One of the nice aspects of this signing is that it helps extend the window of contention through 2015 (at least) because we have Bailey, Cueto, Latos, Leake and Cingrani all locked up through the next 2 years (with Stephenson on the fast track). With that type of starting pitching, you don't even have to hit all that much to be in the mix.
It also gives us a lot more flexibility and potentially gives us a really nice trade chip at the deadline this year. If Holmberg or Stephenson is ready for a mid-season promotion, the Reds would be able to trade Cueto or Leake possibly for a big bat. With 1.5 years left on those guys' contracts, they would have more value than .5 season of Homer (had we not got the extension done).
Great move by the Reds here.