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Restructuring contracts is very tricky, because the Players Union is not very likely to allow a player to receive less than he signed for. However, this sort of restructuring is not entirely taboo. In fact, one instance of such a move occurred in 2006 with Tom Glavine and the New York Mets. Glavine had signed a 4-yr/$42.5 mil deal to pitch in New York from 2003-2006. He was set to earn $10.5 mil in 2006, but restructured the deal to pay him $7.5 mil. Added onto the contract were options, both club and player, for the 2007 season.

Initially, Glavine’s $10.5 mil included half of the money deferred at 6% interest. Upon restructuring the deal to $7.5 mil, the deferred total fell to $2.5 mil, meaning that, no matter what, he would earn $5.25 mil and then the rest of that year’s salary deferred at 6% interest. The player option for 2007 would earn him $5.5 mil with an increase of $1 mil each for logging 180, 190, and 200 innings. The club option was worth $12 mil. In either case, if his salary fell below $14 mil, he could earn that amount through bonuses and incentives.

In essence, Glavine restructured his deal to pay him a lower fee in 2006, yet guarantee himself security for the 2007 season.