Chad Green Signs Convoluted Deal With Toronto

The Blue Jays have been busy this offseason, acquiring Daulton Varsho, Chris Bassitt, and Erik Swanson. Now, they’ve added right-handed reliever Chad Green to the mix, one of the bigger names still on the market. While a full-strength Green is probably the best reliever in this free-agent class who didn’t sign a nine-figure extension to jumpstart the offseason, he was shut down after just 15 innings in 2022 and underwent Tommy John surgery in a contract year. Because his rehab will sideline him for the majority of the upcoming season, he was relegated to 41st on our Top 50 free agent list, with a median crowdsourced projection of just one year and $5 million. Our readers came pretty close on the AAV, but the number of years on his deal is still to be determined.
Let’s go over the complex details of this contract. Green will earn $2.25 million in 2023. At the conclusion of the season, the Blue Jays can pick up a three-year option that will keep him in Toronto through the end of 2026, paying out $9 million per season. Should they decline this team option, he has the option to tack on one more year to the deal worth $6.25 million, but if he’s not interested, the Jays get the chance to exercise yet another team option, this one for just two years and $21 million with some escalators based on playing time. In short, if the Blue Jays are satisfied with Green’s arm health, he could be wearing blue for four years, but if they’re not, he could test free agency again as soon as this November. He can guarantee himself $8.5 million over the next two seasons, provided he accepts the player option for 2024. The nested levels of team and player options are reminiscent of Julio Rodríguez’s mega-extension signed last August (although with fewer years and fewer zeroes on the total value), which Dan Szymborski dubbed “the most expensive Choose Your Own Adventure book ever.” Green’s deal doesn’t warrant that distinction, but it’s still one of the more complicated baseball contracts in recent memory.
Green debuted in the majors in 2016 as a starter with the Yankees, demonstrating his excellent strikeout stuff but surrendering 2.4 home runs per nine. ERA estimators like SIERA and xFIP correctly forecasted that the flyball luck would start going his way, but these improvements came alongside a change in role. The next season, he was moved to the bullpen, where he lowered his home run rate to acceptable levels and improved upon his elite strikeout rate, becoming possibly the best multi-inning reliever in the years since. That’s a tough claim to make, but I think I can defend it. To be a multi-inning weapon, you (obviously) have to pitch multiple innings per appearance, and in the past six seasons, no reliever has done that more than Green. Read the rest of this entry »