As first reported by the excellent DeJan Kovacevic, Pedro Alvarez agreed to terms last night with the Pirates. The deal is not fully completed and executed, but there is no reason to think it won’t happen, and the grievance hearings that were scheduled this week likely will not occur. As opposed to a standard $6 million bonus which was the original deal, this deal has a minimum value of $6.355 million, but could be worth just short of $8 million should Pedro reach the big leagues in 2010. Here are the details. The bonus remains $6 million; however there are significant monetary add-ons, not to mention the advantages of a major league deal, which include the salary guarantee provision.
Bonus: $6 million
Guaranteed Salary: $335,000 ($88,750 per year for four years)
Guaranteed Salary if in the big leagues: A total of $550,000 above major league minimum for the years 2010-2012, escalating to $700,000 in the final year.
Non-Arbitration Guarantee: Following the four years, should Alvarez not be arbitration eligible, his minimum salary, even if still in the minors, will be $500,000.
In Frank Coonelly’s initial statement once these shenanigans began, he and the Pirates took a hardline stance and called agent Scott Boras’ wish for a re-opening of negotiations, “meritless”.