Troy Tulowitzki reached the Majors before a year after being drafted by the Colorado Rockies. He was the seventh overall pick of the 2005 MLB First-Year Player Draft. In 2008, Tulo signed a six-year, $30 million contract with the Rockies. Tulo’s agent, Paul Cohen, knew that he was employing a safe and secure strategy, but it seems to be something that his client was looking for.
In 2008, Cohen stated, “Unless you want to live in the middle of Beverly Hills or Fifth Avenue, you’re set for life. If you just get 5% of your investment, you never have to work another day in your life.” 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. At the time, I thought it was a smart move by Cohen.
The deal that Cohen just secured for Tulowitzki is even more brilliant. Technically it is not a new deal, but instead, an extension to the contract Tulo signed in 2008. The extension is for six-years and $120 million. With the four years remaining on his 2008 contract, that makes it a total of ten-years and $160 million left to be played and paid.
Again, it was smart timing by Cohen. Tulo finished in fifth place in the National League’s MVP voting and hit a ridiculous fifteen homeruns and forty RBI in September. It is all about capitalizing on an opportunity when you are perceived to be most valuable.
Maybe a $200 million deal would’ve been possible, but Tulo could have also cost himself money over a period of time had he declined the offer by the Rockies. Not all decisions are based entirely on money, and to most people, $160 million is more than enough to be happy and never worry about money again in their lives.