Baseball Today – What’s Next, A 15 Year Contract?

 Baseball Today  No Responses »
Apr 162012
 

MLB Money

The major league average salary rose 4.1 percent to $3.44 million, the steepest hike since 2008. Revenue sharing has spread the wealth, and more teams have rich cable television contracts. Surprisingly, million-dollar salaries dropped slightly, from 453 to 448. Still, that’s nearly 53 percent of the 852 players on Opening Day rosters and disabled lists. The number of $10 million players increased from 82 to 89, and $20 million stars rose from 10 to 14. Sixty-eight players make the $480,000 minimum — boosted from $414,000 under baseball’s new labor contract. The median salary; the point at which an equal number are above and below, declined by $25,000 to $1,075,000, down from a record $1,125,000 in 2009.

The Big Contract Gamble

The San Francisco Giants and the Cincinnati Reds have joined the lunacy

Reds Joey Votto

known as baseball contracts. The Giants signed Matt Cain to a 6 year, $127.5m deal, while the Reds locked up first baseman Joey Votto with a 10 year, $225m contract. Votto is 28, and will be 39 at the end of the deal. If you add this extension to the previous contract, which was signed just last year, Votto’s 10-year, $225 million extension is actually 12 years and $251.15m. Votto also has a club-option year (2024) for another $20m.

At signing, Cain’s contract was the largest-ever for a right-handed pitcher. However, he may not be able to make that claim for too long. Cain’s teammate Tim Lincecum and the Los Angeles Dodgers’ Clayton Kershaw probably will get a big paydays within the next two years. Cain also has a $21m option for 2018, which becomes guaranteed if Cain 1) pitches 200 innings in 2017 or 400 innings in 2016-17 and 2) is not on the disabled list at the end of the 2017 season with injury to right elbow or right shoulder.

In Cain’s case I wonder if the ghost of Barry Zito crossed management’s mind. Zito’s contract was also the largest-ever (7 years/$126m) for a pitcher at signing. In the first 5 years of the contract, Zito has compiled a record of 43-61. So far the Giants have paid Zito $79m, that’s about $1.8m a win. Cain has been with the Giants for 7 years during which he has compiled a record of 69-73. He does have a decent career ERA of 3.35. Call me crazy, but $127m, possibly $148m seems like a lot of money for a pitcher with a losing record.

The New York Yankees and Boston Red Sox no longer have the advantage in the free-agent market as they had in the past. Teams like the Texas Rangers and the Los Angeles Angels of Anaheim now have the resources to compete with the two richest teams in MLB.

The Rangers were able to afford $111 million for Japanese pitching ace Yu Darvish, including the posting fee, in part because of their lucrative TV deal. It’s reported that the deal is for 20 years and $3 billion. That’s a mere $150m dollar a year just from local TV. And the Angels can afford Albert Pujols because they too have a similar local TV contract. Even the San Diego Padres, who play in the 26th largest market in baseball are, pending MLB approval, poised to sign a new deal with Fox Sports that will guarantee them $75 million a year for the next 20 years.

Who is Really Paying for These Huge Contracts?

Some in baseball think contracts like the one for Votto are the game’s version of the Internet boom in the late 1990s, that clubs are overextending themselves with cash guarantees they won’t be able to make good on. Nobody can be sure how long customers will be OK with rising cable bills, especially in a time when the Internet is already cutting into subscriptions, rising ticket prices, concession prices and the products they buy from the companies that pay the ridiculous advertising rates. Who do you pays for the millions a company spends on advertising? I’ll give you a hint, it’s not the companies.

If Cain, Votto and

  1. Pujols (signed thru 2021, 10 years/$240M (12-21)),
  2. Fielder, (signed thru 2020, 9 years/$214M (12-20) Ryan Braun (5 years/$105M (2016-20), plus 2021 mutual option is added onto an 8 years/$45M (2008-15)),
  3. Troy Tulowitzki (signed thru 2020, 7 years/$45M (08-14), 6 years/$118M (15-20) & 21 team option),
  4. Carl Crawford (signed thru 2017, 7 years/$142M), $6M signing bonus
  5. Jason Werth (signed thru 2017, 7 years/$126M (11-17)
  6. Matt Holliday 7 years/$120M (2010-16), plus 2017 option  (.314 BA, 29 HRs, 109 RBI)
  7. Yadier Molina 4 years/$15.5M (2008-11), plus 2012 club option 5 years/$75M (2013-17), plus 2018 mutual option (.274 BA, 10 HRs, 67 RBI)
  8. Troy Tulowitzki 10 years/$157.75M (2011-20), plus 2021 club option (career .293 BA, 28 HRs, 103 RBI)

all stay healthy during their super-long-term deals, you’ll see a lot more of this. I believe this trend will continue.

