Vladimir Guerrero Jr. Sought $500MM NPV On Extension

Last week, Vladimir Guerrero Jr. told ESPN that his asking price in extension negotiations with the Blue Jays was south of $600MM. The star first baseman didn’t publicly identify his exact demand, though he noted he was looking for a 14-plus year deal.

Ken Rosenthal of The Athletic provides more specifics, reporting that Guerrero wanted a net present value of $500MM to bypass testing the open market. That could have taken the form of an even $500MM+ without deferrals or a deferred deal with a loftier overall guarantee that would still have pushed the NPV to half a billion dollars. A hypothetical 14-year extension worth $500MM would come with an approximate $35.7MM annual value and would run through Guerrero’s age-39 season (assuming it began this year).

The deferrals were evidently a sticking point. Jon Heyman and Joel Sherman of The New York Post report that Toronto offered a deal that was in the $500MM range overall but included deferred money. According to that report, the NPV would have landed between $400MM and $450MM. Shi Davidi of Sportsnet writes that the NPV on the team’s offer was close to $450MM, suggesting they came in at the higher end of the range initially reported by The New York Post.

That would still have represented the third-largest guarantee in league history. Juan Soto easily holds the record at $765MM without deferrals. The Shohei Ohtani deal is respectively valued around $461MM and $438MM by the league and Players Association, respectively. Guerrero sought a number that would have placed him behind only Soto in net present value. His reported asking price was nowhere near Soto money, which so handily shattered prior precedent that it may be an outlier for a while. Still, it seemingly landed upwards of $50MM higher (in NPV terms) than the Jays were willing to go. Guerrero indicated he wasn’t interested in continuing negotiations beyond the opening of Spring Training. He has left the door open to reconsidering but said at the start of camp that he anticipates testing free agency.

The Jays have at least expressed a willingness to stretch the budget beyond Guerrero’s asking price for star players. They were seemingly willing to match the contract that Ohtani accepted from the Dodgers. Their precise offer to Soto isn’t clear but is believed to have been between $600MM and $700MM. That shows they’re not entirely averse to this kind of signing, yet it’s also a fact that the largest contract in franchise history remains the comparatively modest $150MM George Springer deal.

Toronto’s latest offer represents a significant jump from where they opened talks. Guerrero said over the offseason that the Jays’ offers before the Soto bidding were in the $340MM range. While the Soto price point didn’t make them willing to write a blank check for Guerrero, it seemingly contributed to them going $60MM+ above where they had been in terms of present value.

Guerrero is a career .288/.363/.500 hitter. He’s coming off his second-best season, as he raked at a .323/.396/.544 clip with 30 homers a year ago. At his best, he looks like one of the top five hitters in the game. He hasn’t quite maintained that level on an annual basis, though. He finished among the top six in MVP balloting in 2021 (finishing runner-up that year) and ’24. In the intervening two seasons, he hit .269/.341/.462 across nearly 1400 plate appearances. That’s still very good but not the kind of overwhelming numbers that’d force teams to essentially overlook questions about his defensive profile.

Assuming he gets to the market, Guerrero is likely to be the top free agent in the class. Kyle Tucker is arguably a better overall player, but the Cubs outfielder will hit free agency at age 29. Guerrero will get to the market at 27. The two-year age gap gives Guerrero the better chance to land a deal that stretches beyond a decade despite teams’ general reluctance to make extremely long commitments to first basemen.