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 …

Jason Heyward hopes to return to Cubs’ lineup on Friday

Chicago Cubs' Jason Heyward hits a double to drive in Dexter Fowler off Cincinnati Reds relief pitcher J.J. Hoover during the ninth inning of a baseball game, Friday, April 22, 2016, in Cincinnati. The Cubs won 8-1. (AP Photo/John Minchillo)
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Cubs outfielder Jason Heyward hasn’t played since Sunday due to a sore right wrist, but he’s hoping to be included in his team’s lineup on Friday, MLB.com’s Carrie Muskat reports. Matt Szucur, Ben Zobrist, and Kris Bryant have handled right field while Heyward has been out.

Heyward, 26, has gotten off to a disappointing start, as he’s batting .211/.317/.256 with only four doubles, no home runs, and 13 RBI in 104 plate appearances. He signed an eight-year, $184 million contract with the Cubs back in December.

Heyward said he hurt his wrist putting emphasis on it during hitting drills. He said, “I was doing some work off the tee and doing a drill with a donut on the bat, swinging, trying to stay through the middle, and I put more emphasis on [his wrist] and strained it from that.”

Cardinals plan to get creative to keep Aledmys Diaz in the lineup

St. Louis Cardinals' Jedd Gyorko high-fives with Matt Carpenter as they and Aledmys Diaz, center, leave the field following the Cardinals' 11-2 victory over the San Diego Padres in a baseball game Saturday, April 23, 2016, in San Diego. (AP Photo/Lenny Ignelzi)
AP Photo/Lenny Ignelzi
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Cardinals shortstop Jhonny Peralta is expected to return from the disabled list in early June, which means current shortstop Aledmys Diaz would return to the bench. There’s only one problem: Diaz has been one of the best hitters in baseball. The 25-year-old owns a sparkling .381/.422/.679 triple-slash line with 14 extra-base hits (including five homers) in 90 plate appearances.

The Cardinals plan to get creative to keep Diaz’s bat in the lineup. Per Jon Morosi of FOX Sports, the club is considering using Peralta at first and third base. Peralta, 33, last played third base in 2010 with the Indians and Tigers. He has logged only three games and nine total defensive innings at first base in his major league career.

Diaz isn’t about to displace Peralta. Last season, Peralta was one of the best-hitting shortstops, finishing with a .275/.334/.411 triple-slash line with 17 home runs and 41 RBI in 640 plate appearances. He was even more productive in 2014, his first year with the Cardinals.

Chris Bassitt will undergo Tommy John surgery on Friday

Oakland Athletics pitcher Chris Bassitt sits in the dugout after being relieved against the Detroit Tigers in the fourth inning of a baseball game in Detroit, Thursday, April 28, 2016. (AP Photo/Paul Sancya)
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Athletics pitcher Chris Bassitt will undergo season-ending Tommy John surgery on Friday, MLB.com’s Jane Lee reports. He was diagnosed with a partially torn ulnar collateral ligament over the weekend, so this news doesn’t come as much of a surprise.

Bassitt, 27, is certainly out for the remainder of the 2016 season and will likely miss a sizable portion of the 2017 season as well. The right-hander made five starts for the A’s to begin the season, but put up an ugly 6.11 ERA with a 23/14 K/BB ratio in 28 innings.

Jesse Hahn took Bassitt’s spot in the Athletics’ starting rotation. Hahn is expected to start next on Saturday versus the Orioles.

Report: Twins place Tommy Milone and Casey Fien on waivers

Minnesota Twins starting pitcher Tommy Milone throws during the first inning of a baseball game against the Milwaukee Brewers Wednesday, April 20, 2016, in Milwaukee. (AP Photo/Morry Gash)
AP Photo/Morry Gash
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Mike Berardino of the St. Paul Pioneer press is reporting that the Twins have placed pitchers Tommy Milone and Casey Fien on waivers. Berardino adds that Fien would be able to reject a demotion to the minors if he passes through waivers, but Milone could not. Milone and Fien are only a part of what’s been ailing the 8-20 Twins.

Milone, 29, was solid out of the rotation for the Twins last season, but the same can’t be said of his start to the 2016 season. The lefty has a 5.79 ERA with a 19/7 K/BB ratio over four starts and one relief appearance. He was taken out of the Twins’ rotation following his final start in April.

Fien, 32, was also dependable for the Twins in previous years, but has had a rocky 2016 thus far. The right-hander has yielded 12 runs on 21 hits and three walks with 12 strikeouts in 13 2/3 innings.

Milone will be eligible for his third and final year of arbitration after the season after earning $4.5 million this season. Fien has two more years of arbitration eligibility left — his third and fourth — and is earning $2.275 million this year.