November 18, 2014

CHEAPER BY THE PEN

If you are in the camp that the Ricketts ownership is trending towards being "cheap" or "cost effective" in running a major league franchise, then Paul Sullivan's recent column should add wood to your hot stove position.

Sullivan extracts from the last World Series a new vision for how a team can be a contender without an All-Star starting rotation: have a "shut down" bullpen.

Sullivan wrote that the Giants won the World Series this year with a rotation that ranked 16th in the majors, while the runner up Royals team's rotation finished 11th overall.

Sullivan asks this miserly question: So why spend over $100 million on a free-agent starter when an average rotation combined with a few shutdown relievers in the seventh, eighth and ninth seemingly works just as well?
That is the type of "out of the box" thinking that an owner with cash flow problems and large looming construction bills would pounce on.

With relievers David Robertson, Andrew Miller and Sergio Romo are among the free agent relievers in demand this winter, the all project far less in contract costs than a Jon Lester or a Max Scherzer.

Cubs president Theo Epstein believes the Cub already have a strong bullpen with Justin Grimm, Neil Ramirez and closer Hector Rondon in the late innings, making that area less of a priority this off-season.

“One thing I always worry about is looking at the postseason and trying to draw broader conclusions about those teams,” Epstein said. “In the postseason, a lock down bullpen becomes more important because with the off days those guys are available to pitch every day and pitch more than they would during the regular season. And it’s a lower run-scoring environment in the postseason.

“So certain things become more important. But also, if you want to have a good back end of the bullpen, getting a lot of innings out of starting pitching takes the burden off those relievers, and means your best relievers are available to pitch more often and stay healthy.

“I think this was a postseason where maybe the bullpens took center stage more than the starting pitchers, but if you look at what (Madison) Bumgarner did, it also emphasizes just how impactful a true No. 1 on a roll can be in October.

“I just think next year, a (World Series) team may not generate much offense except hit a bunch of home runs, and everyone will say, ‘The long ball is king these days because no one has power.’ You have to be a little careful.”

But the Cubs may not have to go outside the organization to bolster the bullpen. RHP Armando Rivero, who posted a combined 2.22 earned-run average and 1.09 WHIP at Double-A Tennessee and Triple-A Iowa, should be one of the first call-ups if he continues to pitch well.

November 17, 2014

BIG DEAL GRADES

The International Business Times recently graded the top free agent contracts in the last 10 years.

