Money Bag

And now, a free agency primer


It’s free agent season! Yay!  What’s free agent season?

I know most of you know this stuff, but in an effort to be welcoming to all of the new fans baseball’s blockbuster World Series brought into the fold this year, let’s run down the basics of baseball free agency so that we are not adrift on a sea of ignorance this winter.

The basics:

What’s a free agent?

Simple: a player with no contractual commitments who is free (get it?) to sign with any team he chooses.

Who is a free agent?

The short answer: Anyone not under contract or not otherwise under team control. Those are players who have at least six years of service time on a major league 25-man roster and who do not have an existing contract with a team. Here is an exhaustive list of the guys who are eligible for free agency. Easy, right?

Wait, there are guys who will be free agents without six years of service time, right?

Yep, a few! Players with between three and six years of service time — and some with a little less than three years called “super twos,” but let’s leave that for now — are not free to change teams, but they aren’t in a take-it-or-leave-it situation with respect to their salary for the next season either. Rather, they are eligible for salary arbitration. We’ll get to the details about that in a second. In the meantime, know that sometimes a team doesn’t want to even play the arbitration game and will simply refuse to tender them a contract offer of any kind (i.e. the team will be said to “non-tender” the player) in which case he is free to sign with anyone, just like a guy with six-years of service.

What are these “options” I keep hearing about?

Say a player has a five-year, $50 million deal, and five years have passed. At that point, the contract is usually over. But not always. Sometimes the contract calls for a “team option,” a “player option,” or a “mutual option” at the end of the term. All that means is that built into the contract was an additional year at a given price which either the team, the player (or sometimes both) have the right to simply exercise in order to keep the player out of the free agent pool.  If it’s a team option and the price is a bargain for the team, they’ll exercise it. If it’s a player option and the salary is better than the player thinks he can get on the market, he’ll exercise it. If those conditions don’t exist, the option will be declined and the player will go out on the free agent market.

So, we have all of these free agents, however they got there. Everyone now just goes Galt and the free market decides where they end up, right?

Not so fast, Mr. Rand. We’re almost there. There is one last wrinkle before the greenback bacchanalia begins. We have to deal with Qualifying Offers.

What’s a Qualifying Offer?

In the past, teams who lose a player to free agency could, under certain circumstances, be compensated for their loss by being given a draft pick from the team who signs the player. Kinda took a bit of the “free” out of free agency, given that it costs the signing team and by extension lowers the value of the free agent a bit.  That has been radically changed with the new Collective Bargaining Agreement, but there is still an element of compensation involved.

Now, if a team losing a player to free agency wants draft pick compensation, they have to first make a legitimate one-year contract offer to that player equal to or greater than the average salary of the top 125 free agents from the previous winter based on average annual value. That will change every year, but for 2013, that salary is $13.3 million.  In other words, if you have a free agent on his way out the door, you have to make him a one-year contract offer of $13.3 million in order to get a draft pick back from the team that ends up signing him. The offer must come within five days of the end of the World Series. That’s by this Friday.

Now, the player could just accept the offer in which case his old team has him for that $13.3 million (he has until seven days after the World Series to accept or decline). If he declines, he can still negotiate with his old team at a different price. If he declines the offer and signs someplace else, the old team gets a draft pick at the end of the first round of next year’s draft and the team which signs him loses a first round draft pick in the next draft. Exception: if the signing team had a top-10 pick in the next draft, they lose a second round pick instead.

Got that?

I think so!


So, players can now sign anywhere?

Not right now. They can sign new contracts with their old teams now. The open free agency period in which players can sign anywhere begins at 12:01 AM this Saturday.

At any price?


And no salary cap?

Nope. Baseball loves freedom. Ask yourself: why do those leagues with salary caps hate America?

Do the salaries get nutzoid?

It comes and goes. Baseball goes through cycles in which, in some years, teams hand out ridiculous contracts to players, often way more than they’re owed. Then in other years they come back to a more frugal footing and dollars are harder to come by, especially for the non-superstar free agents.  The sense around baseball right now is that this winter is going to be a bit crazy, as new television deals for the league and many local TV deals for teams are giving team owners at least $30 million more a year in their pockets than they had last year. Sometimes much more. That, combined with (a) baseball’s overall financial health and; (b)  the fact that not as many good young players are hitting the market as they used to due to teams signing younger players to longer contracts before they hit the market, means that the bidding may soon get fierce for the available talent.

So what was this arbitration you mentioned earlier?