Yankees Alex Rodriguez

Remember, this insanity started back in December of 2000 when former Texas Rangers’ owner Tom Hicks signed Alex Rodriguez to a 10 year, $252M (2001-10) contract. Rodriguez opted out after the 2007 season and signed a 10 year, $275M (2008-17) with the Yankees. And at $30m a year, Alex Rodriguez remains baseball’s highest-paid player for the 12th straight season.

According to the Associated Press, the Miami Marlins, Detroit Tigers, Texas Rangers and Los Angeles Angels all had significant increases in payroll during the offseason. The Miami Marlins increased payroll by about $40 million. Texas’ spending went up by about $27 million, about the same as Detroit’s. Even the Tampa Bay Rays and Kansas City Royals increased payroll. On the other hand, teams that are usually the big spenders like the New York Mets, Chicago Cubs and Chicago White Sox showed decreases in spending.

There is not always a correlation between the salary and player success. There are far more examples of negative outcomes than positive ones. For example; the Angels’ Vernon Wells and Torii Hunter. They are making $21m and $18m respectfully. In 2011 Wells hit .218 and only drove in 66 runs. Hunter wasn’t much better with a batting average of .262.

Certainly Rodriguez’s contract looks worse today than when he signed it in 2007, when he was coming off career bests in on-base and slugging percentages. But his injuries increased and his production declined the last three seasons – at ages 33, 34 and 35.

The golden age of regional sports networking

Los Angeles Dodgers logo

It’s all about these local TV contracts. That’s what drove the sale price on the Dodgers. This continues baseball’s healthy growth that really has been going on for the past decade. The owners are gambling that this growth will continue for another decade. The Dodgers’ franchise value has skyrocketed because of their anticipated TV deal. These deals carry huge risks for the teams. Rodriguez, Pujols and Votto will all be past their 40th birthdays when their contracts expire. This is beyond the age when players skills begin to decline.

These huge guaranteed contracts also add pressure to small-market teams to draft and develop their own impact players, whose pay can be controlled until they reach player free agency after six years in the Major Leagues. The Tampa Bay Rays have figured this out. Look at all the quality players that have come from the Montreal Expos and the Florida (Miami) Marlins.

The Rangers, in bankruptcy just 18 months ago, will have a franchise-record payroll of about $125 million this year, thanks to their Fox Sports Southwest deal. Even after spending $51 million for the rights to negotiate with Darvish, and then giving him a six-year, $60 million deal, they still made a run at free-agent first baseman Prince Fielder. The Detroit Tigers instead landed Fielder with a nine-year, $214 million contract, well-aware their current $40-million-a year take from Fox Sports Detroit could triple with a new broadcast deal before 2018.

It doesn’t take effect until 2015, but the Rangers received $160 million cash up front and an equity stake in Fox Sports Southwest.

Yet, there’s a fear the new TV deals could create an even greater separation between large- and small-market clubs. The Yankees had an average of 318,000 households watching their games on the YES network last year, according to the Nielsen ratings, while the Kansas City Royals averaged 32,000 households.

It does have the potential to hurt competitive balance. The big TV deals are basically a function of market-size and competition. There’s no way that Kansas

MLB Salaries Since 1970

City can get a deal comparable to what the Angels did. “ The Dodgers’ local TV rights, which paid $46 million last year, expire after the 2013 season. Estimates have the Dodgers getting a TV contract that could be worth 2.5 times the value of the team. That’s $4 to $5 billion from regional sports networks.

That will pay for several $200m contracts.

 

 Posted by mickey536 at 11:48 am  Tagged with: , , ,

Baseball Today – Moneyball or Monkeyball?

