Paul Skenes signed a 1-year contract with the Pirates on July 19, 2023 for $9.2 million after being drafted #1.
1.July is in the middle of the MLB season. What happens when the contract nears its end?
2. Skenes is on a clear trajectory to the majors, but remains in the minors. How does it benefit the Pirates to keep him there?
Obviously they’re doing what’s best for the Pirates, but I’d like to know how it all works from the inside financially bc I have no idea.
In: Economics
Paul Skenes didn’t sign a one year, $9.2 million contract. He signed with a $9.2 million signing bonus, and a minor league contract, which is standard for draft picks. Minor league contracts do not pay well (compared to the majors). Most players play in the minors for a few seasons, earning very little money, and then eventually make it to the big leagues. Once they’re in the big leagues, they have a pro contract for the minimum amount, prorated for how long they’re there.
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