The Boston Red Sox have reportedly agreed to terms with free agent third baseman Alex Bregman on a three-year, $120MM contract. The deal, which is pending an official announcement, includes a massive $40MM annual salary, with an unreported amount deferred.

The Deal

Bregman, 31, had been one of the top remaining free agents on the market, and his signing marks a significant coup for the Red Sox. The two-time All-Star had reportedly received a six-year, $156MM offer from the Houston Astros, as well as a six-year, $171.5MM proposal from the Detroit Tigers.

Roster Implications

Despite some concerns about adding another long-term infield commitment alongside Rafael Devers and Trevor Story, the Red Sox were willing to pay handsomely in the short term to secure Bregman’s services. The deal includes an opt-out clause after each of the first two seasons. Bregman is expected to play second base for the Red Sox, with top prospect Kristian Campbell likely to begin the season in Triple-A Worcester.

Luxury Tax Implications

The deal has significant implications for the Red Sox payroll, which now approaches $250MM in luxury tax commitments. However, the team is only expected to pay a 20% tax on spending between $241MM and $261MM.

Bregman’s Departure from Houston

Bregman’s departure from the Astros marks the end of an illustrious tenure in Houston, where he won two World Series titles and established himself as one of the top players in the game. He will reunite with Red Sox manager Alex Cora, who was the Astros’ bench coach in 2017.

Offseason Recap

The signing is the culmination of an exciting offseason for the Red Sox, who have also added pitching depth and bolstered their bullpen. With Bregman on board, the team is well-positioned to compete in the highly competitive AL East.