 Baseball Today  No Responses »
Feb 072012
 

Maybe the recent moves Oakland A’s General Manager Billy Beane has made will be material for a sequel to Moneyball. They can call it “Monkeyball”. In recent months Beane has traded away 2009 Rookie of the Year Andrew Bailey and a very good starter in Gio Gonzalez. He let David DeJesus and Josh Willingham leave through free agency, but signs Coco Crisp to a two year $14M extension.

The A’s Kept the Wrong Outfielder

Why would you pay $7M a year to a 32 year old leadoff hitter who has no power? In 2011 Crisp batted .264, scored 69 runs, stole 49 bases and had an On-Base Percentage of .314.

Apparently, the A’s couldn’t afford to keep outfielders David DeJesus (31) and

David DeJesus

Josh Willingham (32). DeJesus (right field) signed a two year, $10M deal with the Chicago Cubs. For his career he has a .284 batting average, scored 90 runs, batted in 70 and has a .356 OBP. He had off year in 2011 after being traded from Kansas City to Oakland, hitting only .240 with a .323 OBP. However, in 2010 he hit .318 with a .384 OBP. In addition, DeJesus is an excellent fielder with a lifetime .992 fielding %. The Oakland Athletics paid DeJesus $6M in 2011 and let him go to the Chicago Cubs for $4.25M. “Monkeyball” logic.

For an extra million a year, the A’s, could have matched Minnesota’s offer and kept Josh Willingham.  Willingham signed with the Twins for three years/$21 million. Willingham’s career stats are pretty good with .262 average, 27 home runs, 88 RBI, 79 runs scored and a .361 OBP. Willingham has hit 20 or more homers in four of six years.

When Does Re-Building End?

Andrew Bailey had 75 saves and a 2.07 ERA for Oakland over the last three

Andrew Bailey

years. He was selected to the All-Star team in 2009 and 2010. Bailey only made $465,000 in 2011 and was due for a significant raise. So the A’s traded him to Boston, who signed him to a one year/$3.9M deal. Now that’s not a lot of money in today’s market.

In yet another questionable move, Billy trades quality starter, Gio Gonzalez to the Washington Nationals. The Nationals sign him to a 5 year/$42M deal. Like Bailey, Gonzalez was due a significant raise from his 2011 salary of $420,000. In the past two year Gonzalez has won 15 and 16 games with ERAs of 3.23 and 3.12.

If I’m an Oakland A’s season ticket holder, I want my money back. There is too much monkey-business for my liking.

 

 Posted by mickey536 at 8:43 am  Tagged with: , , ,

Baseball Today – Worst MLB Contracts

 Baseball Today  No Responses »
Feb 032012
 

Sad, but true

It appears that 7+ year guaranteed mega-bucks contracts are becoming the norm in Major League Baseball (MLB). In previous entries in this blog I have expressed my opposition to these multi-year guaranteed contracts. Listed below is my list of the worst MLB contracts among active players. They are divided into two categories, Free Agent Signings and Contract Extensions.

Free Agent Signings

1.  Jayson Werth

When a career .264 hitter gets a 7 year/$126M contract, I had to make it number one. Now the Nationals only paid Werth $10M in 2011 and for that they got a .232 hitter that scored 69 runs, batted in 58 with an OBP of .330. In addition, Werth has a full no-trade clause. Here is how the next 6 years payout: 2012:$13M, 13:$16M, 14:$20M, 15:$21M, 16:$21M, 17:$21M.

Another reason why this contract is so bad is the residual effect it will have on the Nationals future. Did Jayson Werth’s contract play a major role in the Nats losing out on Prince Fielder? After the Werth blunder, I can see why they didn’t want to tie themselves into another long-term contract, especially the nine years that Fielder signed for. Adding Fielder probably would have made the Nats a contender in 2012. Walk Year:

Batting Avg. .296, Runs Scored 106, Home Runs 27, RBI 85, OBP .388, SB 13

2.  Adam Dunn

If there ever was a perfect example of the merits for performance based

Adam Dunn Year Long Slump

contracts, this would be it. The White Sox gave Dunn a 4 year $56M deal. Dunn gave the Sox season from hell. He batted .159 in 496 plate appearances with just 11 homers and 42 RBIs. In addition, he struck out a team-record 177 times. He was within six plate appearances of qualifying for the lowest batting average in modern major league history. This is what Dunn will get paid over the next three years: 2012:$14M, 13:$15M, 14:$15M. Walk Year:

