Ian Browne, redsox.com:
Baldelli will earn a base salary of $500,000, but there are several performance incentives, many of which are built around plate appearances. For example, that salary doubles if Baldelli winds up making 350 plate appearances, which is certainly conceivable.Browne also reports that John Smoltz has signed an offer sheet from the Red Sox, "worth a base salary of $5.5 million but including incentives that could bring the total package up to $10 million". Here is a SoSH link to a story on Smoltz's surgery.
The Red Sox may also be working to bring Mark Kotsay back to the bench.
Theo Epstein says the Red Sox have not shut the door on Jason Varitek:
There's still some unfinished business. Jason is still out there. ... And also, in the pursuit of a younger catcher. ... We have the two young guys who combined to form a pretty good platoon last year at Pawtucket in George Kottaras and Dusty Brown. And we brought in Josh Bard on a one-year deal ...Tom Tippett (of Diamond Mind Baseball fame) has been hired by the Red Sox as a director of baseball information services.
[Accepting arbitration is] always the player's decision. ... Certainly it was something we were hoping he would have accepted and then he would have been back under those terms. It's behind us now and we'll see what happens next.