The Jays and Vladimir Guerrero Jr. agreed to a massive extension late last night:
First baseman Vladimir Guerrero Jr. and the Toronto Blue Jays are in agreement on a 14-year, $500 million contract extension, pending a physical, sources told ESPN’s Jeff Passan on Sunday night.
This is a monumental, no-deferral deal to keep the homegrown star in Toronto for the rest of his career, and comes as the 5-5 Blue Jays are in the midst of a road trip that takes them to Fenway Park to meet the Boston Red Sox on Monday.
Guerrero, 26, a four-time All-Star and son of Hall of Famer Vladimir Guerrero, had said he would not negotiate during the season after the sides failed to come to an agreement before he reported to spring training. But the sides continued talking and sealed a deal that is the third largest in Major League Baseball history, behind only Juan Soto‘s 15-year, $765 million contract with the New York Mets and Shohei Ohtani‘s 10-year, $700 million pact with the Los Angeles Dodgers.
ESPN.com
The Blue Jays tried to spend money on free agents the last two years, but lost out to the two big deals above. Note that the Blue Jays made a deal that pays Guerrero free agent money without him becoming a free agent.
Guerrero averaged 3.3 fWAR in his three previous seasons, last year coming in at 5.4 fWAR, still below his seasonal age 22 season of 6.4 fWAR. So in figuring out his WAR over the life of the deal, I take the 3.3 WAR as a constant over his prime (through age 29, four year), then a 10% a year fall off after that. That puts him at 32.5 fWAR for the life of the contract, or about $15.4 million per WAR. That is much higher than the $10 to $12 million per WAR free agents get today. Setting his current value at five fWAR per year for his prime yields a total of 49.3 f WAR for the life of the contract, $10.1 million per WAR. That value per WAR makes a lot more sense in the present market, given that Guerrero is not a free agent.
This raises the question, did the Blue Jays get the valuation correct? Guerrero owns a relatively low strikeout rate for a slugger, which is why he hits for a high batting average. His isolated power is good, and his BABIP increased in recent years, suggesting he’s doing a better job of putting the ball in play. There is a lot of like here.
The Blue Jays may also be privy to why 2023 was such a down year. Often times a season like that comes from a nagging injury. If that was the case, this actually looks like a very good deal for Toronto, and not a Vernon Wells disaster.