  1. Alex Rodriguez, 32, 3B, New York Yankees, 10 years $275 million: Among the worst contracts ever, considering there is three years left and Rodriguez has totaled just 41 home runs since 2011. Verdict: Bad deal.
  2. Albert Pujols, 31, 1B, Los Angeles Angels of Anaheim, 10 years $250 million: He hasn’t made an All-Star appearance since leaving St. Louis despite posting good numbers, though well below what he previously achieved. Verdict: Bad deal.
  3. Robinson Cano, 31, 2B, Seattle Mariners, 10 years $240 million: Replicated his BA and on-base percentage, OBP, from the previous year, though his slugging percentage dipped from .516 to .454. Verdict: Undecided.
  4. Prince Fielder, 26, 1B, Detroit Tigers, nine years $214 million: Failed to hit more than 30 home runs in a season after doing so for five straight years and played just 42 games in 2014. Verdict: Bad deal.
  5. Mark Teixeira, 28, 1B, New York Yankees, eight years $180 million: Hit at least 33 home runs with 108 RBI in each of his first three years, but hit .229, averaging 16 home runs and 53 RBI over the next three years. Verdict: Bad deal.
  6. CC Sabathia, 28, P, New York Yankees, seven years $161 million: The team’s ace for four seasons, but he’s been a disaster since opting out and signing an extension, pitching just eight games in 2014. Verdict: Bad deal.
  7. Masahiro Tanaka, 25, P, New York Yankees, seven years $155 million: A Cy Young candidate through two months, an injury limited him to 20 starts and could force him to have Tommy John surgery. Verdict: Undecided.
  8. Jacoby Ellsbury, 30, OF, New York Yankees, seven years $153 million: Led the Yankees in steals and remained healthy for most of the season, but hit well below his career OBP at .328. Verdict: Undecided.
  9. Zack Greinke, 29, P, Los Angeles Dodgers, six years $147 million: Registered two of his three lowest ERA’s with the Dodgers, winning 32 games in two seasons. Verdict: Good deal.
  10. Carl Crawford, 28, OF, Boston Red Sox, seven years $142 million: Boston traded Crawford after a year and a half, and he hasn’t played more than 116 games in any of the past three seasons. Verdict: Bad deal.
  11. Alfonso Soriano, 30, OF, Chicago Cubs, eight years $136 million: OPS never reached .900 in the entire contract. Stolen bases declined as soon as he joined Chicago. Verdict: Bad deal.
  12. Shin-Soo Choo, 31, OF, Texas Rangers, seven years $130 million: Missed 39 games and hit just .242 with a .374 slugging percentage. Verdict: Bad deal.
  13. Barry Zito, 28, P, San Francisco Giants, seven years $126 million: Went from one of the best pitchers in baseball to a back-of-the-order starter. Finished with an awful 63-80 record and a 4.62 ERA. Verdict: Bad deal.
  14. Jayson Werth, 30, OF, Washington Nationals, seven years $126 million: Has a .303 average over the past three years, but he hit .232 in year No. 1 and missed half of the 2012 season. Verdict Bad deal.
  15. Josh Hamilton, 30, OF, Los Angeles Angels of Anaheim, five years $123 million: Saw his home run total cut in half to 21 in year No. 1, and only played in 89 games in year No. 2. Verdict: Bad deal.
  16. Cliff Lee, 31, P, Philadelphia Phillies, five years $120 million: Started just 13 games in 2014, but was an All-Star in 2011 and 2013.Verdict: Good deal.
  17. Matt Holliday, 29, OF, St. Louis Cardinals, seven years $120 million: Consistently good on winning teams, Holliday has three All-Star appearances since signing this contract. Verdict: Good deal.
  18. Carlos Beltran, 27, OF, New York Mets, seven years $119 million: Injuries hampered Beltran for stretches, but in 3,300 at-bats, he batted .282 with 202 homers -- good numbers but not worth the contract. Verdict: Bad deal.
  19. Jose Reyes, 27, SS, Miami Marlins, six years $106 million: Hasn’t hit .300 since winning the batting title, averaging 28 steals, 79 runs and 132 games per season. Verdict: Bad deal.
  20. Carlos Lee, 30, OF, Houston Astros, six years $100 million: First half of the contract went fine with a batting average well over .300 and 86 total homers, but it was poor numbers from there on out. Verdict: Bad deal.
The results of the Top 20:

Bad Deal: 14
Undecided: 3
Good Deal: 3

A whopping 70 percent of the major free agent signings turn out to be bad deals.

November 14, 2014

STANTON AND DELIVER

Giancarlo Stanton could be argued as the best major league baseball player in the NL (Clayton Kershaw fans excepted). Stanton, 25, has amassed a 21.2 career WAR in just 5 seasons, an average of 4.24 WAR/season. In his first year of arbitration, he was awarded $6.5 million. He has two arb years left before FA in 2017.

He is expected to break the bank either way. Several reports state that the Marlins are hot to get Stanton signed for a long, long term deal. ESPN reports it could be a 12 year $300 million deal, while CBS Sports thinks the number could be 13 years $320 million. This is record shattering territory.

Stanton commands these high numbers because of his consistent performance. Season WAR totals: 2.8, 4.1, 5.5, 2.3, and 6.5.  His career average for a 162 game season: 39 HR, 102 RBI, .271 BA.

If one uses $5 million/WAR valuation, then Stanton being paid $6.5 million in 2014 was a steal. His performance value would have been $32.5 million. Even if Stanton's arbitration award doubles, he is still only getting paid half his value.

So it may be in the best interests of the player (and his agent) to tap the current controlled value into a long term deal. Teams only do long term deals if it is advantageous to it. The Marlins are a terrible dysfunctional organization with a cheap and arrogant owner. The team burned Miami taxpayers on a new stadium deal; had a fire sale of their veteran talent; and even fired Ozzie Guillen early in his contract term (some of that was Ozzie being Ozzie). Stanton is the one and only shining grace for the franchise.

If one uses the qualifying offer amount of $15.3 million as the floor to negotiations for a top player like Stanton, even a short term extension through his arbitration plus one year of FA would cost the Marlins $46 million. It would be a pay increase for the player, but still very undervalued even at average career WAR ($63.6 million). So the team has to pay a premium to keep Stanton for any free agent year. And it seems to top tier number is Kershaw's $25 million per season number.

Stanton could sign a three year extension for $75 million and hit the free agent market at age 28 for an A-Rod shattering next deal. It comes down to reward of a higher pay day against the risk of premature injury prior to free agency.

