GOODYEAR, Ariz. (AP) — Starter Homer Bailey agreed to a $105 million, six-year contract on Wednesday that avoids arbitration and will help the Cincinnati Reds with their cash flow by deferring some of the salary for short periods.
The deal includes a $25 million mutual option for 2020 with a $5 million buyout.
Bailey was the final major league player left in arbitration this year and reached the agreement a day before his scheduled hearing in Florida. He made $5.35 million last season and had asked for $11.6 million in arbitration. The Reds had offered $8.7 million, their biggest gap among their players in arbitration.
The 27-year-old Texan was coming off a season that included his second no-hitter.
Bailey gets salaries of $9 million this year, $10 million in 2015, $18 million in 2016, $19 million in 2017, $21 million in 2018 and $23 million in 2019. In an unusual twist, much of the annual salary will be deferred until the November after each season.
Bailey will be paid in-season amounts of $3 million this year, $4 million next year, $11 million in 2016, $12 million in 2017, $14 million in 2018 and $15 million in 2019.
If he is traded, his new team would have to pay all of the salary amounts during the season. Also, the $5 million buyout would be paid when either side decides not to exercise the option rather than having it deferred until November 2020.