Batting Avg. .260, Runs Scored 85, Home Runs 38, RBI 103, OBP .356, SB 0

3. Barry Zito

At number 3 is Barry Zito who at the time it was signed was the largest-ever contract by a pitcher, 7 years/$126M (2007-13), plus 2014 club option. For the first 5 years Zito has compiled a 43-61 record and in 2011 he had an Earned Run Average of 5.87. The remaining payout is: 2012:$19M, 13:$20M, 14:$18M club option ($7M buyout). If 2014 option vests, Zito may opt out & receive $3.5M buyout. Plus, he has a full no-trade clause. Walk Year:

Wins. 16, Loses 10, ERA 3.83, WHIP ((BB + H)/IP) 1.403

4. Alfonso Soriano

My primary problem with this contract is the number of years (8). Soriano will be 38 at the end. The salary isn’t outrageous, but it is based on pre-contract performance. Over the past three years he has batted .241, .258 and .244; scored only 64, 67 and 50 runs and had an On-Base Percentage (OBP) of .303, .322 and .289. He will make $18M a year over the final 3 three of this contract. He too has a full no-trade clause. Walk Year:

Batting Avg. .277, Runs Scored 119, Home Runs 46, RBI 95, OBP .351, SB 41

5. Carl Crawford

The Red Sox gave Crawford a 7 year/$142M deal. My problem here is both length and amount. Is he a $20M guy and will he be when he is in his mid-30s?

Red Sox Outfielder Carl Crawford

In his first year of this contract, Crawford batted .255, with 18 stolen bases, 65 runs scored and a OBP of .289. The payout schedule for this contract is: 2011:$14M, 12:$19.5M, 13:$20M, 14:$20.25M, 15:$20.5M, 16:$20.75M, 17:$21M. He does have some no-trade protection: (1) Crawford may block deals to two clubs and (2) if traded, club acquiring Crawford may not subsequently trade him to NY Yankees. Walk Year:

Batting Avg. .307, Runs Scored 110, Home Runs 19, RBI 90, OBP .356, SB 47

6.   Vernon Wells

Toronto shares in the stupidity of this contract, 7 years/$126M (2008-14). In 2011 Wells was paid $23M for batting .218, scoring 60 runs, driving in 66 runs along with a .248 OBP. The payout over the last three years is: 2012:$21M, 13:$21M, 14:$21M. Walk Year:

Batting Avg. .273, Runs Scored 79, Home Runs 31, RBI 88, OBP .331, SB 6

7.   Jason Bay

The length (4 years) of this is a little more reasonable. However, paying Bay $16M for hitting .259 with 6 HRs, 47 RBI and an OBP of .347 in 2010 doesn’t seem like a good investment. He followed that last year batting .245 with 12 HRs, 57 RBI and OBP of .329. This is the remainder of the payout: 2012:$16M, 13:$16M, 14:$17M club option ($3M buyout). He also has a full no-trade clause. Walk Year:

Batting Avg. .267, Runs Scored 103, Home Runs 36, RBI 119, OBP .384, SB 13

8.  A.J. Burnett

The reason this isn’t higher is because it is for only 5 years, although it seems

Yankee Starter A.J. Burnett

like ten. The Yankees are paying Burnett $16.5M a year and have two more years remaining. For the $49.5M that they have already paid him is has produced a record of 34-35. Over the past two seasons he has had ERAs of over 5.00. He has a limited no-trade clause (Burnett may block deals to 10 clubs each year). Walk Year:

Wins. 18, Loses 10, ERA 4.07, WHIP ((BB + H)/IP) 1.342

9.  Chone Figgins

Based on a solid performance in 2009, Seattle gave Figgins a 4 year $36M. Now in today’s market this isn’t a big contract, but again it was based on past performance. In 2010 he hit .259, scored 62 runs and had a OBP of .340. He followed that with an even worst performance in 2011 where is played in 81 games, batting embarrassing .188 scoring only 24 runs and an OBP of .241. So far the Mariners have paid $17M for 86 runs. Does sound like a good investment to me. Walk Year:

Batting Avg. .298, Runs Scored 114, Home Runs 5, RBI 54, OBP .395, SB 42

10.  Albert Pujols

You might think I’m crazy for putting this contract (10 years/$240M) on the worst list. This is the reincarnation of the A-Rod contract. Maybe the outcome

Albert Pujols in Angels Uniform

will be different, but the foundation has been laid to have the same result. No one can predict the effects of age or any future serious injuries. There are milestone bonuses: $3M for 3,000 hits, $7M for 763 HRs. Pujols can also earn up to $0.875M annually in award bonuses for Gold Glove, Silver Slugger, All-Star, MVP and WS or LCS MVP. Here is where the incentives need to be expanded to include statistics like batting average, runs batted in, runs scored, on-base percentage, etc. The ten year payout is as follows: 2012:$12M, 13:$16M, 14:$23M, 15:$24M, 16:$25M, 17:$26M, 18:$27M,19:$28M, 20:$29M, 21:$30M. If you are concerned about how he will be able to pay his Medicare bill, don’t, he has a 10-year, $10M personal-services contract begins once his contract expires.  And of course he has full no-trade protection.

Career Averages

Batting Avg. .328, Runs Scored 123, Home Runs 42, RBI 126, OBP .420, SB 8

11.  Prince Fielder

9 years/$214M. Ditto to the Pujols contract. Will Fielder produce enough runs to make up for a weak pitching staff? Walk Year:

Prince Fielder Detroit Tigers

Batting Avg. .299, Runs Scored 95, Home Runs 38, RBI 120, OBP .415, SB 1

12.  Adrian Gonzalez

Who wouldn’t want Adrian Gonzalez on your team? He has a career batting average of .293 and over the past 6 years Gonzalez has averaged 31 HRs & 103 RBI a year. Again, the problem is the length (7 years/$154M). The payout schedule is: 2012-16: $21M annually, 17-18:$21.5M annually. He has a partial no-trade clause. Walk Year:

Batting Avg. .298, Runs Scored 87, Home Runs 31, RBI 101, OBP .393, SB 0

Contract Extensions

1.    Alex Rodriguez

A-Rod comes in at number one. Primarily because he has had two ten year contracts. The first one with Texas (10 years/$252M), where this mess all got started. After renegotiating with the Yankees following the 2007 season,

Apparently, A-Rod can't afford a lighter.

Rodriguez signed a 10 year $275M deal that runs through 2017. The deal also includes a $30M marketing agreement based on home run milestones ($6M each for reaching 660, 714, 755 and tying and breaking major league HR record).  The yearly breakdown of salaries is: 2008:$27M, 09:$32M, 10:$32M,  11:$31M, 12:$29M, 13:$28M, 14:$25M, 15:$21M, 16:$20M, 17:$20M.

Over the last two years he has been a .270s hitter, hasn’t scored more than 78 runs in the past 3 years, and last year only played in 99 games. The Yankees are on the hook for another 6 years and $143M. Pre-Extension Year:

Batting Avg. .314, Runs Scored 143, Home Runs 54, RBI 156, OBP .422, SB 24

2.    Joe Mauer

At signing, Mauer had the largest-ever deal (8 years/$184M) for a catcher and fourth-largest contract in history. Mauer gets $23 million a year through 2018, plus he has full no-trade protection. Mauer’s extension didn’t begin on positive note, as he was limited to only 82 games and showed no power (3 HRs) at the plate in 2011. Pre-Extension Year:

Batting Avg. .327, Runs Scored 88, Home Runs 9, RBI 75, OBP .402, SB 1

3. Ryan Howard

The Phillies signed first baseman Ryan Howard to a five-year, $125M extension.  The contract begins with the 2012 season and includes a 2017 option and a limited no-trade clause. It’s hard to argue against locking up a guy that averages 45 HRs, 136 RBI and 100 Runs Scored a year, but at $25M per year, Howard’s deal ranks third in baseball history for average annual value (see below). Pre-Extension Year:

Batting Avg. .276, Runs Scored 87, Home Runs 31, RBI 108, OBP .353, SB 1

4.  Matt Kemp

At signing, this was the largest-ever deal (8 years/$160M) for a National

Dodger Outfielder Matt Kemp

League player and tied for seventh-largest ever. However, there is no doubt that the Dodgers did the right thing by locking up Kemp. He has a .294 lifetime average and over the last four years he has averaged 28 HRs and 97 runs a year. Again, my problem is with the 8 years. Granted, Kemp is only 27, but a lot can happen in that time frame. The payout schedule is: 12:$10M, 13:$20M, 14:$21M, 15:$21M, 16-19:$21.5M annually. Pre-Extension Year:

