Large Post-Career and Milestone Bonuses Featured in Albert Pujols' Contract No Longer Allowed
Major League Baseball and the MLB Players Union have agreed to end personal-service deals and milestone bonuses, reports Jayson Stark of ESPN. This agreement will not affect existing contracts.
The motivation for the change comes in the wake of some of the language in recent contracts like Albert Pujols' 10-year, $240 million deal and Ryan Zimmerman's 6-year, $100 million extension, where each has a personal-services option not subject to the luxury tax of the Collective Bargaining Agreement.
Both sides agree that these provisions as well as bonuses for milestone achievements (like the extra $7 million Pujols would earn if he breaks Barry Bonds' home run record) violate the CBA and will no longer be allowed.
Stark's source is suggesting that the goal is to close loopholes that would allow teams to circumvent the luxury tax, since neither milestone bonuses nor post-playing career personal-services provisions are considered guaranteed money.