ESPN is reporting that the New York Yankees and Derek Jeter have agreed to a new contract extension that will pay the 36-year old infielder a guaranteed $51 million over the next three years.

To say this is interesting is an understatement. The Yankees are no stranger to the concept of paying players past their prime too much money. What makes this news different is that this particular player is already part of their organization. It’s one thing to pay too much money for a player from another team. It’s quite another to pay too much for one of your own players. If there is anyone that should know that the Derek Jeter of 2010 is not the Derek Jeter of old, it’s the Yankees.

Not only is Jeter old, his skills have dropped dramatically. His OPS last season was .710, 120 points below his career average. Speaking of average, his batting average was a very pedestrian .270.

Though I figured the Yankees would eventually resign Jeter to an extension, I never thought it would be so massive. I’m not sure who other than the Yankees were interested in signing Jeter.