Julio Teheran and Hidden Inflation
Today, Julio Teheran joined the ever growing ranks of young players to sign long term deals early in their careers, agreeing to a six year contract with the Braves that guarantees him $32.4 million, according to Ken Rosenthal. Because he has just one year of service time, this deal buys out two remaining pre-arb years, three arbitration seasons, and then his first free agent year, while also giving the Braves an option for a second free agent year at just $12 million.
The easy comparison is the Madison Bumgarner deal signed in April of 2012. Because that deal was completed after opening day, it’s officially only a five year extension, but in reality, it covers the same time period as this deal for Teheran, and could be more accurately described as a six year deal since the extension didn’t kick in for 12 months from the signing date. Bumgarner got $35 million in guaranteed money for those six years, and he gave up two free agent years as team options for $12 million. Teheran got a little less in guaranteed money, but also surrendered one fewer free agent year. Regardless, the two deals are very similar, and there’s little question that the Braves used Bumgarner’s contract as something of a template for this Teheran deal.