In 2012, the Marlins had the 7th highest payroll at $118 million. Then the fire sale, and dropped to the bottom at $36 million in 2013 and $46 million in 2014. Even under the short extension play above, the Marlins would be paying Stanton more than 50% of their payroll on one player. Throughout sports leagues, putting so much capital in one player is dangerous and at times, counterproductive (look at the Bulls and injured Derek Rose who eats of 36% of the team's cap space).

But keeping Stanton may be the Marlins only way to save the franchise from total ruin.

I would expect that any long term deal would be stair-stepped in value (putting more on the back end) hoping that the Marlins could catch fire and be playoff competitive (which equates to more gross revenue). A 10 year extension could be (in millions): $15, 20, 25, 25, 30, 30, 35, 35, 40, 40. That makes the deal worth $295 million. Stanton would become a rich free agent at age 35, and depending on his condition, he could get a Victor Martinez final deal of 4 year/$68 million. 

In any event, there will be no charitable tag days ahead for Stanton.

But based upon his statistical value, Stanton has a limited market in trade or in free agency. Very few teams are willing to spend $200 million on one player. Teams would rather keep their top prospects than trade them for expensive veterans. Even the Dodgers and Angels have overspent in the last few seasons, and they now have payroll digestive problems.

A player is worth what the market will bear. Stanton is going to stretch that market to its outer limits.

JETER REPLACEMENT

The quest for Derek Jeter's replacement has begun. The NY Post speculates on a prime target of the Yankee search:

One shortstop who at least has the Yankees intrigued as they rev up their efforts to find Derek Jeter’s successor is Texas’ Elvis Andrus.

The Yankees would have to feel Andrus is a buy-low candidate whose downturn on both sides of the ball in 2014 was reversible and that, at 26, his best years are ahead of him.

Andrus’ eight-year, $120 million extension does not even begin until next season and runs through at least 2022. Texas would love to unload that deal as it searches this market for starting pitching. The Rangers can go inexpensive in the middle infield with some combination of Rougned Odor, Jurickson Profar and Luis Sardinas. However, they would be more comfortable doing that if they knew for sure Profar was going to be healthy moving forward after missing all of 2014 after tearing (then re-tearing) a muscle in his shoulder.

Andrus has played at least 145 games in each of his six Rangers seasons. However, he has yet to translate the promise he showed in helping Texas win the AL pennant in 2010 and 2011 into becoming a star-level player.

He was said to show up overweight last year and that negatively impacted his season. Andrus hit .263 with a .647 OPS in 2014 and, while he stole 27 bases, his 15 caught stealings led the AL. He was 42 out of 50 in 2013.

Starlin Castro is a better bargain for the Yankees. He is signed through 2019 for only $44 million (with a $16 million team option in 2020). Castro has a 9.4 career WAR (2.0 WAR in 2015). I have speculated for more than a year that Castro to the Yankees would make sense. The problem is the Yankees don't have much major league ready prospects that the Cubs could want (with the exception of AA catcher Gary Sanchez, #2 ranked prospect). But Yankee cash can smooth out any transaction.

A story like this one in the Post will start to kick the tires on other clubs to start discussing potential deals with the Yankees. And other teams looking for a shortstop will start to contact the Cubs, who have four major league ready middle infielders (Castro, Baez, Alcantara and Russell) ready for action. I expect one of these four to be traded in 2015, most likely for starting pitching.

November 12, 2014

SHOOTING FROM THE HIP

A report surfaced Tuesday night that the Cubs and Nationals were engaged in trade discussions about starting pitcher Jordan Zimmermann.

Paul Sullivan of the Tribune rebukes the story, stating a Cub source said there has been no discussions of a Zimmerman trade. "He is not available," according to the source.

At the moment Zimmerman would be a one-year rental. Zimmermann is owed $16.5 million in 2015 before becoming a free agent.

However, based on recent free-agent starting pitcher contracts, Zimmermann will be in line for more than $100 million. The guess here is that Zimmermann eventually signs for more than what Homer Bailey got (six years, $105 million) but less than what the Phillies gave Cliff Lee (five years, $120 million).

Something in the five-year, $115 million range seems appropriate for Zimmermann, who has a 2.96 ERA over the last three seasons in 96 starts

From the Cubs, the Phillies are likely seeking Kris Bryant and more in a Hamels trade. The Cubs appear unwilling to trade Bryant, their top prospect who hit .325 with 43 homers at Double A and Triple A this past season, his first full one in pro ball. That's just how negotiations begin.

Because Zimmermann is a rental, he would cost the Cubs less in the way of prospects. Chicago may be looking at parting with shortstop Starlin Castro in a proposed Zimmermann deal, or one of their lesser-but-still-intriguing prospects in utilityman Arismendy Alcantara or outfielder Albert Almora.