Guys with zero to three years of service have to take whatever salary the team gives them. Sorry, dudes. Sucks to be you.  However, arbitration-eligible players — guys with between three and six years of service — have some salary leverage. They can’t freely change teams, of course, but they can enter into a negotiation with their teams each winter over what next year’s salary will be. If they agree — and they can negotiate about it for months if they want — great. If not, they enter into an arbitration hearing in Februay in which the player argues that he should be paid X and the team argues that he should be paid Y. A panel of arbitrators decide who wins. They can’t split the baby here: they pick either the player’s or the team’s proposed salary.

OK, I think I got it all. Anything else?

Nothing I can think of. But if you think of any other questions, put ’em in the comments, and we or our well-versed readers will tackle it.

And be careful out there. With free agent season come free agent rumors, which are a whole ‘nother topic.  Just don’t believe anything you hear about a player’s potential destination. Unless, of course, you hear it from us …

UPDATE: Barry Bonds offered the Marlins hitting coach job. They await his response.

Barry Bonds

UPDATE: The matter of Barry Bonds as the Marlins hitting coach has gone from “consideration” to “offer,” reports Bob Nightengale. The Marlins now await Barry Bonds’ response.

The biggest mystery in all of this is whether Bonds is actually interested. No one has reported that he was willing or even that there have been serious conversations between the Marlins and Bonds. That could be because Bonds, as has always been his practice, doesn’t talk too much to the media. Indeed, we learn more about him from his social media presence than anything reported about him. So it’s possible that Bonds and Jeff Loria have been in contact about all of this and he’s strongly considering it as well.

It’s also possible that this is all nothing and the Marlins are just trying to make a long shot happen.

MONDAY, 5:01 PM: This shouldn’t cause any controversy, lead to a lot of people saying dumb things or provide fodder for jokes at all. Nope, none whatsoever:

In what promises to be a bombshell move, if executed, all-time great slugger Barry Bonds is under consideration to become Marlins hitting coach.

Team higherups have quietly been discussing this possibility for weeks.

That’s Jon Heyman, who reminds us that Bonds has worked with the Giants in the spring in recent years. And who, no matter what else you can say about him, was one of the greatest hitters the game has ever seen. Also worth remembering that despite his controversial past, that greatness came not just from physical gifts, naturally or artificially bestowed. It came from his approach, preparation and strategy at the plate. No one can teach a hitter to hit like Barry Bonds, but you’d think that hitters could be taught to try to approach an at bat the way Barry Bonds would. And who better to do it than Barry Bonds?

That is, if Bonds is willing to drop his seemingly ideal retired life in San Francisco, move to Miami and work for Jeff Loria for nine months a year. Which, eh, who knows? But the possibility of it is pretty fascinating to think about.

Royals avoid arbitration with Tim Collins for $1.475 million

Tim Collins Getty
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Left-hander Tim Collins, who missed the entire 2015 season following Tommy John elbow surgery, will remain with the Royals after avoiding arbitration for a one-year, $1.475 million contract.

Collins was a non-tender candidate due to his injury and projected salary via arbitration, but the Royals are convinced he can bounce back to be a valuable part of the bullpen again in 2016 and beyond. He agreed to the same salary he made in 2015.

Prior to blowing out his elbow Collins posted a 3.54 ERA with 220 strikeouts in 211 innings from 2011-2014 and he’s still just 26 years old. He figures to begin 2016 in a middle relief role.

Joba Chamberlain signs with the Indians

Joba Chamberlain

When you think “Joba Chamberlain” and “Cleveland” you think of the then-Yankees phenom being attacked by midges in the 2007 ALDS. If you don’t remember that somehow, the video evidence is below.

But all of that changes now, as the Indians have just announced that they have signed Chamberlain to a minor league deal with an invitation to big league spring training. That’s no promise of a big league job, but the Indians did make at least one promise to him:


I can vouch for that. The Indians’ Triple-A team is in Columbus and we don’t have midges here.

Chamberlain split time with the Royals and the Tigers in 2015, posting a composite ERA of 4.88 in 36 games of mostly mopup work.

Mariners trying to trade Mark Trumbo by Wednesday

Mark Trumbo

Seattle making Mark Trumbo available has been known for a while now, but Bob Dutton of the Tacoma News Tribune reports that the Mariners are trying to trade the first baseman/outfielder before Wednesday.

That’s the deadline to tender 2016 contracts to arbitration eligible players and with Trumbo set to make around $9 million via that process the Mariners would rather move on before any decision needs to be made. In other words: They don’t want to be stuck with him.

Trumbo has elite power, averaging 30 homers per 160 games for his career, but that power comes with a .250 batting average, poor plate discipline and a .299 on-base percentage, and sub par defense. Mariners general manager Jerry Dipoto has already traded Trumbo once, dealing him to the Diamondbacks back when he was the Angels’ general manager, and now he’s working hard to part ways again.

Ken Rosenthal of reports that the Rockies are among the interested teams.