Why are MLB prospects signing record contracts? 'Smart business' in Age of Dodgers

Another day, another record-setting rookie contract extension, setting up another round of wild theories.

It was the Detroit Tigers’ turn Wednesday to sign their prized young player, infielder Kevin McGonigle, to an eight-year, $150 million contract.

It comes a week after Pittsburgh Pirates’ shortstop Konnor Griffin’s nine-year, $140 million contract. Two weeks after the Milwaukee Brewers signed minor-league shortstop Cooper Pratt to an eight-year, $50.75 million contract.

And three weeks after the Seattle Mariners signed their prized infielder prospect Colt Emerson to an eight-year, $95 million deal without setting foot in the big leagues.

Just like that, there’s $435.5 million worth of contracts to four unproven players, none signed by the rich Los Angeles Dodgers, New York Mets or Yankees.

So, what’s the explanation?

Well, executives, GMs and agents around the game say teams think they are making shrewd business investments. There’s nothing sinister behind these contracts. There’s no hidden agenda with a likely work stoppage eight months away. It has nothing to do with a potential salary floor for small- and mid-market teams.

It has everything to do with these same small- and mid-market teams looking out for their future, knowing that if they don’t act now, they’ll be losing these players when they hit free agency.

“Just look at who’s doing these contracts," one GM told USA TODAY Sports. “It’s the same teams. These are the same teams that aren’t the most desirable places for free agents, so they’re locking up their guys now.

“That’s all it is. It’s not that complicated."

Kevin McGonigle made the Tigers' opening day roster.

The GM spoke on the condition of anonymity for competitive reasons.

Indeed, it's not as if these franchises are premier destinations for free agents.

The Brewers, who reside in MLB’s smallest market, havent signed a free agent for more than the five-year, $80 million contract they gave outfielder Lorenzo Cain in 2018. Yet, they’ve been aggressive signing their own players to extensions, from All-Star outfielder Christian Yelich’s nine-year, $215 million extension to outfielder Jackson Chourio’s eight-year, $82 million contract before he played an MLB game.

Pittsburgh has hardly been a hotbed for free agents. The Pirates’ largest free-agent contract was a three-year, $39 million to pitcher Francisco Liriano in 2015. Ryan O’Hearn’s two-year, $29 million free-agent contract this winter was their largest for a position player since Russell Martin’s two-year, $13 million deal in 2013. Their best path to keeping their talent is with extensions, signing outfielder Bryan Reynolds’ eight-year, $106.75 million deal in 2023 and All-Star outfielder Andrew McCutchen to a six-year, $51.5 million extension in 2012.

(Salaries in present-day value calculated by MLB Labor Relations Department, impacted by deferrals and signing bonuses)

1. Juan Soto, Mets - $61,875,000

2. Cody Bellinger, Yankees - $42,500,000

3. Bo Bichette, Mets - $42 million

3. Zack Wheeler, Phillies – $42 million

5. Vladimir Guerrero Jr., Blue Jays - $40,214,286

6. Aaron Judge, Yankees – $40 million

7. Anthony Rendon, Angels - $38,571,429

8. Jacob deGrom, Rangers - $38 million

9. Mike Trout, Angels – $37,116,667

10. Gerrit Cole, Yankees – $36,000,000

11. Jose Altuve, Astros – $33 million

11. Kyle Tucker, Dodgers - $33 million

13. Tyler Glasnow, Dodgers - $32,500,000

14. Francisco Lindor, Mets - $32,477,277

15. Tarik Skubal, Tigers – $32 million

16. Carlos Correa, Astros – $31,500,000

16. Corey Seager, Rangers - $31,500,000

18. Sonny Gray, Red Sox – $31 million

19. Corbin Burnes, Diamondbacks – $30,790,069

20. Giancarlo Stanton, Yankees - $29 million

21. Nathan Eovaldi, Rangers – $28,536,643

22. Shohei Ohtani, Dodgers – $28,206,684

23. Dansby Swanson, Cubs – $28 million

24. Carlos Rodon, Yankees – $27,833,333

25. Stephen Strasburg, Nationals (*retired) – $27,814,045

26. Bryce Harper, Phillies - $27,538,462

27. Trea Turner, Phillies – $27,272,727

28. Blake Snell, Dodgers - $27,152,056

29. Kris Bryant, Rockies - $27 million

30. Yordan Alvarez, Astros - $26,833,333

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(Salaries in present-day value calculated by MLB Labor Relations Department, impacted by deferrals and signing bonuses)

