Correia’s deal includes a $2 M signing bonus, plus base salaries of $3 M a year in 2011 and 2012. He can also earn up to $1 M in performance bonuses. If Correia is traded, his new team can’t offer him arbitration. Correia was a Type B free agent this off-season, and by signing with the Pirates he netted the San Diego Padres a first round compensation pick in the 2011 draft (the Pirates don’t have to pay any compensation, as the pick is awarded by Major League Baseball).
It’s likely that Correia’s bonus will be applied to the 2011 payroll. By my estimates, his addition, plus the addition of Scott Olsen, will bring the payroll up to just over $35 M (after figuring in expected arbitration raises).