The New York Yankees and Derek Jeter have reportedly agreed to a three-year deal worth about $51 million.
There is also an option for a fourth year that is worth less than the $17 million that he will earn on average for the first three years of the deal.
According to Sweeney Murti of WFAN, there are many elements that will determine the final number for the option in Jeter's deal.
After signing closer Mariano Rivera, the Yankees managed to bring back Jeter and this move is important for both sides. Yankee fans can relax and the Yankee organization does not have to worry about Jeter going to another team.
The YES Network's Jack Curry has reported that both Jeter and Rivera have agreed to defer some earnings in their deals in order to push their deals along.
Finishing these deals with Mo' and Jeter were important because now general manager Brian Cashman knows his budget heading into the winter meetings in Orlando, Florida.
It has been reported that the Yankees are going to make a move for free agents Cliff Lee, and possibly outfielder Carl Crawford.
Things got ugly between the Yankees and Derek Jeter because Jeter and his agent were asking for a contract in the range of $22-24 million a year.
Brian Cashman and the Yankees were not willing to budge from their original three-year $45 million deal. It seems that the deciding factor was the option year, and adding $2 million more per year.
The captain will return in 2011. Now it is time for the Yankees to make moves on big-name free agents such as Cliff Lee and Carl Crawford.
Source: Sweeney Murti on Twitter, Jack Curry of the YES Network