1. Juan Soto, Mets - $61,875,000

1 / 30

See the top 30 highest paid players in MLB baseball

(Salaries in present-day value calculated by MLB Labor Relations Department, impacted by deferrals and signing bonuses)

1. Juan Soto, Mets - $61,875,000

2 / 30

See the top 30 highest paid players in MLB baseball

2. Cody Bellinger, Yankees - $42,500,000

3 / 30

See the top 30 highest paid players in MLB baseball

3. Bo Bichette, Mets - $42 million

4 / 30

See the top 30 highest paid players in MLB baseball

3. Zack Wheeler, Phillies – $42 million

5 / 30

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5. Vladimir Guerrero Jr., Blue Jays - $40,214,286

6 / 30

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6. Aaron Judge, Yankees – $40 million

7 / 30

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7. Anthony Rendon, Angels - $38,571,429

8 / 30

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8. Jacob deGrom, Rangers - $38 million

9 / 30

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9. Mike Trout, Angels – $37,116,667

10 / 30

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10. Gerrit Cole, Yankees – $36,000,000

11 / 30

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11. Jose Altuve, Astros – $33 million

12 / 30

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11. Kyle Tucker, Dodgers - $33 million

13 / 30

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13. Tyler Glasnow, Dodgers - $32,500,000

14 / 30

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14. Francisco Lindor, Mets - $32,477,277

15 / 30

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15. Tarik Skubal, Tigers – $32 million

16 / 30

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16. Carlos Correa, Astros – $31,500,000

17 / 30

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16. Corey Seager, Rangers - $31,500,000

18 / 30

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18. Sonny Gray, Red Sox – $31 million

19 / 30

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19. Corbin Burnes, Diamondbacks – $30,790,069

20 / 30

See the top 30 highest paid players in MLB baseball

20. Giancarlo Stanton, Yankees - $29 million

21 / 30

See the top 30 highest paid players in MLB baseball

21. Nathan Eovaldi, Rangers – $28,536,643

22 / 30

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22. Shohei Ohtani, Dodgers – $28,206,684

23 / 30

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23. Dansby Swanson, Cubs – $28 million

24 / 30

See the top 30 highest paid players in MLB baseball

24. Carlos Rodon, Yankees – $27,833,333

25 / 30

See the top 30 highest paid players in MLB baseball

25. Stephen Strasburg, Nationals (*retired) – $27,814,045

26 / 30

See the top 30 highest paid players in MLB baseball

26. Bryce Harper, Phillies - $27,538,462

27 / 30

See the top 30 highest paid players in MLB baseball

27. Trea Turner, Phillies – $27,272,727

28 / 30

See the top 30 highest paid players in MLB baseball

28. Blake Snell, Dodgers - $27,152,056

29 / 30

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29. Kris Bryant, Rockies - $27 million

30 / 30

See the top 30 highest paid players in MLB baseball

30. Yordan Alvarez, Astros - $26,833,333

The Mariners, who have had trouble attracting hitters to Seattle after their ill-fated 10-year, $240 million contract for Robinson Cano, wasted little time signing Julio Rodriguez to a 12-year, $209.3 million extension five months into his Rookie of the Year season in 2022. They also struck gold when they signed catcher Cal Raleigh to a six-year, $105 million extension last March, before his record-setting 60 home run season for a catcher and runner-up finish to Aaron Judge in the AL MVP race. The contract has already saved the Mariners tens of millions considering Raleigh makes just $11 million this year and will earn $12 million in 2027.

“It’s the same teams signing players to extensions, knowing that if they don’t lock them up," one executive said, “they’re going to lose them. They don’t have the luxury of waiting to see if they can out-bid other teams in free agency.

“Really, it’s smart business."

There’s a reason why the Cincinnati Reds would love to lock up rookie first baseman Sal Stewart and the Cleveland Guardians with rookie outfielder Chase DeLauter, too. If they don’t pay them now, will they have the opportunity to keep them later?

