Santander's deferred contract details will help sign Alonso and extend Vlad Jr
Anthony Santander's complicated Blue Jays contract could make it easier for Toronto to keep adding talent. Sportsnet's Shi Davidi revealed the details of the deferrals today which explains why.
'Tony Taters' or 'Tony Two Bags' which ever name you may prefer to call him may have been Plan C or D, but the Blue Jays finally landed a big-ticket free agent earlier this week when they signed the switch-hitting slugger him to a five-year contract worth $92.5 million.
Santander, our 15th-ranked free agent, hit 44 home runs with the AL East rival Baltimore Orioles in 2024, the fourth most in a single season for a switch-hitter.
As is often the case these days, Santander's contract structure is complicated.
The deal include heavy deferrals that push down the present day value, and thus the annual competitive balance tax (CBT) charge, significantly.
Here is the contract structure via Sportsnet's Shi Davidi
2025: $13.5 million signing bonus ($6.75 million deferred) and $13.5 million salary ($10 million deferred)
2026: $16.5 million salary ($10 million deferred)
2027: $16.5 million salary ($10 million deferred)
2028: $14.75 million salary ($10 million deferred)
2029: $12.75 million salary ($10 million deferred)
2030: $15 million club option or $5 million buyout (buyout is deferred)
Furthermore, Santander can opt out of the contract after 2027, and the Blue Jays can void the opt out by raising his base salaries to $17.25 million in 2028 and $15.25 million in 2029. The 2030 club option salary would also increase to $17.5 million.
All told, that is $61.75 million in deferred money, which lowers the present day value to $68.6 million, according to the MLBPA's calculations (via The Athletic). For CBT purposes, it's $68.6 million across five years, or $13.7 million per year.
Five years at the original $92.5 million would be $23.125 million per year. The deferrals save Toronto more than $9 million per year against the CBT.
Cot's Baseball Contracts estimates the club's 2025 CBT payroll at $254.1 million. That is up from $233.9 million last year, when the Blue Jays traded away multiple veterans at the deadline, but still a bit south of their $257.8 million CBT payroll in 2023. Toronto is eager to spend and spend big.
A deal is not close and there is no guarantee it will get done, but it shows the Blue Jays aren't ready to call it an offseason after signing Santander.
Toronto wants another big bat (and reportedly a starting pitcher), and Santander's deferrals will make it easier to afford one.
While not a perfect roster fit, the Blue Jays could have Alonso and Vladimir Guerrero Jr share first base and DH duty, and put Santander in the outfield full-time.
They could also put Vladimir Guerrero Jr at third base on some days. Vlad Jr. will of course be a free agent after this season. In addition to Alonso, Santander's deferrals could help make it easier to retain Vladimir Guerrero Jr long-term.
The New York Mets reportedly offered Alonso a three-year deal in the $68 million to $70 million range. After that was rejected, they pivoted to lefty A.J. Minter and outfielder Jesse Winker, though it's unlikely the Mets have closed the door on Alonso completely.
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