His contract details according to Cotts:
6 years/$30.25M (2010-15)
2.034 yrs service after this year (if he stays on 24-man roster entire year)
-$16.25M signing bonus ($1.5M at signing; $1.5M each Nov. 1, 2010-13; $1.25M each Nov. 1, 2014-20).
-10: $1M, 11:$1M, 12:$2M, 13:$2M, 14:$3M, 15:$5M player option
-Chapman must decide whether to accept or decline 2015 player option within 5 days after end of 2014 World Series.
-If Chapman qualifies for arbitration after 2012, $5M is converted to a bonus and he becomes arbitration-eligible (he will not qualify).
-If Chapman qualifies for arbitration after 2013, $3M is converted to a bonus and he becomes arbitration-eligible (he will qualify).
So through 2012, of the $30.25M he signed for, he will have been paid out $4M in salary (10: $1M, 11:$1M, 12:$2M), and $6M in signing bonuses ($1.5M at signing and $1.5M each Nov. 1, 2010, 2011, 2012) – totaling $10M.
The Reds still owe him $15.25M in guaranteed money ($10.25M in bonuses from 2013-2020) and $5M for salaries in 2013 and 2014 ($2M, $3M). The Reds only really have him locked up for two more years as he has a player option in 2015 ($5M). If he plays through 2015, the Reds still owe him $20.25M plus the $3M bonus for becoming arb-eligble after 2013.
So the question is, should the Reds look to extend him after 2012?
Let’s assume at the end of 2012, he maintains his dominance as a closer and all we know is he has potential to be a starter or continue being a dominant closer. With all that said, since we really only control him through 2014 (two more years) would it make sense to extend him, say through 2017, giving us a guarantee of keeping him at least three more years? And what would it take?