Orlando Hudson’s Creative Contract
I am a big fan of Orlando Hudson. In a baseball world where analysts sweat over “prospects” who often never bring back any return on the huge investments teams pump into attaining them, it is nice to see a player make it who was selected in the 43rd round of the draft.
Tony Jackson of the Los Angeles Daily News broke the news on the terms of Hudson’s contract with the LA Dodgers.
- $380,000 signing bonus, deferred without interest to a time not designated
- $3 million base salary for 2009
- $150,000 each for 150 and 175 plate appearances
- $200,000 each for 200, 225, 250, 275 and 300 plate appearances
- $250,000 each for 325, 350, 375, 400, 425, 450, 475, 500, 525, 550, 575 PAs
- $10,000 for EVERY plate appearance from PA #576 through PA #632. That’s 57 PAs for total of $570,000.
- also, BEGINNING WITH 550 PAs, every one of these incentives, including that $570k, is deferred without interest to a time not designated. And the contract requires Hudson to donate $25,000 to the Dodgers Dream Foundation.
Creative structuring by Hudson’s agent, Paul Cohen Greg Genske, who had the unpleasant job of finding a place for his client in this troublesome economy. Hudson is not a superstar like Manny, A-Rod, or Peavy, but he is a solid role player. That type of player has had trouble finding teams willing to spend money on him this offseason.
If Hudson reaches each benchmark, he will end up with a one-year salary of $8 million, which does not seem all-that unlikely (pending he stay healthy throughout the season). In 2008, he made $6.25 million with Arizona. The year before that, Hudson made $3.9 million.
This is not the first time that I am giving Even though Paul Cohen did not negotiate Hudon’s contract, I am going to keep my props up here anyway. So, props on this blog to Cohen for his former negotiating skills. On May 8, 2008 I praised Cohen for securing his client, Troy Tulowitzki, a six-year, $30 million contract with the Rockies. Tulowitzki had an unimpressive first year in the MLB in 2006, but put up very strong numbers in 2007. Cohen decided to make sure his client got paid for that work and not allow a bad season (like 2008) lower Troy’s value.
I hope that Orlando Hudson also ends up benefitting from Cohen’s Genske’s creative negotiation tactics.
(Gotta love the strikethrough button)