Report: Rangers will pay Josh Hamilton less than $7 million; deal includes opt-out after two years

The Josh Hamilton trade between the Angels and Rangers isn’t official yet, but Evan Grant of the Dallas Morning News has some details on the specifics. The upshot? The Rangers will only be responsible for less than $7 million over the next three years and their commitment could end up being less than that.

In order to satisfy the Players Association, which tries to ensure maximum value of contracts for its players, Hamilton will also be given an opt-out clause after two years, sources said. That qualifies as an “extra benefit” for the player that would allow some modification of the deal. If he were to opt out, the Rangers commitment would be reduced further to perhaps less than $5 million.

Hamilton began this season with about $80.2 million remaining on his contract. The Angels are reportedly willing to cover $68 million of his remaining salary in order to turn the page on the situation. Meanwhile, Hamilton has agreed to forfeit $6 million as part of the trade, but it basically works out as a wash due to the difference in state income tax.

This is a no-brainer deal for the Rangers, who could be getting a bargain in Hamilton if he proves to be anything close to a productive player coming back from his relapse and shoulder surgery. While his tenure with the Angels will be viewed as a disappointment, he had a 110 OPS+ from 2013-2014. He could thrive in his return to Texas. The baseball aspect aside, it should also help to be back in a supportive environment.

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