The White Sox announced the terms of John Danks' five-year, 65 million contract extension on Thursday. Here's how it breaks down:
2012: 8 million
2013-2016: 14.25 million
That 8 million salary next season will be a nice bargain. Danks was worth 14.2 million (per FanGraphs) in value last season as a three-win pitcher, and with inflation another three-WAR (Wins Above Replacement) season will provide another nice cushion of surplus value.
Paying Danks 57 million over the following four years should, at the worst, be market value if he averages around three wins a season. With inflation, it'll be somewhat of a favorable deal for the White Sox, probably around the same level that Mark Buehrle's four-year, 56 million deal provided about 10 million in surplus value.
Three WAR per season may be conservative, too. Danks has already had four and five-WAR seasons, and he'll be entering his prime, so there's a good chance he'll have a year or two during the length of the deal in which he's a 4-5 WAR player.
One season at that level would be enough to make the deal quite favorable to the Sox, or at the least potentially offset a down year (either performance-wise or injury-related).
To sum it up, it's a good deal for the White Sox. It's also a good deal for Danks -- I mean, he's getting 65 million guaranteed. There isn't an option year involved. And he'll hit free agency before his age 32 season, which still could yield a nice three or four-year deal on the market.