Vladimir Guerrero Jr. Reportedly Gets $325M Signing Bonus in $500M Blue Jays Contract

Toronto Blue Jays star slugger Vladimir Guerrero Jr.'s massive $500 million contract extension reportedly includes a hefty signing bonus.

According to The Athletic's Ken Rosenthal, the Blue Jays will pay $325 million of the deal to Guerrero in a signing bonus, while the remaining $175 million will be paid in salary. Rosenthal added that both the signing bonus and salary "will be distributed in varying annual amounts over the 14-year term of the deal."

Guerrero spoke to reporters about his new deal on Wednesday. He was asked what advice he received from his Hall of Fame father, Vladimir Guerrero Sr., and he said with a smile, "Trust god. My dad told me to trust god, and to get the last penny that I could from the organization."

While a $325 million signing bonus is pretty much unheard of in the world of sports, Rosenthal explained that the move keeps Guerrero's impact on the team's spending at a relatively low figure.

"Baseball’s collective-bargaining agreement does not restrict the amount a team can include in a signing bonus," Rosenthal stated. "The bonus, however, is included in the calculation of a player’s average annual value for luxury tax purposes. Including salary, Guerrero’s annual luxury-tax hit will be $35.71 million."

Rosenthal also noted that Guerrero will benefit from it in multiple ways. Signing bonuses are typically allocated to an athlete's state of residence, and Guerrero resides in Florida, a state with no income tax. By converting 65 percent of his $500 million deal into a signing bonus, he will presumably save millions from avoiding state taxes.

Also, since signing bonuses are guaranteed regardless of the performance of services, Guerrero would still receive his annual earnings if games are canceled due to a work stoppage or any other reason. The league's collective bargaining agreement expires on Dec. 1, 2026, so a work stoppage is a possibility if a new agreement isn't reached before then.

Rosenthal added that Guerrero will receive an initial signing bonus payment of $20 million within 30 days. However, that money will not count against Toronto's luxury-tax payroll this season because his new deal runs from 2026 to 2039, and a signing bonus only applies to the luxury-tax payroll during the guaranteed years of the contract under the current CBA.