Boston Red Sox’s $38.5 Million Gamble: A Closer Look at Opt-Outs and Club Options in Their Latest Mega Deal

The Boston Red Sox just locked down a pitcher for their rotation for the coming two seasons. For a free agency market that isn’t buzzing quite as much as before, the news certainly comes as a shock, considering it went down for $38.5 million. As a mark of the Red Sox’s first mega-deal signing in the 2023 Hot Stove, the details of it demand a closer look.

The Red Sox’s CBO, Craig Breslow, has had his eyes on pitcher Lucas Giolito for around three weeks now. After beating contending teams like the New York Mets, the Arizona Diamondbacks, and the Kansas City Royals, BoSox locked the ace down for the coming two years. According to sources, there are certain factors other than an opt-out clause in the contract. That includes several buyout options and some pretty particular club options.

The Boston Red Sox and Giolito have agreed on a deal that makes space for security amidst uncertainty

Boston made a wise move by signing Lucas Giolito, a pitcher known for delivering consistent innings and strikeouts. However, it’s worth noting that his contract exceeds $20 million per season, despite having consecutive years with ERAs of 4.90 and 4.88. Additionally, he allowed 41 home runs in the most recent season. The inclusion of an opt-out clause provides Giolito the opportunity to leverage a successful season into free agency at the age of 30.

Renowned MLB insider and ESPN columnist Jeff Passan revealed the details of the deal on his Twitter (now X) page just this evening. According to Passan, the Boston Red Sox have provided Giolito with an opt-out clause after his first year in the clubhouse. The ace is expected to receive $18 million in salaries in 2024.

Giolito’s buyout value stands at $1 million, in case he opts out for the following season. If the Big Foot chooses to stay with the club through 2025, he will be receiving a salary of $19 million.

Although no contract extensions have been confirmed yet, there is a faint chance of him staying through three seasons instead of two, as well. One that comes with several conditions and two different optional approaches toward ‘26.

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What can the ace expect post-2025?

Passan has reported that BoSox has provided Giolito with two different scenarios for his third season on the team. The nuances of that indicate that the pitcher, if able to throw over 140 or more innings in 2025, will receive a mutual option for the next year that will be worth $19 million. Giolito will be receiving $1.5 million in buyouts in that outcome. However, considering that it is not always possible to predict numbers like that, the team has given Big Foot a club option as well.

If the pitcher finds himself throwing under 140, he has a conditional club option of $14 million that he can go for, with the same buyout amount as the previous predicament. It all depends on whether he decides to stick with the team in 2025 or not. Do you think that the Boston Red Sox have made a fair deal as the first move after the winter meetings? Let us know in the comments below!

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