The St. Louis Cardinals and and Matt Holliday have finally come to terms on a deal that will pay about $120 million over the next seven season. That’s a lot of money, but Holliday is a good player. In seven years, if league revenues continue to grow as expected, $17 million per year won’t seem like such a big deal.
I have Holliday valued at $138 million over the contract term, so the contract makes sense. But, I got to thinking, as good as Holliday is, he’s a step below his teammate Albert Pujols. So, what is Pujols’s expected worth over the next seven years? The answer: $259 million, or $37 million a year. Wow!
How could Pujols be worth nearly twice as much as Holliday? The returns to winning are increasing, and Pujols’s marginal runs generated are in a range that is more valuable than Holliday’s runs. Assuming Pujols continues to play as he has, his next contract is going to be a sight to see.