Batting Avg. .324, Runs Scored 115, Home Runs 39, RBI 126, OBP .399, SB 40

Addendum

I was reminded the other day that I had not included the Johan Santana six-year, $137.5 million contract extension given to him by the New York Mets in my February 3rd post (Worst MLB Contracts). Four years into this deal, the Mets have gotten just 88 starts, a lost 2011 season and an uncertain future. After having elbow surgery in 2009, Santana bounced back in 2010 with a 2.98 ERA. However, his strikeout rate fell to a career-low 6.5 per nine innings and his average fastball clocked in at 89 miles per hour. In September 2010 he had rotator cuff surgery. He hasn’t pitched since, missing all of the 2011 season and may not be ready to begin 2012. Santana made $22.5 million without throwing a pitch in 2011. How many millions could the Mets have saved if this was a performance based contract? Since he has a full no-trade clause, the Mets still owe the 33 year old Santana another $49.5 million for 2012 and 2013. And the sad part is that he doesn’t have to throw a pitch to receive it.

Average Annual Value

The highest-paid players in baseball history, by average annual value:
1. Roger Clemens(*), $28,000,022 (2007)
2. Alex Rodriguez, $27,500,000 (2008-17)
3. Alex Rodriguez, $25,200,000 (2001-10)
4. Ryan Howard, $25,000,000 (2012-16)
5. CC Sabathia, $24,400,000 (2012-16)
6. Cliff Lee, $24,000,000 (2011-15)
. . . Albert Pujols, $24,000,000 (2012-21)
8. Prince Fielder, $23,777,778 (2012-20)
9. Joe Mauer, $23,000,000 (2011-18)
. . . CC Sabathia, $23,000,000 (2009-15)

(*) The Yankees paid Clemens the pro-rated portion of a $28M salary in 2007, but he only collected about $17.6M since his season started in June.

That is my list. Do you have any deals that you think should be added? Or do you disagree with any of the candidates I have chosen. If you still don’t think there is a correlation between incentive and performance, go back and look at the years each of these guys had prior to signing the huge guaranteed contracts. Then compare that with their first year under the guarantee.

 Posted by mickey536 at 10:01 am  Tagged with: , , , ,

Baseball Today – Baseball Owners: Dumb & Dumber

 Baseball Today  1 Response »
Jan 062012
 

Angels First Baseman Albert Pujols

History Repeats Itself

Apparently, the Los Angeles Angels of Anaheim didn’t learn anything from the two Alex Rodriguez contracts.  Albert Pujols’ 10 year, $254 million contract, an average of $25.4 million per year, ranks second in between the two Rodriguez contracts  (Yankees 2008 and Rangers 2001) making it the second highest contract in baseball history. Pujols will be 32 in January. I don’t think any baseball player is worth $25.4 million a year, but if owners are dumb enough to pay it and the fans are dumb to support it, so be it. Having said that; the one player today’s market who should get such a contract is Pujols. I believe the mistake is the length. His 2012 salary will be $12 million, down from the $16 million he made last year in the option year of his contract with the St. Louis Cardinals. Maybe Angels fans could all contribute $100 each to help Albert get through 2012. Pujols’ salary increases to $16 million in 2013 and $23 million in 2014, then rises $1 million annually until he makes $30 million in 2021, when he will be 41.Will Pujols or any player be worth $30 million a year at age 41?

At age 32 Pujols is the same age Rodriguez was in 2007 when he signed a 10 year $275 million contract. At the time, it seemed like a good deal, Rodriguez was coming off an incredible 2007 season. However, now at age 36 he only played in 99 games in 2011, batted .276 and drove in 62 runs. For that performance he was paid $31 million dollars! He still has six years remaining on this contract during which time, the Yankees will pay him a minimum of $143 million. Good luck Angels.

The Other Top 2011 Free Agent Signings

Jose Reyes signed with the Marlins for six years and $106 million. Reyes may

Marlins' Shortstop Jose Reyes

need some form of financial aid during the first two of his contract since he will be making only $10 million a year. Year three gets him to $16 million and the final three years are in the Pujols neighborhood at $22 million each.

