McAdam: Sources - Red Sox don't have insurance on Dustin Pedroia's contract

FORT MYERS, Fla. -- The Red Sox are hopeful Dustin Pedroia, having undergone multiple knee surgeries in the last three years, can return and be a productive player again in 2019.

But if he can't regain his status as a regular player, or worse, injures the knee again and can no longer play, the Red Sox will get no relief from the $40 million the infielder has due to him over the next three years.

Multiple industry sources say the Red Sox chose not to insure his contract when it was signed in July 2013.

Pedroia is due $15 million in 2019, $13 million in 2020 and $12 million in 2021 as part of his eight-year, $110-million contract. An undisclosed amount of the money due him is deferred.

Pedroia underwent surgery for a torn meniscus after the 2016 season, then had microfracture surgery in November of 2018 to restore cartilage to the knee joint. He returned in May of 2018 but after appearing in just three games, didn't play again. He underwent a third procedure last August -- an arthroscopic surgery to clean out scar tissue.

In the early days of the John Henry ownership era, the Sox often insured big contracts for veteran players. The team insured Mike Lowell's deal more than a decade ago, and more recently, had partial insurance on Hanley Ramirez's contract.

But of late, according to a source, the team has moved away from that practice, citing the at times prohibitive costs associated with insurance. Such policies, several sources suggested, can cost $2-$3 million per year to purchase and the conditions under which a team can collect fully are often very specific.

Obtaining insurance can be problematic with older pitchers who are more susceptible to injury. In general, several sources said, it's as difficult to insure contracts for position players, though the Sox elected not to do so with Pedroia.

As a practice, the Red Sox (and other MLB teams) have often written clauses into big contracts that offer them some degree of protection. When J.D. Martinez signed his five-year, $110-million deal last February, the agreement was held up as the Red Sox and agent Scott Boras negotiated clauses under which the Red Sox would get some relief if Martinez missed significant time due to injuries related to preexisting problems.

The Sox also wrote in some protection on a deal with John Lackey on a five-year, $82.5-million deal with the Red Sox in December of 2009 which provided them with an additional year from Lackey for the major league minimum should he lose a year due to an elbow injury.

Across baseball, teams have different viewpoints on insuring contracts. The New York Mets were also to recoup some of their lost money when David Wright retired last September due to chronic back issues, while others have followed the Red Sox approach of eschewing insurance.