Matt Cain's Contract Extension Worth $27.25m

The AP gives us the scoop on Matt Cain's new contract with the Giants:

Cain gets a $1 million signing bonus, $4.25 million this year, $7 million in 2011 and $15 million in 2012. He was due to make $4.25 million in 2010, the final season of a $9 million, four-year contract that included a $6.25 million team option for 2011.

The extension preserves the 2010 dollar amount from Cain's old deal, but locks him in for the two years following, with a major payday in 2012. Cain was previously set to become a free agent that offseason.

It's a deal that makes a lot of people in the bay area happy, but Andrew Baggarly raises a point of caution:

A lot can happen in a year, let alone three, but it’ll be interesting to see where the rotation stands in 2012. The Giants will have roughly $35 million committed to Cain and Zito for that season. And they’ll have Lincecum eligible for arbitration again. It’s bound to be a very, very expensive starting five.

If Lincecum continues on the way he has, those three pitchers could easily combine to cost around $55m come 2012. Considering the Giants had a payroll of $83m a year ago and $77m the year before, one wonders just how gracefully they'll be able to navigate a potential salary minefield down the road.