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Sean McAdam of the Boston Herald has the details of the 4-year, $40M+ deal Youk agreed to yesterday:

The deal will be worth at least $41.25 million, with a $1 million signing bonus and salaries of $6 million in 2009, $9 million in 2010 and $12 million each in 2011 and 2012.

The Sox also hold an option for 2013, thought to be worth $14 million, with a buyout of $1.25 million.

Red Sox Nation seems to agree that this is a steal. Other bloggers chime in here, here, here, here, here and here.

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So the Red Sox avoid arbitration with Youkilis, but Jonathan Papelbon and Javy Lopez filed for arbitration this week. Paps made $775,000 in 2008 while posting a 2.34 ERA and a career best 41 saves. K-Rod signed a 3-year, $37M deal with the Mets after saving 62 games in 2008... it will be interesting to see what the market bears for Papelbon. Paps in the AL's best closer and just turned 29 in November... he's due a hansome raise, but it won't be 3/37. And that could be a problem. Paps agreed to a 1-year deal worth much less that he thought he was worth last season. If the Red Sox try to low ball him again, I wouldn't put it past him to keep settling for 1-year deals until he can test the free agent market.

Bottom Line: Signing Pedroia nd Youkilis are sart moves that prove the Red Sox are focused on the big picture. Locking up the premire closer in the league couldn't be a smarter move, but the two parties will have to agree on a number... my guess is 3 years, $18 million. 

UPDATE: Eric Wibur of The Boston Sports Blog also wonders how the Red Sox will convince fan favorite and homegrown hero Papelbon to take the "home town discount" like Youk and Pedey, when they were willing to offer $180 million to Teixeira the Mercenary... here's one of the better tid bits from the article:

On the grand, wacky scale of baseball salaries, you'd have to consider the following bargains: Youkilis, Pedroia, Josh Beckett ($10.5 million in '09), Jason Bay ($7.5 million), Tim Wakefield ($4 million), David Ortiz ($12.5 million), Jonathan Papelbon ($775,000 in '08, headed to arbitration).

Or how about putting it this way: In 2009, the Red Sox infield of Mike Lowell, Julio Lugo (maybe), Pedroia, and Youkilis will make a total of $28.5 million. Alex Rodriguez alone will pull in $32 million.

Want to add Ortiz, Bay, and Drew to the mix? Fine. That trio, in addition to the aforementioned group will cost the team $62.5 million. Or just a shade over what the Yankees have invested in the Rodriguez and Teixeira deals this season.

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Yesterday, the Red Sox announced that the Mark Kotsay sigining is official. Kotsay will make $1.5M, but he can earn an extra $200K if he gets 300 at-bats and an additional $200K for every 50 plate appearances after that up to 500.

RP David Aardsma was designated for assignment to make room on the roster for Kotsay. The Red Sox bullpen is loaded with Papelbon, Okajima, Delcarmen, Ramirez and Saito. Wes Littleton and Daniel Bard could also contribute and Justin Masterson could start or stay in the pen.

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Also, Gregg Zaun has agreed to a 1-year, $1.5M deal with the Baltimore Orioles that includes a $2M team option for 2010. Zaun had been talked about as an option here in Boston, so this deal could have some ramifications on the Jason Varitek negotiations....

And Michael Young has agreed to play thrid base for the Texas Rangers and retracted his request to be traded.