to a $188M tax payroll for 2023 when factoring in estimated arbitration salaries & pre-arbitration players to fill out a 40-man roster. This leaves them with $45M of tax space to work with - plenty of room to add a few notable names.
THE METS IMPACT
It’s clear the Mets were willing to overpay to keep their longtime ace - but not for long. When on the mound, deGrom was a $45M player in our system - but when is the operative word here, and the Mets knew that more than anyone.
The Mets stand to lose 3 of their 5 starters from 2022 (deGrom, Chris Bassitt, Taijuan Walker), with 3 bullpen arms also still in question. The loss of a deGrom puts the pressure on NY to find themselves a legitimate #2 pitcher to complement Max Scherzer, with Carlos Rodon & Justin Verlander the early favorites in the clubhouse. The problem? NY currently projects to a $245M tax payroll - $12M over the 2023 threshold. It’s going to get expensive fast in Queens.