These teams wouldn’t be offering extensions if they didn’t believe their players would out-perform their contracts, even with a player like Pratt, who had never played a game above Class AA until this year. There are definite risks involved. While the Mariners are gambling on Emerson to be a star, they previously swung and missed on an extension for Evan White.

If nothing else, agents say, these extensions are proving that the game is doing quite well financially.

“Look at the Pratt deal," one agent said. “This isn’t the Dodgers handing out $50 million to an unproven player. This is the smallest market club handing out $50 million well before they’d have really any obligation to play him. You have the smallest-market team willing to take that $50 million bet, which speaks to their belief in the player, but also speaks to how well the game is doing right now."

These mid- and small-market teams believe they can not only protect themselves in the future by buying out free-agent years, but also saving themselves money in salary arbitration, too. Tigers two-time Cy Young winner Tarik Skubals’ record-setting $32 million salary arbitration award sent shock waves in the industry. If Skubal can compare himself to any pitcher in the salary arbitration process by winning the Cy Young awards, what would have stopped Raleigh from comparing himself to Philadelphia Phillies catcher J.T. Realmuto’s $23.875 million contract a year ago?

And if the new collective bargaining agreement lowers free agency from six years to five years, or permits players to reach salary arbitration earlier than the standard three years, the extensions could look like a steal.

Time will tell.

But for now, the mid- and small-market teams who know they can’t keep up with the Dodgers and Yankees’ spending sprees, believe it’s a necessary gamble.

American baseball player Jackie Robinson (1919 - 1972) during his time with the Brooklyn Dodgers, on August 28, 1949.

Oval shaped portrait of a American baseball player Jackie Robinson as a young boy sitting on a chair, circa 1925.

American baseball player Jackie Robinson tends to his daughter Sharon in her baby carriage as wife Rachel looks on in the backyard of their home in Stamford, Connecticut, circa 1951.

A team portrait of the Brooklyn Dodgers, autographed by players including Jackie Robinson and Gil Hodges, New York City, the 1950s.

Brooklyn Dodger Jackie Robinson waits to bat during the 1952 World Series.

This undated file photo shows US baseball star Jackie Robinson signing a then-record contract to play for the Brooklyn Dodgers in New York.

This 1945 handout photo shows baseball legend Jackie Robinson wearing the Kansas City Monarchs uniform. Robinson has been chosen to receive posthumously March 2, 2005, the Congressional Gold Medal, the highest award Congress can bestow on a US civilian, for his accomplishments on the baseball diamond, as well as "his lifetime of breaking down barriers and his unending fight for justice," officials on Capitol Hill said in an earlier press release. US Senator John Kerry and US Representative Richard Neal, who co-sponsored legislation honoring Robinson, will be joined by the ballplayer's widow, Rachel Robinson, US President George W. Bush, and congressional leaders at the ceremony. Robinson broke baseball's "color line," becoming the first African American to play in the Major Leagues when he debuted with the Brooklyn Dodgers in 1947. Officials in Congress said, however, that he is also being honored for his contributions to the broader struggle for civil rights.

During a Barnstorming game, Jackie Robinson signed a baseball for Larry Brown at Martin" 's Stadium in Memphis (early to mid-50s of African-American significant leaguers against the Memphis Red Sox). Brown was a catcher and manager for the Red Sox over several decades and is featured in the film.

The first African-Americans to appear in an All-Star game, from left to right, Roy Campanella of the Brooklyn Dodgers, Larry Doby of the Cleveland Indians, Don Newcombe of the Dodgers, and Jackie Robinson of the Dodgers.

This 1947 handout photo shows US baseball legend Jackie Robinson wearing his Montreal uniform, stepping into the Brooklyn Dodgers' clubhouse for the first time.

An undated headshot of Jackie Robinson wearing his Boston Dodgers uniform and holding a bat.

Jackie Robinson crouches by the base and prepares to catch a ball in 1951. Throughout the course of his baseball career, Robinson played several positions on the infield as well as serving as outfielder.

Brooklyn Dodgers first baseman Jackie Robinson got the call from umpire Babe Pinelli for tagging out Cincinnati Reds infielder Eddie Miller, one month after Robinson broke baseball's color barrier in 1947.

This is a 1951 photo of Jackie Robinson, who played for the Brooklyn Dodgers baseball team, and Sharon Robinson, his daughter.