Other teams will be kicking the Cub tires for hot prospects like Bryant, Javy Baez and Addison Reed, because the Cubs have a surplus of infielders. The Cubs put a waiver claim on Cole Hamels last season, so that may indicate the team is willing to take on a $100 million pitching contract. The Phillies are having a fire sale now, and Hamels is still available in trade.

Zimmerman would cost less in trade than Hamels. Zimmerman's contract status versus Hamels' guarantees. The Cubs could flip Zimmerman at the deadline to restock their prospect list.

The problem with a megadeal at this time is that the Cubs really don't know what they really have with their prospects. Bryant could be the next Mike Schmidt or the next Mike Olt. In one respect, the highest value may be now, before any actual major league swings and misses. In another respect, if Bryant is the real deal, a starting All-Star position player is more valuable than a starting pitcher.

The Nationals would need an impact player in return since they are in championship mode. Alcantara does not make sense since the infield is set and Span in CF. Almora is still several years off. To trade Zimmerman, the Nats would need a major league ready pitcher in return (for at least depth) and the Cubs don't have anyone, unless you think Kyle Hendricks. Hendricks has too many years of cost control to give up in a pitcher rental deal.

It is a long shot that the Cubs make a Zimmerman deal with the Nationals. 

What is picking up early is a market for shortstops. The Mets, Yankees, Dodgers and Mariners are actively seeking a shortstop. The Cubs have three on the roster available for the right deal.

TEAMS IN PLAY

This off-season, there have been a few clear signals from teams on the verge of being highly competitive.

The Angels and Phillies have strongly indicated that they will be sitting out this free agent market. They do not want to add to existing high payrolls. In fact, they would like to shed some high cost talent. The Phillies are willing to trade anyone on their roster, including Cole Hammels, for the right deal (at least three top prospects). The Dodgers also seem to want to pare back their excess outfield talent under new team President Friedman.

The Mariners, Red Sox, Yankees and Rangers appear poised to make a run at bolstering their teams. The Rangers have a protected top draft pick so they could have their cake and it eat it to by signing a top free agent (who refused a qualifying offer). Likewise, the Tigers will get at least one supplemental first round pick for losing a quality free agent to another team (Max Scherzer). The Yankees have been playing possum this off-season, which means that they will make a run at the top guys. The Red Sox always seem to be circling for an acquisition.

The national media is convinced the Cubs will make a splash, but I don't think so. The Cubs are still filling the kiddy pool with water.

The Mariners have been spending money in recent years, but have not come to critical mass. The rumor is that the team will go after Hanley Ramirez and Victor Martinez, two older players, which means that 2015 projects to an "all in" season for Seattle. Detroit is in a similar position: so close, yet so far away from that desperate championship. If the Tigers lose Martinez and Scherzer, then they will have to replace a DH and SP of like quality (David Price may be part of that answer).

If one looks for a dark horse team to fly under the radar and pick up a "name" this off-season, it could be the Cardinals. With SP Kyle Lohse being paid only $500,000 at the end of a front loaded contract, the Redbirds actually have his "real value" plus another SP budget slot to pay a top tier FA $20 million plus.


November 11, 2014

MONEY

Gordon Wittenmyer of the Sun Times believes the Cubs have $70 million in payroll flexibility while the White Sox have only $40 million.

He believes the teams are at a crossroads - - - the ability to spend money on free agents in order to turn around their franchises in 2015.  But he admits that both general managers are downplaying the spending expectations.

We certainly hope to add talent from outside the organization,” team president Theo Epstein said. “We will add talent from outside the organization, and I hope we add impact talent. But it has to make sense."  The Cubs are looking at an acquisition window that extends through the 2015-16 off-season, so they won’t “sell out for 2015” as Epstein said.

The White Sox have a very good rotation and a solid hitter in Jose Abreu to go after a starting pitcher, a lefty/switch hitter and bullpen help.

“We can deploy that via free agency or via trade and really not be precluded from any opportunity right now for economic reasons,” Sox general manager Rick Hahn said recently. However, the White Sox are as dependent on actual attendance to fund the team, so last year's decline will hurt budget projects in 2015.


Real expectations for the clubs this off-season:


The White Sox will sign a RHP to be the fifth starter, and sign one or two bullpen arms. There is a remote chance that the Sox will go after a catcher.


The Cubs will sign a veteran 4th OF to platoon in LF with Coghlan, add a back up catcher and a second tier starting pitcher.