On December 29, 2006, Barry Zito put his name on one of the most talked-about contracts in baseball history. The San Francisco Giants locked him up for 7 years and $126 million — the largest deal ever handed to a pitcher at that point. Zito was coming off a brilliant run in Oakland, where he had won the 2002 American League Cy Young Award, and the Giants were betting big on him anchoring their rotation for the better part of a decade.
Contract Breakdown
- Team: San Francisco Giants
- Signed: December 29, 2006
- Length: 7 years
- Seasons covered: 2007–2013
- Total guaranteed value: $126 million
- Average annual value: $18 million
How the Deal Was Structured
The contract ran from 2007 through 2013 at an average of $18 million per season. Every dollar was fully guaranteed — no performance clauses, no conditions that could reduce the payout. Zito collected the full amount regardless of results, injuries, or roster decisions.
The deal also included an $18 million club option for 2014, which San Francisco declined on November 2, 2013, officially closing the book on the partnership a year earlier than it could have gone.
The Fine Print: Deferred Money
Buried in the details was a deferred-money clause: $7 million would be paid out in installments between 2014 and 2020 at 1% annual interest. It was a common mechanism that allowed the Giants to spread part of the financial weight beyond the contract’s active years — but Zito still received every cent owed to him.
Where This Contract Stands in MLB History
Zito’s deal doesn’t crack the all-time top ranks of the largest contracts in MLB history — the market has moved well past $126 million since then. But it remains a landmark reference point in any conversation about high-priced pitching. It was the record for pitchers the day it was signed, and that context still matters.
The Career That Led Here
By the time Zito arrived in San Francisco, he was an established star. His Oakland years had placed him among the best arms in the American League, with the 2002 Cy Young as his signature achievement. The Giants saw a front-of-the-rotation ace who could anchor a championship push.
The results in San Francisco were complicated. Over seven seasons and 208 appearances, Zito went 63–80 with a 4.62 ERA. He was left off the postseason roster during the Giants’ 2010 championship run. But in 2012, he delivered one of the most memorable moments of his career — winning Game 1 of the World Series as San Francisco claimed the title.
Why People Still Talk About This Contract
The Zito deal is a fixture in baseball’s financial history for a simple reason: it was the biggest pitcher contract ever signed when it happened. A 63–80 record and a 4.62 ERA over seven years didn’t match the price tag, and that gap between expectation and performance made it one of the most scrutinized deals of its era. Still, the Giants won a World Series ring with Zito on the roster — and he cashed every guaranteed dollar.
