A player can hedge his bets by singing for what seems like a reasonable sum of money for a long period of time. If he gets injured or his abilities decline, the team does not have an out and the player is the big winner. If the player develops beyond predictions or the market takes an unforseen turn for the better, the team has the player locked up and is the big winner. The system can only work if both sides adhere to the conditions of the contract, regardless of the outcome. If your home doesn't catch fire next year you won't be able to demand that your fire insurance premiums be refunded.
Insurance is intangible, but has an intrinsic value unto itself.
This is the overlooked component of Vizquel's contract. In light of the context of the day that he signed the contract, Vizquel has a great deal. I'm not opposed to high player salaries. I'd rather see J.D. Drew test his value in a free marketplace than see his value artificially deflated by the indentured servitude of the amateur draft. But there is something truly ugly about public whining by a player, especially when it involves a contract peppered with his John Hancock and chaw residue.