Toronto Blue Jays Star Vladimir Vladimir Guerrero Jr.’s slugger, a contract extension of $ 500 million in Vadimatoral, would include a signature bonus.
According to the Ken Rosenthal of athletics, the Blue Jays will pay $ 325 million from the agreement to Guerrero in a signature bonus, while the remaining $ 175 million will be paid in wages. Rosenthal added that the signature bonus and the salary “will be distributed as an annual variable amounts over the duration of 14 years of the agreement”.
Guerrero spoke to journalists from his new agreement on Wednesday. He was asked what advice he had received from his father from the temple of fame, Vladimir Guerrero Sr., and he said with a smile: “Trust God. My Father told me to trust God and get the last penny I could from the organization.”
While a signing bonus of $ 325 million is almost unknown in the world of sports, Rosenthal explained that this decision maintains Guerrero’s impact on the expenses of the team to a relatively low figure.
“The collective baseball agreement does not limit the amount that a team may include in a signature bonus,” said Rosenthal. “The bonus, however, is included in the calculation of the average annual value of a player for luxury tax purposes. Including the salary, the luxury annual Guerrero blow will be $ 35.71 million.”
Rosenthal has also noted that Guerrero will benefit from it in several ways. Signature premiums are generally allocated to the state of residence of an athlete, and Guerrero lies in Florida, a state without income tax. By converting 65% of its $ 500 million agreement into a signature bonus, it will probably avoid millions of state tax avoidance.
In addition, as signature bonuses are guaranteed independently of the performance of the services, Guerrero would still receive his annual income if the games are canceled due to a work stoppage or any other reason. The collective agreement of the League expired on December 1, 2026, so a work stoppage is a possibility if a new agreement is not concluded before.
Rosenthal added that Guerrero will receive a payment of an initial signature bonus of $ 20 million within 30 days. However, this money will not count against the luxury wage bill of Toronto this season, because its new agreement takes place from 2026 to 2039, and a signature bonus only applies to the pay of luxury tax during the guaranteed years of the contract under the current ACB.
