The Arizona Diamondbacks Shock the Baseball World by Inking Deal with Corbin Burnes
At the stroke of midnight marking the new year, the Arizona Diamondbacks made a historic move, surpassing their own records: They inked former Cy Young Award winner Corbin Burnes to a six-year, $210 million contract. This agreement surpasses their 2015 deal with pitcher Zack Greinke, which was worth six years and $206.5 million.
Similar to numerous contracts signed this off-season, and numerous past ones, Burnes' contract features a substantial amount of deferred compensation. The Associated Press reports that there's a $64 million deferral, along with a $10 million signing bonus payable within 30 days after Major League Baseball approves the agreement. Burnes is set to receive an additional $20 million in each of 2025 and 2026, with a $10 million deferral each year.
The essence of the deal lies in Burnes' ability to opt-out after the second year. At an average annual value of $35 million, Burnes ranks fifth among the highest-earning starting pitchers. He trails Zack Wheeler of the Phillies ($42 million), Jacob deGrom of the Rangers ($37 million), Blake Snell of the Dodgers ($36.4 million), and Gerrit Cole of the Yankees ($36 million). Keep in mind, Max Scherzer and Justin Verlander both earned $43.3 million annually, but their contracts have since expired, leaving them as free agents who may not see the same compensation. As baseball's financial landscape continues to evolve, Burnes may find himself underpaid after the 2026 season. If so, he has the option to renounce the remaining $140 million over four years and explore the open market. Alternatively, he may use the opt-out as leverage to renegotiate with Arizona, potentially adding years or additional dollars to each season.
If Burnes decides to exercise his opt-out after 2026, the $20 million he deferred in 2025 and 2026 would be disbursed in $10 million installments on November 1, 2027, and 2028, respectively. If he fulfills the entire six-year contract, he'd receive $10 million on November 1 of 2031 and 2032, along with $11 million on that date from 2033 to 2036.
Burnes' contract features a no-trade clause through March 31, 2027, ensuring he pitches in Arizona until his opt-out date. If he stays with the Diamondbacks, he may designate a list of 14 teams he cannot be traded to without his consent from March 15, starting from every year.
According to MLB.com, Burnes received offers with more substantial compensation elsewhere. However, his preference for living in Scottsdale during the off-season and Arizona's 2.5% flat state income tax rate may have swayed his decision. Compared to California's 12.3% tax rate at a comparable salary level, Arizona offered a significantly better tax environment. If Burnes had chosen the San Francisco Giants, a team reportedly interested in his services, he would have been subject to California's tax rate. In Baltimore, the tax rate would have been 5.75%, while Burnes was taxed at 7.65% in Wisconsin, where he began his career.
Given his status as the top free-agent pitcher this off-season, Burnes entertained offers from numerous teams outside Arizona. However, the Diamondbacks' commitment to reinforce their pitching roster to compete in a challenging division, led by owner Ken Kendrick, president Derrick Hall, and general manager Mike Hazen, won him over. The Diamondbacks made a bold move, acquiring the right player at the right time, betting on Burnes as the key to their success.
- Zack Greinke, who previously signed a notable contract with the Diamondbacks in 2015, has a contract value that is now surpassed by Corbin Burnes' new deal.
- Scott Boras, Burnes' agent, negotiated a contract with the Diamondbacks that includes a substantial amount of deferred compensation and an opt-out clause after the second year.
- The San Diego Padres and the Los Angeles Dodgers were among the teams that reportedly showed interest in Burnes, but he chose the Diamondbacks due to preferences for living in Scottsdale and Arizona's tax environment.
- If Burnes opts out after 2026, he can potentially earn more money by exploring the open market or renegotiating with the Diamondbacks, depending on his performance and the team's financial capabilities.
- Derrick Hall, Ken Kendrick, and Mike Hazen, the Diamondbacks' owner, president, and general manager, respectively, made a significant commitment to reinforcing their pitching roster with the signing of Burnes, aiming to compete in a challenging division.
