Some Financial Particulars on the Complicated Shota Imanaga Deal

Now we know more of the particulars about the deal Shota Imanaga is signing with the Chicago Cubs.

It’s easy to see why it was reported as “complicated.”

Here’s how ESPN’s Jesse Rogers describes the fundamental nature of the contract:

“The Cubs are in agreement with lefty Shota Imanaga on a 4 yr, $53 million deal, sources tell ESPN. After 2 yrs, the team has the option to extend the contract to $80 million over 5 yrs. If they decline, Imanaga has the option to become a free agent. Same after third yr.”

So, let’s break this down, starting with the initial deal: four years and $53 million. A mere $13.25 million AAV is outstanding, though it would adjust upward if he winds up getting that full $80 million over five years.

It sounds like that $53 million is actually the guarantee, by the way, not the earlier-reported $30 million (if Rogers’ phrasing there is correct – update, it is), since Imanaga is the one who can first cut the deal short and take less. So, if he breaks in year one or two, he is guaranteed $53 million total over four years – that’s how you read Rogers’ report, right? That’s what is usually considered the player’s guarantee: the minimum he can get if he wants. And this suggests there weren’t QUITE as serious injury concerns involved as we might’ve earlier worried.

If Imanaga is awesome in those first two years, though, the Cubs can basically tear up the final two years of the deal, and make it like a new three-year deal (we’ll have to see the breakdown of the dollars in each year to know the amount). It’s not just a $27 million team option, mind you – because if the Cubs DON’T do it, then Imanaga can walk away. It’s a unique structure. Not QUITE a team option, not QUITE a player option. It’s both. But not a mutual option. This is kinda fun to think about. I am loving the protections built into this deal for both sides.

So, basically, the possible outcomes look something like …

Of course, performance and health aren’t crystal clear things, and then apparently this whole dance gets done again after year three, so I’m gonna leave it there for now. Complicated indeed. We still don’t even know about escalators, the individual year price tags, and the like. (The posting fee, by the way, is based on the full amount Imanaga actually winds up getting paid, so that can change, too! Looks like it’ll be in the $10 to $13 million range, most likely.)

More coming soon …