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 …

2016 Winter Meetings Preview

NATIONAL HARBOR, MD - FEBRUARY 26: The Gaylord National Resort and Convention Center is seen along the Potomac River February 26, 2014 in National Harbor, Maryland.  (Photo by Chip Somodevilla/Getty Images)
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The baseball world will descend on Washington D.C. — well, the Maryland suburbs of Washington, at the Gaylord Resort at National Harbor — this weekend for the 2016 Winter Meetings. There’s a lot of work to be done.

Twenty free agents from a class of 191 have signed thus far. Among the notable: Yoenis Cespedes, Edinson Volquez, Neil Walker, Josh Reddick, Bartolo Colon, and R.A. Dickey. That, of course, leaves a ton of notables left, including Edwin Encarnacion, Justin Turner, Jose Bautista, Aroldis Chapman, Kenley Jansen, Mark Trumbo, Mark Melancon, Rich Hill and a host of others. Here is our rundown of this offseason’s top free agents if you’re curious. As you have come to expect from us, we’ll have a writeup of everyone who signs, faster than almost anyone else will.

Despite the sheer number of available free agents, this is an historically thin free agent class in terms of talent. That means that, for a team to improve significantly, they may be better served by making a trade. We’ve seen a couple already, most notably the deals which sent Taijuan Walker to the Diamondbacks, Jaime Garcia to the Braves and Brian McCann to the Astros. Most experts believe there will be plenty more this winter, and the ball could really get rolling on that in the next week with guys like Andrew McCutchen, Chris Sale, Chris Archer, Jay Bruce, Curtis Granderson and Brandon Phillips on the block.

Another major activity of the Winter Meetings is the Hall of Fame Veterans Committee vote. Except, this year, there is no Veterans Committee, at least in name. It’s now the “Today’s Game” committee. Here are links to breakdowns of the candidacies of all ten men on the ballot the new committee will consider:

Harold Baines
Albert Belle
Will Clark
Orel Hershiser
Mark McGwire
George Steinbrenner
Davey Johnson
Lou Piniella
John Shuerholz
Bud Selig

Trade deals, free agent negotiations and Hall of Fame votes take place behind closed doors at the Gaylord Resort. One of the major public activities of the Winter Meetings is when all 30 of the managers meet and greet the press. This year’s new faces are Torey Lovullo with the Diamondbacks, Rick Renteria with the White Sox and Bud Black with the Rockies. Brian Snitker, now the permanent manager of the Braves, will get his first go-around at the managerial cattle call. I’ll be in the scrum for a lot of these guys — they do them two at a time so I can’t see everyone — and will let you know if they say anything fun.

Outside of the transactions and the Hall of Fame stuff, we have the more mundane Winter Meetings business. And a lot of it. Indeed, the vast majority of the people at the Meetings aren’t there for transactions. They’re there to network, seek jobs and discuss the business of baseball like any other industry convention. Ever year we hear about a rule change or a proposal for future rule changes at the Meetings, though this year’s brand new Collective Bargaining Agreement should overshadow that. We’ve already discussed the major points of that and, yesterday, I speculated that, as time goes on, the way this agreement was reached could lead to some serious strife going forward, particularly on the union side. Expect to hear some anonymous rumblings about all of that in the next few days, from players, agents and other interested parties who may not be all that pleased with how it goes.

The final event of the Winter Meetings is the Rule 5 Draft, which will take place at 8am on Thursday morning. You likely have no idea who most of the players who will be selected are, but here’s a good place to start your research on that. If your team takes someone in the draft, the most important thing to know is that he’ll either be on the big league roster all year or he’ll have to be returned to his original team. Well, they could be stashed on the disabled list with phantom injuries so they won’t have to be returned, but no team would ever do that, would they? Perish the thought.

So, yes, there’s a lot to be done. I’ll be on the scene at National Harbor, bringing you all the best hot stove business we have to offer and, as usual, some more fun odds and ends from baseball’s biggest offseason event. As they used to say in radio, tune in to us and rip off the dial. Or, at the very least, keep a tab open to us and refresh a lot.

The Padres non-tendered RHP Tyson Ross

SAN DIEGO, CALIFORNIA - APRIL 04:  Tyson Ross #38 of the San Diego Padres walks off the field as he's taken out of the game in the sixth inning of a baseball game against the Los Angeles Dodgers on opening day at PETCO Park on April 4, 2016 in San Diego, California.  (Photo by Denis Poroy/Getty Images)
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Per a report by MLB.com’s AJ Cassavell, the Padres non-tendered right-handed starter Tyson Ross on Friday, cutting loose their top ace after three seasons with the club.

Ross, 29, was sidelined for the bulk of the season with inflammation in his right shoulder and underwent thoracic outlet surgery in October. His injuries limited him to only 5 1/3 innings in 2016, during which he gave up seven runs and struck out five in a 15-0 blowout against the Dodgers.

Prior to his lengthy stint on the disabled list, the right-hander earned 9.5 fWAR and pitched to a 3.07 ERA and 9.2 K/9 rate in three full seasons with the Padres. He avoided arbitration with a one-year, $9.625 million deal prior to the 2016 season after leading the league with 33 starts and delivering a 3.26 ERA and career-best 4.4 WARP over 196 innings in 2015.

The Padres appear open to bringing Ross back to San Diego, reported Cassavell, albeit not at such a steep cost. Cassavell quoted Padres’ GM A.J. Preller, who was reportedly in trade talks involving Ross but unable to strike a deal, likely due to the right-hander’s recent health issues. Preller denied that those same health issues factored into the club’s decision to non-tender their ace.

With the move, Ross became one of 35 major leaguers to enter free agency on Friday.