Reds sign OF Nicholas Castellanos to four-year deal

[Ron Madden]

Can he opt out one of his two options and then accept the QO and get an automatic couple of million dollar raise?

Yes.

If he accepts the QO he would then be under contract to the Reds for just one year, it would replace the 4 year deal he just signed.

[GAC]

I think we've beat the hell out of the opt-out discussion! LOL

[WrongVerb]

I think we've beat the hell out of the opt-out discussion! LOL

Are you opting out of it?

[cumberlandreds]

I've been away and hadn't a chance to comment about this signing. This is another very good signing. He should provide much needed offense. Even though his defense may not be gold glove caliber he should be good enough. Also with some injuries that have already happened this should off set that a little. Also I wonder if Senzel will be ready at the beginning of the season? This kinda tells me they don't think he will be. But when all are healthy this should set up a nice trade for maybe another good pitcher or maybe a better SS with excess of outfielders they have now. This signing also shows the Reds management is trying to build a winner. Up until last winter you really wondered if they had any commitment at all to winning. They are beginning to open up the pocket books and making what seems like a good effort to win. It makes you feel good about the upcoming season and for the future as well.

[Sea Ray]

My 89 yr old mother in law is visiting now. She's from the suburbs of Detroit and lifelong Tiger fan. I said that my Reds signed an ex-Tiger, Nick Castellanos and she immediately fired back "oh he's good."

So there you have it!

[WrongVerb]

Ken Rosenthal
@Ken_Rosenthal

Unusual deferrals for Castellanos with #Reds:

2020-$16M w $6M def ($2M each on 1/15/21; 2/1/21; 1/15/22.)

2021-$14M w $4M def ($2M each on 1/15/22; 1/15/23).

2022-$16M w $4M def ($2M each on 1/15/23; 1/15/24).

2023-$16M w $4M def ($2M each on 1/15/24; 1/15/25.
9:27am · 29 Jan 2020

This might change the calculus on whether the Reds can afford to trade for a SS like Seager or Story.

[marcshoe]

This might change the calculus on whether the Reds can afford to trade for a SS like Seager or Story.

And calculus will be needed to understand all this.

[Thomaswaynem]

Simply put, it saves the Reds 6 million dollars right now that they can use to upgrade the roster.

When the time for his next payroll check comes up in January 2021, the other paychecks to guys like Disco, Bauer, and Galvis will be off the books.

By my calculations, that can afford them a Brock Holt or Corey Seager.

[Ladeda]

This might change the calculus on whether the Reds can afford to trade for a SS like Seager or Story.

They can afford either Seager or Story, mainly due to the assumption that getting either of them puts the Reds in a good spot to win the division. The Reds will feel they recoup some of the salary through increased ticket sales if they make a division title challenge, or best case-- win the division.

Now if the season goes the wrong way-- it won't happen and they won't see that increased ticket revenue--- but the Reds are this close (on paper,) that for another $7.6mm (Seager's contract,) then they can make room for it. Especially considering how Seager would be a massive upgrade @ the SS position. It would just make financial and baseball sense if they could get him.

[WrongVerb]

And calculus will be needed to understand all this.

That's just calculating the area under a curve, or rate of change of a curve. Not complicated at all.

[The Operator]

In addition to the 6M deferral from Castellanos, you could also potentially save 5M by sending Galvis the other way in a trade for a SS. So you’re to 11M worth of wiggle room at that point.


Go get Lindor. Go big or go home.

[Sea Ray]

Simply put, it saves the Reds 6 million dollars right now that they can use to upgrade the roster.

When the time for his next payroll check comes up in January 2021, the other paychecks to guys like Disco, Bauer, and Galvis will be off the books.

By my calculations, that can afford them a Brock Holt or Corey Seager.

We can only say that if we know the Reds budget. For all we know they deferred the money cause they're already at budget

[RedlegJake]

This makes it easier to figure:
2020 $10 million
2021 $10 mill + 4 million deferred $14 million overall
2022 $12 million + 4 million deferred $16 million overall
2023 $12 million + 4 million deferred $16 million overall
2024 $4 million
2025 $2 million
Total 4 years contracted, 2 years after contract = 62 million
If he opts out after year 1 he'll still be due $4 million in 2021 and $2 million in 2022

[Kc61]

This makes it easier to figure:
2020 $10 million
2021 $10 mill + 4 million deferred $14 million overall
2022 $12 million + 4 million deferred $16 million overall
2023 $12 million + 4 million deferred $16 million overall
2024 $4 million
2025 $2 million
Total 4 years contracted, 2 years after contract = 62 million
If he opts out after year 1 he'll still be due $4 million in 2021 and $2 million in 2022

Fascinating.

These deferrals are pretty short. The deferred money begins to be paid in 2021. Perhaps this was in exchange for the player options. You want an option after year 1, you only gets $10 million immediately paid in year 1.

In actual dollars - Reds pay $10 million in 2020; $14 million in 2021; $16 million in 2022 and 23; then $4 million and $2 million in the outer years after the contract term is ended.

Could open up more salary room for 2020, as a practical matter, Reds now only $10 million over last year’s OD payroll.

[thejanitor]

This makes it easier to figure:
2020 $10 million
2021 $10 mill + 4 million deferred $14 million overall
2022 $12 million + 4 million deferred $16 million overall
2023 $12 million + 4 million deferred $16 million overall
2024 $4 million
2025 $2 million
Total 4 years contracted, 2 years after contract = 62 million
If he opts out after year 1 he'll still be due $4 million in 2021 and $2 million in 2022

Definitely not bad for Nick, a guy projected to put up 1.1 WAR in 2020.