Carlos Beltran – two-year, $26-million contract with the Cardinals. Beltran’s age (35) and injury history have kept interest levels to a quiet simmer so far this offseason, but he showed last season that he still has the skills to be big asset to any team.

C.J. Wilson’s 5 year $77.5 million contract starts off reasonable at $10 and $11 million the first two years. However, it balloons to $16, $18 and $20 million the last three years.

The Texas Rangers have posted the highest bid for Japanese pitcher Yu Darvish.

Yu-Darvish A Texas Ranger?

That bid was accepted by Darvish’s team in Japan. The Rangers paid $51.7 million posting fee. The Rangers still have to pay Darvish a contract, meaning the total investment likely will top $100 million. Again, baseball owners don’t learn from history. Do you think the Red Sox believe that the $103 million they spent on Daisuke Matsuzaka (Dice-K) was a good investment? He has won 49 games in 5 years. How about the Yankees who spent $46 million on Kei Igawa? He lasted 16 outings during which time he posted a 2-4 record with a 6.66 ERA. The Rangers have 30 days from December 20th to negotiate with Darvish and his representatives. If they cannot reach an agreement in that allotted time, the Hokkaido Nippon-Ham Fighters will not receive the posting fee and Darvish will pitch in Japan next season.

Who Gets the Prince?

Waiting in the wings is Prince Fielder and his agent, Scott Boras. I’m sure they were ecstatic over the contract the Angels gave to Albert Pujols. Prince is

Prince Fielder Free Agent

younger (27) and in his prime. I’ve heard Prince is seeking to exceed Mark Teixeira’s eight-year, $180 million dollar deal. Teixeira averages $22.5 million a year, ninth highest in baseball history. The last two years he has batted .256 and .248 with 122 and 110 strikeouts. However, based on the current trend, I wouldn’t be surprised if that doesn’t happen. As I write this it appear that Washington and Seattle are the front runners, but then who besides me was surprised when the Angels signed Pujols?

If you have read my previous posts you know that I am a huge proponent for performance (incentive) based contracts. Paying a player a guaranteed $10-30 million a year regardless of his contribution to the team is ridiculous and just bad business. I seriously doubt that these baseball owners got to be multi-millionaires by having guaranteed compensation plans in their other businesses. Players should receive a competitive base salary and everything else should be based on performance. I’ve seen first-hand how successful this can be. It is a win-win situation.

The problem stems from the money MLB gets from television. With the new

Fox Sports

television contract MLB gets $3 billion. I’m not positive, but I think the teams share 24% of this $3 billion. They cover their payroll before they sell a ticket or an $8 beer. If performance based contracts were implemented (by the way they never will be) two things would happen.

ESPN Baseball

One, players would perform at a higher level increasing team success and fan enjoyment, or two teams would save millions on salaries of poor performing players. In that case, owners could give back to their fans with different reward programs (i.e. ½ price tickets, free parking night, food specials, etc.).

The Free Agent Class of 2010

Lest we forget the great free agent signings of last year. Here are the top three

  1. Carl Crawford finished the year hitting a pathetic BA .255/OBP .289/SLG.405. For this he was paid a total of $20 million (14m in salary + 6m signing bonus).
  2. Jason Werth’s 2011 numbers were BA .232/OBP .330/SLG .389. For this mediocre numbers he was paid a total of $12 million (10m in salary + 2m signing bonus).
  3. The best, meaning worst, is Adam Dunn. Dunn batted .159 and struck out 177 times in 415 at-bats in 2011. Dunn actually had more trips to the plate when he DIDN’T put a ball in play (256) than trips when he did (240). He was the first player in baseball history to have 100 more strikeouts (177) than hits (66) in a season. For this pitiful performance he was paid a total of $12 million.

I’m all for anyone making as much money as possible, I just think they should earn it.

 Posted by mickey536 at 9:09 am  Tagged with: , , ,
 Older Entries
Tinkerbell Personal Checks |Garden Planters | Jewellery For Women | Best Dog Foods | Budget Wedding Gowns | Shop For Jewellery | Vintage Jewellery| Diamante Jewellery | Car Finance Credit | DoorStep Loans