The Washington Nationals and Stephen Strasburg have agreed on a one-year deal worth $3.975 million, avoiding arbitration. Strasburg made $3.9 million last season so this is a slight upgrade in annual value.
To go along with the $3.975 million, Strasburg is able to receive incentives. These could include, innings pitched, wins, starts. If he reaches one of those plateaus he will get money added to his contract.
Strasburg will become a free-agent in 2016, and I believe that this is a smart move to keep him at a one year deal at this time. If he proves that he can make at least 28 starts again this season, with an ERA around 3.00 then you evaluate an extension that would buy out the rest of his arbitration, along with a couple more years added on to the end.
He has faced injuries multiple times in his short MLB career, and it will be key for him to stay healthy if the Nationals want to win. That is the biggest issue with Strasburg. You shouldn’t be worried about his production, it is him being on the field every fifth day that you should be worried about.