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Details of Nationals right-hander Max Scherzer’s contract

January 22, 2015 GMT
Washington Nationals pitcher Max Scherzer, second from left, poses for photographs during an introductory news conference at Nationals Park, on Wednesday, Jan. 21, 2015, in Washington. Scherzer signed a $210 million, seven- year contract to join the Nationals. From left, Nationals manager Matt Williams, Scherzer, Scherzer's agent Scott Boras, and Nationals general manager Mike Rizzo. (AP Photo/Evan Vucci)
Washington Nationals pitcher Max Scherzer, second from left, poses for photographs during an introductory news conference at Nationals Park, on Wednesday, Jan. 21, 2015, in Washington. Scherzer signed a $210 million, seven- year contract to join the Nationals. From left, Nationals manager Matt Williams, Scherzer, Scherzer's agent Scott Boras, and Nationals general manager Mike Rizzo. (AP Photo/Evan Vucci)

WASHINGTON (AP) — Because of deferred money, pitcher Max Scherzer’s $210 million, seven-year contract with the Washington Nationals has a present-day value of $191.4 million by the calculations of both Major League Baseball and the Major League Baseball Players Association.

The structure is designed to pay him $15 million annually for 14 years and shield much of the money from District of Columbia income tax, since he plans to become a Florida resident.

Scherzer gets a record $50 million signing bonus, of which $5 million is due this year and $15 million each in 2019, 2020 and 2021. The money is due in 12 equal semimonthly installments in those years from April through September.

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He receives salaries of $10 million this year, $15 million in each of the next three seasons and $35 million in each of the final three years. That $105 million total due over the final three years will be deferred without interest and paid in $15 million installments each July 1 from 2022 through 2028.

Because of the deferred money, the deal has a present-day value of $191,401,086, by Major League Baseball’s calculation. In yearly payrolls, which include salaries and prorated shares of signing bonuses, both discounted for deferred money, Scherzer’s value is $17,142,857 this year, $22,142,857 for each of the following three years, $37,405,562 for 2019, $35,920,616 for 2020 and $34,503,480 for 2021.

His signing bonus and the salaries for the first four seasons are not discounted because they are paid by the time the contract expires. The $35 million salaries for the final three years are discounted to $30,262,705 for 2019, $28,777,759 for 2020 and $27,360,623 for 2021.

The Major League Baseball Players Association calculates the present-day value at $191,409,858.

Scherzer’s deal counts as $28,689,376 annually for purposes of baseball’s luxury tax, which uses a different methodology.

His contract also includes several award bonuses. Scherzer would get $500,000 each time he wins an MVP award, $250,000 for finishing second, $150,000 for third, $100,000 for fourth and $75,000 for fifth. He would earn similar bonuses for Cy Young finishes.

He would receive $250,000 if he is World Series MVP, $150,000 for League Championship Series MVP and $100,000 for making the All-Star game, winning a Gold Glove and winning a Silver Slugger.

He also gets a hotel suite on road trips.