Dateline - 02/10/05 (a.m.): In an attempt to show loyalty, commitment and overall good guyness, the Houston Astros are locking in on a two year deal worth reportedly 17 million for the remaining arbitration eligible player on the team:
Roy Oswalt. The negotiation is going so well, it is expected that it will be finalized perhaps as quickly as today. A two year deal buys off this season and next in arbitration for Oswalt, who will not be eligible for free agency until after the 2007 season. What is left to be done is to figure out the structure of the deal, reportedly one that would pay him less in 2006, somewhere around the 6 million the Astros want to budget. This would give the team that payroll flexibility they covet to make themselves available for deals that may crop up during spring training.
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Dateline - 02/10/05 (p.m.):Just announced on The Flagship (KTRH Radio), Oswalt agreed to a 2 year deal with the Astros tonight. Details forthcoming.
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Dateline - 02/11/05 (a.m.): The details are in for the contract and they are as follows:
- Total contract worth: 16.9 million dollars
- Total contract length: 2 years (2005 & 2006)
- 2005 payout: 5.9 million
- 2006 payout: 11 million
- Incentives: Cy Young bonus: 1st place finish: 500K, 2nd place finish: 350K, 3rd place finish: 250K
The Astros obtained the payroll flexibility they wanted for this season and clearance of several contracts next year plus added revenue from the television contract will help offset the huge payout in 2006. In the offseason of 2006, Houston will be facing a similar situation with Oswalt as they are currently with Lance Berkman. Oswalt will be in his last year of arbitration before being eligible for free agency after the 2007 season. This two year deal works towards building goodwill between player and organization, creating insurance financially for the player in case of career ending injury, but still short enough to allow the player to go back into negotiation for a higher payday if the performance is one of higher echelon players (and keeps the team from facing a threat of whiny contract renegotiation from players and agent) and also short enough timespan to have an insurance policy underwritten for the team to keep liability to a minimum.
Win-win all around.
