The risk really comes in the 3rd year of the contract, in which Baby can get a significant raise, as if the first year hadn't been limited by this provision.
For example, they could offer him a contract of:
First year: 5.8 million (assuming this is the max they can offer)
Second year: 6 million (assuming this is the max they can raise, making the number up)
Third year: 14 million
Fourth year: 15 million