Vladimir Guerrero Jr. has officially inked a 14-year, $500 million extension with the Toronto Blue Jays through the 2039 season. The true headline-grabber? An unprecedented $325 million signing bonus that accounts for 65% of the total contract value, according to The Athletic’s Ken Rosenthal.
THE. FRANCHISE.
— Toronto Blue Jays (@BlueJays) April 9, 2025
OFFICIAL: We’ve agreed to terms with 4x All-Star, 2x Silver Slugger, 2x All-MLB First Team Member, 2x Tip O'Neill Award Winner, Hank Aaron Award Winner, and Gold Glover Vladimir Guerrero Jr. on a 14-year contract extension! pic.twitter.com/BKGkidltw1
This massive signing bonus — which will be distributed throughout the deal — carries significant implications for both Guerrero and the organization. Rosenthal reports that as a Florida resident, the first baseman will avoid paying state income tax on the bonus, resulting in substantial financial savings.
“For Guerrero, the benefit of getting the bulk of his money in a signing bonus would appear twofold,” Rosenthal explains. “Signing bonuses are allocated to an athlete’s state of residence. Guerrero resides in Florida, a state without income tax. So, he presumably will avoid paying state tax on the bonus, generating millions in savings.”
The structure provides another crucial advantage.
“The other benefit is that signing bonuses are not contingent on the performance of services,” Rosenthal notes. “Guerrero would receive his annual payout if Major League Baseball canceled games due to a work stoppage, a possibility with the sport’s collective bargaining agreement expiring on Dec. 1, 2026. He also would receive it if the league canceled games for some other reason, such as a pandemic.”
The Blue Jays finally locked down their 26-year-old cornerstone after months of uncertainty. Despite failing to reach an agreement during the offseason and Guerrero initially setting a spring training deadline for negotiations, the four-time All-Star kept dialogue open with Toronto executives.
The organization faced mounting pressure from fans concerned about losing the franchise cornerstone to free agency. With Guerrero’s new contract set to begin at the start of the 2026 season, the Blue Jays must now focus on building a World Series contender around their $500 million man.
