The New York Mets Secure Juan Soto for Significant $765 Million Deal, Potentially Expanding to $805 Million
New York clinched the Juan Soto free agency bidding war but it's not the Yankees.
On a late Sunday, just prior to the commencement of the Baseball Winter Meetings in Dallas, news surfaced that Soto sealed a groundbreaking 15-year, $765 million agreement with the Mets. This contract includes a substantial $75 million signing bonus. If Soto chose not to exercise his opt-out clause in five years at the end of the 2029 season, the contract will escalate, reaching a staggering $805 million.
However, the agreement is subject to a medical evaluation.
Breaking the records, this contract now tops the 1-year, $700 million deal Shohei Ohtani secured last off-season with the Los Angeles Dodgers. The sport's landscape now boasts the two most expensive contracts, with Lionel Messi's 4-year, $674 million deal with Barcelona ranking third.
The deal indicates that Soto reigns supreme in Major League Baseball in terms of the highest Annual Average Value (AAV). At $51 million, this AAV surpasses the $46,081,476 AAV recorded by Ohtani, despite the significant deferred compensation incorporated into Ohtani's contract.
Additionally, this 15-year contract stands as the longest in Major League Baseball's history.
The New York Yankees held close discussions with Soto, and as per reports, they extended a 16-year, $760 million proposal, offering an AAV of $47.5 million. Moreover, the Red Sox reportedly offered Soto $700 million.
At the tender age of 26, this agreement draws parallels with the 10-year, $252 million contract that Alex Rodriguez signed with the Texas Rangers in 2000, when he was 25. Now ranked 20th by total value, Rodriguez's previous record has seen a significant fall.
At the age of 23, Soto was presented with a $440 million offer to remain with the Washington Nationals, but he turned it down. His successful free agency stint exemplifies this decision. Last season, he concluded third in the AL MVP voting, was selected to the All-Star Game, and won a Silver Slugger award. He stood out as the American League's leading run-scorer with 128, posting a remarkable 8.1 WAR, the highest in his career. This ranked him fourth among all players in baseball last season by WAR, following only Aaron Judge, Shohei Ohtani, and Bobby Witt, Jr.
This acquisition signifies that billionaire Mets owner Steve Cohen is determined to bring a World Series title back to the club. Since acquiring the team for $2.475 billion in 2020, Cohen has been actively investing in some of baseball's top talents. This extravagant spending has resulted in a substantial early-phase pricing. According to recent valuations by Our Website, the Mets stand at sixth in value, with a $3 billion market worth, boasting a sizable debt/value component of 10%. Revenues for the 2023 season reached $393 million, with an operating income of -$292 million.
The New York Mets' signing of Juan Soto breaks the record for the highest paid players in MLB, surpassing Shohei Ohtani's 1-year, $700 million deal with the Los Angeles Dodgers. This 15-year, $765 million contract with a $75 million signing bonus also makes it the longest in MLB history. Despite the New York Yankees offering a 16-year, $760 million proposal to Soto, he chose to join the Mets, further highlighting their commitment to building a strong team. This move also places the Mets' owner, Steve Cohen, among the highest spenders in MLB free agency, aiming to bring a World Series title back to the club.
