The starting pitcher's original contract was a three-year, $25 million deal, paid out with $5 million in 2013, $11 million in 2014, and $9 million in 2015.
Under the new arrangement, Guthrie will earn $8 million in 2014, $9 million in 2015, and has a mutual option worth $10 million for the 2016 season that includes a $3.2 million buyout.
Basically, the money has been redistributed. Guthrie is guaranteed approximately the same amount, and since mutual options are rarely agreed to by both sides, the length of the deal will likely stay the same as well. In other words, Guthrie will make $3 million less in 2014, but he'll see at least that that amount in the form of a buyout prior to the 2016 season.
Guthrie, 34, has started 47 games for the Royals since being traded by the Rockies for Jonathan Sanchez in 2012. He's posted a 3.78 ERA in 302⅔ innings for Kansas City in that stretch.
He has effectively given his team about $3 million they wouldn't have had otherwise, and for the Royals, who are perpetually up against their budget, that's a positive.. They could look to use that extra boost to navigate next month's arbitration hearings, if nothing else.