The baseball world shook Sunday night with news that Juan Soto has agreed to a 15-year deal with the New York Mets for $765 million. The contract reportedly includes a $75 million signing bonus and escalators that could pump the deal all the way up to $800 million.
The New York Yankees, Soto's 2024 ballclub, appear to have been the runners-up here with an offer of 16 years and $760 million, according to the New York Post.
At first glance, it might appear that Soto went to the Mets for the extra $5 million, but there's a little more to it than that.
First up, it's unclear if the Yankees offered a signing bonus of that level, or at all. Getting $75 million up front with no deferrals seems like a coup for a 26 year old, as that money is most valuable right now.
The Yankees' offer of that 16th year, while ostensibly providing more job security, means a touch less money per season for Soto. Why have to play an extra year just to get the full amount of the contract when the Mets will have him fully paid through the 15th year?
And, of course, there are the escalators, also known as incentives. Players are supremely confident beings and there's little doubt in Soto's head that he's going to be amazing for 15 years and will hit every marker he needs to hit in order to earn those incentives, whatever they may be. That's how you get to this point.
This means, in the end, Soto could be looking at $800 million from the Mets over 15 years with a $75 million signing bonus vs. $760 million from the Yankees over 16 years without a bonus.
We can't know everything that was running around in Soto's head, but in terms of the money, the Mets had a better offer. It might not have been a blowout, but there was a bit more separation than simply the $5 million we see at first glance.