A historic photograph of Brooklyn Dodger Jackie Robinson, taken during spring training in Cuba, 1947 (credited to The Jackie Robinson Center for Physical Culture), on display at the Baseball Museum inside Keyspan Field, home of the minor league baseball team The Brooklyn Cyclones in Brooklyn, New York on Sept. 14, 2007. The last game before the Brooklyn Dodgers moved to Los Angeles was at Ebbets Field 50 years ago, on Sept. 24, 1957.

From left, Johnny Jorgensen, Eddie Stnaky, Pee Wee Reese, and Jackie Robinson, all members of the Baseball Hall of Fame.

Jackie Robinson, second from left, and Rachel Robinson, second from right, sit with their children at a resort pool.

Brooklyn Dodgers President Branch Rickey talking to his second sacker Jackie Robinson at a team training camp in Vero Beach, Florida on March 17, 1949.

American baseball player Jackie Robinson (1919 - 1972) grounds a ball in first place while warming up for an exhibition game against the New York Yankees, Ebbets Field, NYC, in the 1950s.

American baseball player Jackie Robinson and his wife Rachel play with son Jackie Jr. (L) and daughter Sharon in the backyard of their home in Stamford, Connecticut, circa 1951.

Portrait of Brooklyn Dodgers baseball team members poses in the dugout, 1954. From left, Americans Carl Furillo (1922 - 1989) (#6) and Gil Hodges (1924 - 1972) (#14), Cuban Sandy Amoros (1930 - 1992) (#15), and Americans Jackie Robinson (1919 - 1972) (#42), Duke Snider (#4), Pee Wee Reese (1918 - 1990) (#1), Jim Gilliam (1928 - 1978) (#19), Pete Wojey (1919 - 1991) (#35), and manager Walter Alston (1911 - 1984) (#24).

American baseball player Jackie Robinson (1919 - 1972) playing for the Brooklyn Dodgers on August 28, 1949.

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Jackie Robinson: A look at the life and career of MLB trailblazer

American baseball player Jackie Robinson (1919 - 1972) during his time with the Brooklyn Dodgers, on August 28, 1949.

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Jackie Robinson: A look at the life and career of MLB trailblazer

American baseball player Jackie Robinson (1919 - 1972) during his time with the Brooklyn Dodgers, on August 28, 1949.

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Jackie Robinson: A look at the life and career of MLB trailblazer

Oval shaped portrait of a American baseball player Jackie Robinson as a young boy sitting on a chair, circa 1925.

3 / 22

Jackie Robinson: A look at the life and career of MLB trailblazer

American baseball player Jackie Robinson tends to his daughter Sharon in her baby carriage as wife Rachel looks on in the backyard of their home in Stamford, Connecticut, circa 1951.

4 / 22

Jackie Robinson: A look at the life and career of MLB trailblazer

A team portrait of the Brooklyn Dodgers, autographed by players including Jackie Robinson and Gil Hodges, New York City, the 1950s.

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Jackie Robinson: A look at the life and career of MLB trailblazer

Brooklyn Dodger Jackie Robinson waits to bat during the 1952 World Series.

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Jackie Robinson: A look at the life and career of MLB trailblazer

This undated file photo shows US baseball star Jackie Robinson signing a then-record contract to play for the Brooklyn Dodgers in New York.

7 / 22

Jackie Robinson: A look at the life and career of MLB trailblazer

This 1945 handout photo shows baseball legend Jackie Robinson wearing the Kansas City Monarchs uniform. Robinson has been chosen to receive posthumously March 2, 2005, the Congressional Gold Medal, the highest award Congress can bestow on a US civilian, for his accomplishments on the baseball diamond, as well as "his lifetime of breaking down barriers and his unending fight for justice," officials on Capitol Hill said in an earlier press release. US Senator John Kerry and US Representative Richard Neal, who co-sponsored legislation honoring Robinson, will be joined by the ballplayer's widow, Rachel Robinson, US President George W. Bush, and congressional leaders at the ceremony. Robinson broke baseball's "color line," becoming the first African American to play in the Major Leagues when he debuted with the Brooklyn Dodgers in 1947. Officials in Congress said, however, that he is also being honored for his contributions to the broader struggle for civil rights.

