Gordon and the Royals agreed on a four-year extension through 2015 that will pay him $37.5 million. The deal includes a 2016 option worth $12.5 million.
The annual value of the deal will increase each season. In 2012 he will earn $6 million, and then he will earn $9 million, $10 million and $12.5 million in each of the next three seasons, respectively.
This deal comes on the heels of Gordon's best season of his five-year career with the Royals.
Once considered a sure-fire prospect, Gordon's stock dropped dramatically after playing in just 123 games combined between 2009 and 2010.
He silenced all doubters last season, though. He put together a line of .303/.376/.502 with 23 home runs and 87 RBI.
Gordon really filled up the stat sheet in 2011, scoring 101 runs, tallying 185 hits, roping 45 doubles, hitting four triples and stealing 17 bases.
His all-around fantastic season earned him 21st place in the AL MVP voting.
Not only was his offense superb, but his defense in left field earned him his first career Gold Glove.
By only making three errors (.991 fielding percentage) and recording an amazing 20 outfield assists, Gordon was able to beat out Brett Gardner for the final Gold Glove for outfielders.
All signs point to this being a good deal for both Gordon and the Royals, as both are hoping to turn the Royals back into a contender.
With Gordon in place as one of the main cornerstones of the team, they seem to be moving in the right direction.