January 14, 2007
Under Pay Overbay
The Toronto Blue Jays signed Lyle Overbay to a very reasonable four-year contract yesterday:
Overbay, who made $2.525-million in 2006, will earn $4.2-million in 2007, with $3.8-million being paid out as a signing bonus. He will earn $5.8-million in 2008 and make $7-million in 2009 and 2010.
Lyle would be eligible for free agency after the 2008 season. Overbay isn't the prototypical power first baseman, but he gets on base at a very good clip and hits lots of doubles. This may be one of the sanest contracts issued this winter.
Again, we see a Canadian player get paid heavily in bonuses to take advantage of Canadian tax law. If I understand correctly, the bonus money is charged at a 15% rate (after various shenanigans) instead of 50% for salary. It's not like working in Florida, but it's not awful. Players lose more than that just from asking Scottie Pippen who he uses to manage his money.
Yep, we got a great deal. It makes me even happier when I realize that Shea Hillenbrand, a vastly inferior player, is making $6.5 million. If you look at the Jays contracts for their important players, almost all of them expire in 2010, including that of the general manager.