8 / 22

Jackie Robinson: A look at the life and career of MLB trailblazer

During a Barnstorming game, Jackie Robinson signed a baseball for Larry Brown at Martin" 's Stadium in Memphis (early to mid-50s of African-American significant leaguers against the Memphis Red Sox). Brown was a catcher and manager for the Red Sox over several decades and is featured in the film.

9 / 22

Jackie Robinson: A look at the life and career of MLB trailblazer

The first African-Americans to appear in an All-Star game, from left to right, Roy Campanella of the Brooklyn Dodgers, Larry Doby of the Cleveland Indians, Don Newcombe of the Dodgers, and Jackie Robinson of the Dodgers.

10 / 22

Jackie Robinson: A look at the life and career of MLB trailblazer

This 1947 handout photo shows US baseball legend Jackie Robinson wearing his Montreal uniform, stepping into the Brooklyn Dodgers' clubhouse for the first time.

11 / 22

Jackie Robinson: A look at the life and career of MLB trailblazer

An undated headshot of Jackie Robinson wearing his Boston Dodgers uniform and holding a bat.

12 / 22

Jackie Robinson: A look at the life and career of MLB trailblazer

Jackie Robinson crouches by the base and prepares to catch a ball in 1951. Throughout the course of his baseball career, Robinson played several positions on the infield as well as serving as outfielder.

13 / 22

Jackie Robinson: A look at the life and career of MLB trailblazer

Brooklyn Dodgers first baseman Jackie Robinson got the call from umpire Babe Pinelli for tagging out Cincinnati Reds infielder Eddie Miller, one month after Robinson broke baseball's color barrier in 1947.

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Jackie Robinson: A look at the life and career of MLB trailblazer

This is a 1951 photo of Jackie Robinson, who played for the Brooklyn Dodgers baseball team, and Sharon Robinson, his daughter.

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Jackie Robinson: A look at the life and career of MLB trailblazer

A historic photograph of Brooklyn Dodger Jackie Robinson, taken during spring training in Cuba, 1947 (credited to The Jackie Robinson Center for Physical Culture), on display at the Baseball Museum inside Keyspan Field, home of the minor league baseball team The Brooklyn Cyclones in Brooklyn, New York on Sept. 14, 2007. The last game before the Brooklyn Dodgers moved to Los Angeles was at Ebbets Field 50 years ago, on Sept. 24, 1957.

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Jackie Robinson: A look at the life and career of MLB trailblazer

From left, Johnny Jorgensen, Eddie Stnaky, Pee Wee Reese, and Jackie Robinson, all members of the Baseball Hall of Fame.

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Jackie Robinson: A look at the life and career of MLB trailblazer

Jackie Robinson, second from left, and Rachel Robinson, second from right, sit with their children at a resort pool.

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Jackie Robinson: A look at the life and career of MLB trailblazer

Brooklyn Dodgers President Branch Rickey talking to his second sacker Jackie Robinson at a team training camp in Vero Beach, Florida on March 17, 1949.

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Jackie Robinson: A look at the life and career of MLB trailblazer

American baseball player Jackie Robinson (1919 - 1972) grounds a ball in first place while warming up for an exhibition game against the New York Yankees, Ebbets Field, NYC, in the 1950s.

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Jackie Robinson: A look at the life and career of MLB trailblazer

American baseball player Jackie Robinson and his wife Rachel play with son Jackie Jr. (L) and daughter Sharon in the backyard of their home in Stamford, Connecticut, circa 1951.

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Jackie Robinson: A look at the life and career of MLB trailblazer

Portrait of Brooklyn Dodgers baseball team members poses in the dugout, 1954. From left, Americans Carl Furillo (1922 - 1989) (#6) and Gil Hodges (1924 - 1972) (#14), Cuban Sandy Amoros (1930 - 1992) (#15), and Americans Jackie Robinson (1919 - 1972) (#42), Duke Snider (#4), Pee Wee Reese (1918 - 1990) (#1), Jim Gilliam (1928 - 1978) (#19), Pete Wojey (1919 - 1991) (#35), and manager Walter Alston (1911 - 1984) (#24).

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Jackie Robinson: A look at the life and career of MLB trailblazer

American baseball player Jackie Robinson (1919 - 1972) playing for the Brooklyn Dodgers on August 28, 1949.

This article originally appeared on USA TODAY: Kevin McGonigle contract extension is latest MLB fad for top prospects