Chris Archer, Jose Quintana, and Risk Valuation
The rise of the early career contract extension has, in some cases, made it clear just how much impact one contract extension can have on future contract negotiations. For instance, nine months after Justin Upton signed a six year, $51 million contract with the Diamondbacks, Jay Bruce signed a six year, $51 million deal with the Reds. A year after that, Andrew McCutchen signed a six year, $51 million deal with the Pirates. A couple of years ago, Madison Bumgarner, Jon Niese, Derek Holland, and Chris Sale all signed long term deals with very similar parameters at similar levels of service time. Even just a few weeks ago, Starling Marte signed a $31 million contract that is almost exactly a clone of the deal Paul Goldschmidt signed last spring.
This is basically how the extension market works. There are parameters in place that drive the fundamentals, but by and large, a lot of the negotiation boils down to making sure that the deal is in the same range of what the last few similar players signed for. And so it’s not surprising that the two most recent extensions for young, early career pitchers come with almost exactly the same terms.