Money Bag

And now, a free agency primer

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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!

Good!

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?

Yep.

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 …

Chapman has trouble remembering convo with Cubs management about off-field behavior

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CHICAGO — Star closer Aroldis Chapman joined the Cubs on Tuesday, arriving to a mixed reaction in Chicago and saying he couldn’t remember what management told him about off-field expectations and behavior.

After Chapman’s awkward introductory news conference, Cubs president of baseball operations Theo Epstein insisted Chapman understands what the Cubs expect of him after an offseason domestic violence incident.

When the Cubs announced the trade with the New York Yankees on Monday, the team released a statement from Chairman Tom Ricketts saying they were aware of his 29-game suspension to begin the season under Major League Baseball’s new domestic violence policy.

Ricketts said he and Epstein talked by phone with Chapman before the deal was completed and “shared with him the high expectations we set for our players,” adding that Chapman was “comfortable” with them.

But when asked repeatedly about that phone conversation before Tuesday’s game against the crosstown White Sox, Chapman said through an interpreter that he couldn’t recall details because he was taking a nap at the time the call came in.

The question was asked several more times. A Cubs spokesman once asked the question himself to the interpreter, coach Henry Blanco.

“It’s been a long day,” Chapman said. “Trying to remember.”

Asked again several minutes later during the group interview if he could now remember what Ricketts said, Chapman shook his head.

“I still don’t remember,” he said in Spanish.

Epstein called it a misunderstanding and that Chapman was “pretty nervous” as he faced seven cameras and more than two dozen reporters.

“I was on the call, Tom was on the call, Aroldis was on the call and Barry Praver, his agent, was on the call. It happened and it was real,” Epstein said before the Cubs’ 3-0 loss to the White Sox.

Chapman was accused of choking his girlfriend and firing eight gunshots in the garage of a Florida home in October. The woman later changed her story and no charges were filed.

“You learn from the mistakes that you make,” Chapman said.

The case caused the Los Angeles Dodgers to back out of an offseason trade for Chapman. Cincinnati eventually traded him to the Yankees, and after his suspension, the 28-year-old Cuban converted 20 of 21 save chances for New York.

The Cubs have long boasted of stocking their roster with high-character players, helping earn the “lovable losers” label they’ve carried for decades since their last World Series title in 1908.

But the Cubs (59-40) have retooled their roster under Epstein and have the best record in the major leagues despite Tuesday’s loss in which Chapman didn’t pitch. Chapman, who threw a 105 mph fastball last week, fills perhaps the team’s largest hole as he replaces Hector Rondon as closer.

The Cubs sent four players to the Yankees, including shortstop prospect Gleyber Torres, to get one of the game’s top relievers. Epstein said they wouldn’t have made the deal if not for the phone call he and Ricketts had with Chapman.

“Tom laid out the exact same standards that he lays out to everyone in spring training,” Epstein said. “He said, extremely clearly, `Look, Aroldis, I tell all the players this in spring training and it’s important you hear it and I need to hear from you on this. We expect our players to behave. We hold our players to a very high standard for their behavior off the field. And we need to know you can meet that standard.’

“Aroldis said `I understand. Absolutely, I can.'”

The Cubs activated Chapman before Tuesday’s game and designated left-hander Clayton Richard for assignment.

Reaction to Chapman’s acquisition in Chicago has been tepid. While there were supportive fans on talk radio, the Chicago Tribune carried a front-page column Tuesday criticizing the move. The back of the Chicago Sun-Times tabloid read “Spin City” over a picture of Epstein.

Chapman said he expected a “good reaction” from Cubs fans. He was also asked during the 20-minute meeting with reporters in the visiting dugout at U.S. Cellular Field if we would consider working with organizations looking to prevent domestic violence. Chapman said no.

Cubs manager Joe Maddon defended Chapman.

“He did do a suspension, he has talked about it, he’s shown remorse,” Maddon said. “Everybody else has the right to judge him as a good or bad person. That’s your right.

I want to get to know Aroldis. I think he could be a very significant member and he’s got the potential, yes, to throw the last out of the World Series. And if he does, I promise you I will embrace him.”

Report: Padres working on trading Andrew Cashner

ST. LOUIS, MO - JULY 21: Starter Derek Norris #3 of the San Diego Padres pitches against the St. Louis Cardinals in the first inning at Busch Stadium on July 21, 2016 in St. Louis, Missouri.  (Photo by Dilip Vishwanat/Getty Images)
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Jon Morosi of FOX Sports and MLB Network reports that the Padres are working to trade starter Andrew Cashner. He notes that a deal may be consummated before he takes the hill for Tuesday’s start in Toronto against the Blue Jays. The Marlins, Orioles, and Rangers have had reported interest in Cashner.

Cashner is 4-7 with a 4.79 ERA and a 61/27 K/BB ratio in 73 1/3 innings. He missed over three weeks between June 11 and July 2 due to a strained neck.

The right-hander is earning $9.625 million this season and will be eligible for free agency after the season.