Reds, Encarnacion Work Out Deal

[osuceltic]

Originally Posted by I(heart)Freel

Hmmm...


10:24am: Troy Renck of the Denver Post has details:

Encarnacion will receive $2MM this season and $4.75MM in 2010 with an $850K signing bonus payable between March 29 and November 2009. Also will get $25K for 600 plate appearances.

My prediction: The Reds will not be paying that $4.75 million salary in 2010.

[Roy Tucker]

Looks like the Reds don't think the economy will turn around until 2010.

[Caveat Emperor]

I'm not high on Encarnacion's long-term future with the club, but they don't have any better options than him right now. Hopefully the economy doesn't continue to tank and leave the Reds holding the bag for a deal far in excess of what he would receive in arbitration or what they could get from a FA by non-tendering him.

[princeton]

Originally Posted by Roy Tucker

Looks like the Reds don't think the economy will turn around until 2010.

I was thinking the opposite

Reds seem to have paid EdE as if they will no longer be able to get cheap FAs next winter.

[WebScorpion]

Originally Posted by OnBaseMachine

Things I'm told
The Reds avoided arbitration and reached agreement on a two year deal with Edwin Encarnacion this morning.
Edwin made $450,000 in 2008. He had requested 3.7 mill in arbitration. The Reds had offered 2.55 mill.
Total deal: $7,600,506
2009: $2,000,000
2010: $4,750,000
Signing bonus - $850,000, payable between March 2009 and November 2009.
Plus: $25,000 for 600 plate appearances
Plus: $25,000 for All Star; $50,000 for LCS/MVP;
$100,000 for WS/MVP; $50,000 for Gold Glove; $50,000 for Silver Slugger.
Edwin will donate 1% of base salaries and signing bonus to Reds Community Fund.

http://www.1530homer.com/pages/lancesBlog.html

They should have taken the $850,000 signing bonus and tied it into the Gold Glove bonus...that'd be a sure thing. If he qualifies for a GG, he'll be worth a lot more than $2.9Mil.

[membengal]

Reasonable deal, with the potential to be a real bargain for the Reds if EE continues to develop his power. And, if he has plateaued, a contract that will still be easy to move.

Well done, Walt.

And, I disagree with whomever thought this contract shows a lack of Reds interest in the coming 3b pipeline. I disagree. This will only be Frazier's first year at AAA, and they still have not settled on a position for him. Francisco is only in his first year at AA. If Francisco is who they have their eye on, this gives him time to continue to develop.

[Always Red]

Originally Posted by princeton

Reds seem to have paid EdE as if they will no longer be able to get cheap FAs next winter.

I agree. If these numbers are right, EE asked for 3.7 mill, and the Reds said: hey we have a deal for you, listen to this- we'll pay you that amount, and throw in a little bit more, not just for this year, but for next year, too. Is that OK, Edwin?

[Screwball]

Originally Posted by membengal

Reasonable deal, with the potential to be a real bargain for the Reds if EE continues to develop his power. And, if he has plateaued, a contract that will still be easy to move.

Well done, Walt.

And, I disagree with whomever thought this contract shows a lack of Reds interest in the coming 3b pipeline. I disagree. This will only be Frazier's first year at AAA, and they still have not settled on a position for him. Francisco is only in his first year at AA. If Francisco is who they have their eye on, this gives him time to continue to develop.

AA too.

[IslandRed]

Originally Posted by Always Red

I agree. If these numbers are right, EE asked for 3.7 mill, and the Reds said: hey we have a deal for you, listen to this- we'll pay you that amount, and throw in a little bit more, not just for this year, but for next year, too. Is that OK, Edwin?

Not sure I follow... Edwin's getting $2.85 million this year, so this year's dollars are closer to what the Reds offered than what he was asking for.

As for '10, it's kind of an all-or-nothing deal to me. If he's playing poorly enough that we regret having that $4.75 million on the books, he'll probably lose his job altogether.

The part that concerns me is, instead of just signing him for $2.85 million this year, there's a "signing bonus" that the Reds can defer all the way to November. Makes me wonder if they're concerned about cash flow.

[Always Red]

Originally Posted by IslandRed

Not sure I follow... Edwin's getting $2.85 million this year, so this year's dollars are closer to what the Reds offered than what he was asking for.

As for '10, it's kind of an all-or-nothing deal to me. If he's playing poorly enough that we regret having that $4.75 million on the books, he'll probably lose his job altogether.

The part that concerns me is, instead of just signing him for $2.85 million this year, there's a "signing bonus" that the Reds can defer all the way to November. Makes me wonder if they're concerned about cash flow.

Well, I just doubled the 3.7 for 2 years, and saw the Reds were paying above that for the total deal. I was speaking more to the Reds view of the economy than anything else. In a "normal" economy, this deal is pretty fair, I think. In this current economy, I think it looks more fair to Edwin than the Reds. I feel like the Reds would have won arb with EE, but not sure his ego could handle a bruising arbitration session. What i get out of this is that I think the businessmen who run the Reds feel this economy is going to be a short term thing. Either that, or they are very high on Edwin being a long term answer at 3B.

[membengal]

If Edwin hits 33 homeruns this year with an OPS around .860 or so, this deal will be great from the Reds' perspective.

Even if he "only" hits around 26 homeruns again this year with an OPS around .820 it will still be a fair deal at $4.75 million for 2010.

[princeton]

Originally Posted by membengal

And, I disagree with whomever thought this contract shows a lack of Reds interest in the coming 3b pipeline. I disagree. This will only be Frazier's first year at AAA, and they still have not settled on a position for him.

Reds are sandbagging Frazier, who should have spent a half-year in Chattanooga last summer. they might not like him, but I suspect that he's heard that all his life. he'll show 'em different, I think.

in fact, in spite of the sandbagging, I suspect that he'll be ready this year. In which case, it's unfortunate that the guy that you just might want to nontender has a guarantee for 2010. it cuts off that option. Kudos to EdE's agent.

at least the Reds can't figure out positions for either of 'em. Gold Glove incentive... I love it.

[REDREAD]

Originally Posted by Crosley68

If the Reds offered 2.55 this year, there is no way EE accepted $5 for 2 years....that doesnt make any "cents"

Edit, never mind.. it looks like 2 years and about 7.5 million..

[REDREAD]

Originally Posted by osuceltic

My prediction: The Reds will not be paying that $4.75 million salary in 2010.

Unless EdE steps it up, I don't think anyone else will be willing to pay that salary. I predict the Reds will end up paying it. (If he plays well enough to earn it, they won't want to trade him).

[corkedbat]

nm