Nationals Wisely Extend Ryan Zimmerman
When the Washington Nationals and Ryan Zimmerman began negotiating his $100 million extension, Zimmerman was already bound to the team for 2012 and 2013 seasons. Even still, the Nats decided to give him a $100 million guarantee this weekend in exchange for his services from 2014 until 2019. Zimmerman’s performance through his 34th birthday is now the property of the Nationals. Washington had two years to decide whether to make such an investment in Zimmerman’s health and extended performance — but they decided to take the risk now.
The deal’s critics already pointed out Ryan Howard’s questionable extension in April 2010 — also two years before he became free-agent eligible — but there are a number of recent contracts that may be better comparisons for Zimmerman’s. While Howard’s deal appears that it will be a major overpay, it turns out these contracts generall work out quite well for teams. Instead of being unnecessary risks, they are usually hedges against spending even more money in the future.
Utilizing all contracts of players with at least six years service time from 2007 to 2011, I searched for deals that were signed at least two years before the player was eligible for free agency and that bought out at least three free agency years. I included deals that bought out arbitration years as well — though these obviously are different than Zimmerman’s new contract — and found 11 contracts that met these criteria. To quantify these contracts’ values, I looked only at performance and pay from 2007 to 2011. This excluded six years of these deals that started before 2007, and 14 years of these contracts that ended after 2011.