The Toronto Blue Jays are flying high so far this season, and, as a part of that, the much- maligned front office deserves credit after signing Vladimir Guerrero Jr. to a 14-year, $500 million extension. That contract is at the center of these good vibes.
The news of Guerrero's extension is the cherry on top for a front office that also brought in key contributors like Andrés Giménez and Jeff Hoffman in the offseason.
And while Guerrero's extension is good news in and of itself, it also contains an intriguing element that is getting plenty of attention and may provide a model for other teams and players to follow in the future.
With the Blue Jays at the center of the latest mammoth deal in baseball, the Guerrero Jr. pact contains a $325 signing bonus, according to The Athletic's Ken Rosenthal (subscription required), who explained how it is paid out and the benefits to each side.
First, it protects his money in case of a work stoppage. The work stoppage unfortunately feels like an inevitability that is coming down the tracks in about 19 months when the new CBA expires.
Additionally, the contract protects the slugger from punitive taxes because the bonuses are allocated based on a player's state of residence. Guerrero resides in the state of Florida, which has no income tax.
The Blue Jays will be paying the signing bonus in differing annual amounts over the course of the 14 years of the contract, which doesn't officially start until 2026. The Blue Jays are still paying Guerrero Jr. $28.5 million this season in a salary the two parties agreed upon to avoid arbitration. The $175 million in salary and the signing bonus will equate to an annual competitive balance tax (CBT) threshold hit of $357.1 million over the duration of the contract.
Blue Jays president Mark Shapiro was always seemingly always optimistic through this process whenever when things were looking their bleakest, and they deserve praise for taking advantage of their team control of Guerrero. He wanted to stay in Toronto and just needed a couple things to be checked off to make that happen, and the Blue Jays front office made that happen.
"I think it's monumental for Toronto." 🫡
— Sportsnet (@Sportsnet) April 9, 2025
Ross Atkins on the Blue Jays signing Vladimir Guerrero Jr. to a 14-year extension. pic.twitter.com/wYxfolcSrz
The Blue Jays are building the foundation to put forth a winner for the future and flexed their financial muscle in the process.
Instead of seeing their biggest star depart for another team, they did everything in their power to make sure he can be a Blue Jay for life. The best part is that it appears that the structuring of the signing bonus is perfectly legal, which may spawn other front offices to engage in similar behavior.
The ownership group also deserves plenty of praise for adding some financial heft to the books this winter. The Blue Jays will still have to deal with a large group of players potentially departing in free agency, but a strong core is beginning to emerge.
Now it's time to wonder what the signing bonus/deferral situation will look like in the team's contracts going forward.
It's not like the club will stop spending money because they blew all their resources on one guy. In fact, this shows that the club will be doing everything in their power to be competitive during Guerrero's prime years.
Only time will tell, but fans likely are feeling pretty good about a team that is showing they belong in the World Series conversation.