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Alvarez Agrees To New Deal

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In a stunning reversal of a summer-long drama, the Pirates and top draft pick Pedro Alvarez last night agreed to terms on a revised four-year, major league contract worth a guaranteed $6,355,000, according to three sources intimately familiar with the talks.

The contract is expected to be signed once Alvarez passes a physical, which could happen early this week.

It was not immediately clear which side instigated the new talks, when they began or whether they occurred with the blessing of Major League Baseball and its players' union. But one source indicated that a signed contract between the Pirates and Alvarez likely will quash a related grievance filed by the union against commissioner Bud Selig's office, offering a sign that all concerned have been duly informed of this development.

Link here.

Wow... I'll admit, I didn't see this coming. It is a major league deal, which I think means he has to be on the 40-man roster (correct me if I'm wrong please).

Does this mean that Boras wins?

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The Pirates stated at that time and beyond that they would not be willing to reopen talks with Alvarez if it meant paying more. Boras strongly indicated that he would be willing to discuss a revised settlement.

I wonder what happened there. (emphasis above mine)

The Utah Jazz. The Jazz... duh.
The best NBA team in Utah... no doubts about it!
Playing For Pride. Pirates, Utes, Panthers, and more...
Because, in the end, only one team can "win it all".

by UtesFan89 on Sep 22, 2008 12:59 AM EDT reply reply actions actions   0 recs

A lot depends on how you break the money down, since it’s now spread over 4 years. I certainly don’t look at it as the Pirates losing.

by WTM on Sep 22, 2008 1:03 AM EDT to parent up reply reply actions actions   0 recs

Was it spread over 3 before?

The Utah Jazz. The Jazz... duh.
The best NBA team in Utah... no doubts about it!
Playing For Pride. Pirates, Utes, Panthers, and more...
Because, in the end, only one team can "win it all".

by UtesFan89 on Sep 22, 2008 1:08 AM EDT to parent up reply reply actions actions   0 recs

...

Oh, the bonus was spread over 2. Okay… I think I get it now.

The Utah Jazz. The Jazz... duh.
The best NBA team in Utah... no doubts about it!
Playing For Pride. Pirates, Utes, Panthers, and more...
Because, in the end, only one team can "win it all".

by UtesFan89 on Sep 22, 2008 1:11 AM EDT to parent up reply reply actions actions   0 recs

DK's winner/loser
Depending on one’s perspective, this can be seen as a victory for either side: The Pirates might maintain that, because Alvarez’s bonus is spread over twice as many years as the original, the actual guaranteed value of the deal, when weighing interest and inflation, actually is $5.67 million in total. The Alvarez side might maintain that the major league contract will bring Alvarez more money sooner, perhaps $900,000 more than in the original.

Either way, based on Alvarez’s most likely route to the majors, the numbers probably will not wind up far apart.

by ElliottBayBucco on Sep 22, 2008 1:21 AM EDT reply reply actions actions   0 recs

Who cares about the money or the line in the sand?

Honestly, I don’t particularly care if the Pirates caved or anything like that. We just signed a really good player here. Look at it this way, if we had signed Pedro on Aug. 15 to a major league deal worth $6.35 or whatever – I would have been very happy. This whole thing looked like it would end up in federal court, but now, hopefully, Alvarez will be a Pirate very soon. We could have ended up signing neither of our first two picks in the draft this year – not a very good way to get started for NH/FC. I am just happy that Alvarez will actually be in our organization now.

by houksyndrome on Sep 22, 2008 11:57 AM EDT reply reply actions actions   0 recs

It's a problem...

…because everybody else is going to try and back us down now that Alvarez and Boras have done so. We’ll end up paying more for talent, and as a result be able to acquire less of it for the same money.

by Vlad on Sep 22, 2008 1:07 PM EDT to parent up reply reply actions actions   0 recs

I hear you but . . .

it’s not like the renegotiated deal was for $8 million or something. We are talking 6 to 6.35 which is roughly a 5% increase. He was (according to us) the most talented player in the draft. The most talented player should get the most money. It’s not like we just dropped $8 million on Bryan Bullington v2 or a worthless veteran like Matt Morris. This is the second best way the situation could have ended – the best being Pedro signing for $6 million. However, for that latter scenario to occur, it would have likely involved a huge legal battle and wasted time and money – no thanks.

I highly doubt that this exact situation will repeat itself. Perhaps, we will offer slightly signing bonuses right before the deadline – such that when we draft the top talent in the draft (as we will probably do in 2010) that we actually give that player the top bonus. I don’t mean to sound like I condone Boras. I think Boras is a greedy prick who ruins the game. But, at the same time, I think our management team just learned that perhaps they shouldn’t always seek to drive TOO hard a bargain, because if they do so and embarass an agent, particularly one with an ego like Boras, bad things will happen. Hopefully this lesson will not end up costing us anything. While I’m not saying that we should be soft in our negotiations, perhaps now we will ease up just a bit and sign players for contracts that both parties agree are fair.

by houksyndrome on Sep 23, 2008 3:33 AM EDT to parent up reply reply actions actions   0 recs

It does set a precedent

No matter how you slice it. While finding a way to resolve this is preferable to a potential loss of Alvarez and the compensation pick (although both of those things happening still is a stretch for me), there is nothing good about a new deal after Huntington and Boras agreed. Unless these sorts of renegotiations are addressed so the parameters are clear, this almost guarantees that Boras and others will be emboldened to creat new and more complex scenarios leading to future problems for the Pirates and other teams.

by RichieHebner on Sep 23, 2008 6:32 PM EDT reply reply actions actions   0 recs

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