How Derek Jeter Made $265 Million To Become The Second Highest-Paid Player In Baseball History
Derek Jeter got lucky right off the bat when 5 smaller-market clubs passed on him in the 1992 draft, including Houston, Cleveland, Montreal, Baltimore, and Cincinnati.
Instead, Jeter was drafted by a team that loves to hand out big contracts. Of the 11 highest-paid players of all time, 8 played at least part of their career with the Yankees.
Jeter also got drafted at the perfect time, playing most of his career with the Yankees under the free-spending George Steinbrenner, but after Steinbrenner's suspension which allowed others to build a contender.
Jeter struggled defensively in the minors, committing 56 errors his first full season and "crying every night" wondering if he made the right decision to leave home. But he eventually got better and was named Minor League Player of the Year in 1994.
SOURCE: MLB.com
In 1996, it wasn't clear if Jeter was ready to be a big leaguer but injuries to the starting shortstop and second baseman from the year before secured his job.
SOURCE: Newsday.com
Jeter went on to win Rookie of the year that season and was a key member of first Yankees championship since the 1970s.
Jeter made just $130,000 his rookie season and $1.43 million in his first 3 seasons combined.
After winning a second World Series in 1998, Jeter finally cashed in. He was eligible to have his salary determined by an arbitrator and Jeter won his case and a $5 million salary. The Yankees had offered $3.2 million.
Source: NYTimes.com
With 2 years to go before free agency, Jeter agreed to a 7-year, $118.5 million contract, which would have been the largest contract in MLB history at the time.
Source: CNN.com
However, George Steinbrenner didn't want to set the record and when negotiations for a $143 million contract between the Detroit Tigers and Juan Gonzalez fell apart, the deal with Jeter was scrapped.
Source: CNN.com
Instead, after winning another World Series, Jeter and the Yankees avoided arbitration, agreeing to a 1-year, $10 million contract.
But then Alex Rodriguez signed his record $252 million contract with the Rangers, so Jeter and the Yankees negotiated a 10-year, $189 million contract one year before he would have become a free agent.
Source: CNN.com
Even though some argued that Jeter was the best player in baseball, he said it was not important to be the highest paid.
Source: CNN.com
Jeter made $11 million in the first year of his big deal. But his salary rose steadily, maxing out in 2010 at $21 million, the highest single-season salary of his career.
Following the 2010 season, Derek Jeter became a free agent for the first time, after having already made $205.4 million in his career.
However, Jeter never really tested the free agency market and re-signed with the Yankees for $51 million over 3 years.
Jeter could have activated an $8 million option this season as part of his old deal. However, the Yankees gave him a 1-year, $12 million deal which actually helped their luxury tax situation.
Assuming Jeter doesn't change his mind, that brings his career earnings to $265.2 million.
Of course, Jeter has also earned millions off the field. It is estimated that Jeter will make $9 million this year from endorsement deals with companies such as Nike, Gatorade, Rawlings, and Steiner Sports. Not a bad career for no. 2.
SOURCE: Forbes.com
Now check out the rest of the highest-paid players in MLB history.
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