In a surprising twist of events, a source tells John Shea of the San Francisco Chronicle that the Giants have offered ace Tim Lincecum a three-year, $37 million contract. The deal would pay the pitcher $9.5 million, $12.5 million and $15 million over the next three years, although Shea reports that Lincecum’s camp countered with a proposal for over $40 million.

If not, Friday’s hearing in Florida would decide whether Lincecum’s 2010 salary is $13 million (the figure he submitted) or $8 million (the figure submitted by the Giants).

The record for a player eligible for arbitration for the first time is $10 million (Phillies first baseman Ryan Howard), $4.35 million for a starting pitcher (Dontrelle Willis, Cole Hamels). It’s believed Lincecum’s agent, Rich Thurman, negotiating for a multiyear deal, has asked for a first-year salary close to the $13 million figure he submitted.

It was just yesterday that I hammered the Giants for creating a lose-lose situation by only offering Lincecum $8 million in arbitration and then following through with the hearing by setting it up for this Friday. I maintained they were running a risk of not only losing in arbitration, but also upsetting Lincecum (their franchise player) in the process by low-balling him with their $8 million offer.

But this changes everything. Now the Giants are showing their commitment to Lincecum by offering a fair deal that works for both sides. And if they’re only a few million apart, then hopefully they get something worked out by tomorrow and avoid a potentially messy arbitration hearing.

The Giants went from a lose-lose situation into a potentially positive one, although let’s see if they can close the deal before tomorrow.

Photo from fOTOGLIF

Far be it for me to question what the inner workings of a professional baseball organization is doing, but what in God’s name are the San Francisco Giants thinking?

In mid-January, Tim Lincecum field for $13 million in arbitration, while the Giants submitted an $8 million figure. Many viewed the situation as the Giants low-balling their ace pitcher, but I figured that the $8 million would be used as a starting point for the club and Lincecum to reach a deal outside of the courtroom. I even told my cohort here at The Scores Report, John Paulsen, that they would likely avoid arbitration altogether and meet somewhere in the middle.

But upon waking this morning I read: Giants, Lincecum set arbitration hearing for Friday.

Nice prediction, Stalter.

Unless I’m missing the big picture here, the Giants have done a fantastic job of setting themselves up in a lose-lose situation. By submitting $8 million and then actually following through with the hearing, they risk not only pissing off Lincecum but also losing $13 million in arbitration. After all, what are they going to use against Lincecum – his RBI totals?

Fortunately for the Giants, Lincecum is being a total professional about the situation. He’s on record saying that he understands the business part of baseball and that it’s nothing personal. He also understands that the Giants could use his October 30 pot charge against him during the hearing, although that’s about the only thing the club has against the two-time Cy Young winner.

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