Toronto Blue Jays outfielder Vladimir Guerrero Jr. has signed a 14-year, $500 million contract extension with the team, avoiding free agency. The deal includes a staggering $325 million signing bonus, which represents 65% of the total contract value.
Guerrero, 26, will receive the remaining $175 million in salary over the term of the deal, distributed in varying annual amounts. The Blue Jays’ decision to pay out such a large percentage of the contract in signing bonuses is seen as tax-friendly for Guerrero, who resides in Florida and avoids state income tax.
The benefits to Guerrero include avoiding state taxes on the bonus and receiving guaranteed payments regardless of performance or league cancellations due to work stoppages or other unforeseen circumstances. For the Blue Jays, paying out more in signing bonus than salary may offer some accounting benefits, although these are unclear.
Guerrero Jr. was involved in every aspect of the negotiations, according to team general manager Ross Atkins. The two sides worked together to find a mutually beneficial agreement, which came together after several days of discussions.
Source: https://www.nytimes.com/athletic/6267788/2025/04/09/vladimir-guerrero-blue-jays-signing-bonus