Lee Signs Extension

[Jennifer]

The Tribe announced today that Cliff Lee signed a three year extension (through the 2009 season) with a club option for 210. AP reports the three year deal at $14 million.

Tribe Press Release
http://cleveland.indians.mlb.com/NASApp/mlb/news/press_releases/press_release.jsp?ymd=20060808&content_id=1598925&vkey=pr_cle&fext=.jsp&c_id=cle

AP Story
http://www.cleveland.com/sportsflash/tribe/index.ssf?/base/sports-22/115504976449270.xml&storylist=indians

[consigliere]

This is a good deal for both sides.....and I like the club option for 2010. Lee pretty much is gauranteed to be here under our control for 4 more seasons.

[Jennifer]

This is a good deal for both sides.....and I like the club option for 2010. Lee pretty much is gauranteed to be here under our control for 4 more seasons.

It was a good deal for both sides. The Tribe assumed all the downside risk, established budgetry certainty with respect to Lee's salary through the arbitration years and obtained an option for the first FA year that should be below market price if Lee is a number three starter or perhaps a very good number four. Lee in exchange protected himself against all downside risk and ensures himself of being able to spend the rest of his life financially comfortable.

According to Cot's Baseball Contracts Lee's 2006 salary is increased from $406,000 to $750,000. 2007 will be $2.75 million, 2008 will be $3.75 million and 2009 will be $5.75 million. This sums to $13 million and the remaining million signing bonus is paid over the 2007-2009 seasons. The 2010 option according to Cot's is $8 million with a $1 million buyout.

http://mlbcontracts.blogspot.com/2005/01/cleveland-indians_20.html
It is these kinds of deals that have to be made if the "Plan" is to succeed if the Tribe is to be a contender for a sustained period of time as opposed to a one year wonder.