Well, this wasn't a two year deal with an opt out. It was a one year deal with an opt in, which might trigger a third year. To let's do it more concretely in simplified form:And of course the downside risk was always catastrophic injury. I would also characterize any sub-meh performance as downside risk but I think we quickly get into a semantics exercise. For instance, Fangraphs had Giolito’s 20th percentile projection at 1.1 WAR which I would classify as sub-meh given his contract but others could differ on that opinion.
Fixable: say, 30 starts at 3.5 ERA for $19M. (Or whatever, just call it "a good year.")
Not Fixable (second half of last season is his baseline, and he triggers his option): 2 years of X number of starts at a 5.5 to 6 ERA for $18M/$18M.
Injured and poor recovery: 2 years of no starts for $18/$18M.
Injured and good recovery: in this case, possibly 1.5 years following Tommy John, for $18M/$18M/$14M.
In other words, if they bet on him being fixable, they're really looking at a one year deal, which they were fine with. If he's injured and the prognosis is good, they can essentially pick things up on the back end.
These are other possible outcomes, but the worst case scenario is an immediate injury, mirage recovery, and a re-injury in early 2026, which'd be 18/18/14 for nothing. Still on the table. Best case is likely a great year this year, which is probably off the table. Second best would have been the Sox get something out of him this year, but he's injured early-ish and so decides to trigger his option. He then returns in the second half of 2025 (playoff run in a year we're more likely to contend in), and the Sox pick up his option for 2026 when he's again good (again in a year we're more likely to contend in.) We still maybe have that upside scenario.