February 5, 2014

PLAYER CHANGE

Matt Holliday said that he believes that the current free agent system needs a change. The players who turn down a qualifying offer are having a hard time getting signed by new clubs because those clubs do not want to give up a first round draft pick in compensation.

Holliday recognizes that most teams now value high draft picks more than free agents. He noted that many teams use those high picks to move players quickly to the major leagues, which further downplays the need to sign an expensive free agent for those short gap years.

Holliday thinks that CBA needs to be changed so that a signing team does not lose one of its draft picks. The idea that the team that loses a player after making an offer gets a sandwich round pick is fine, but the eliminate the signing team from losing their first round pick.

The pro-player aspect of the current system is that a free agent may get an offer for the top player salaries in the league from his old club. Last season, it was around $16 million. The year before it was $13.5 million. That level of compensation is in the high end of the pay scale. The downside is that it is only a one-year deal, and at the veteran age with more injury risk, a player and his agent would want more years (even at a discount) than just a one year contract.

The other side of the argument is pure risk-reward. If a player and his agent believe that offer for one year guaranteed is too low, then they must evaluate the market to determine whether the player has great skills to get a multi-year deal elsewhere. If you are an "ace" pitcher or 35 HR batter, then the free agent doors do not slam in your face because contenders are happy to give up a prospect today for a championship this season. But if you are good veteran whose stats are on the fence due to age and/or contract demands, then the market shrinks. The yoke of a lost draft pick ends at the finish of the Acceptance Period which is before the next amateur draft or if the player signs a minor league contract with retention bonus and free agency provisions. The latter method only would come into play if the player totally misread the market and found no one truly interested in his services.

There is plenty of risk for the teams, too. A good player who hits free agency is a tough call for most teams. Do you pay him $16 million or let him walk? Or do you risk the player accepting the qualifying offer - - - which could strap your payroll budget to fill other needs? Or do you give a qualifying offer hoping the player rejects it so you can get an additional high draft pick?

The new system does make it more difficult for some free agents to quickly find a new team. It does not matter much to the premier free agents like Robinson Cano. If the players grouse enough to their union reps, I can see the CBA being tweaked in the future to allow more open free agency. But that does not mean that more teams are not going to concentrate on amateur and international prospects. That trend is clearly more detrimental to free agency than the current CBA rules.