Royals sign Jason Vargas to four-year, $32 million contract

27 Comments

Ervin Santana is almost certain to leave Kansas City as a free agent and the Royals announced that they’ve replaced him in the rotation with Jason Vargas, signing the left-hander to a four-year contract. Ken Rosenthal of FOXSports.com says it’s worth $32 million.

Vargas was traded from the Mariners to the Angels for Kendrys Morales last offseason and threw 150 innings with a 4.02 ERA, missing time with a blood clot in his arm pit.

He’s a 30-year-old soft-tosser with a 4.30 career ERA, but Kansas City should be a good home ballpark for masking Vargas’ homer-related issues and before the blood cot he’d thrown 193, 201, and 217 innings the previous three seasons.

Vargas is a decent enough mid-rotation starter, but much like with Jeremy Guthrie last offseason the Royals are making a very long and expensive commitment to a mediocre 30-something starter. The Angels didn’t make Vargas a qualifying offer for fear he’d accept the one-year, $14.1 million deal, so they won’t get any compensation for his departure and he won’t cost the Royals a draft pick.

Must-Click Link: Do the players even care about money anymore?

Getty Images
14 Comments

Yesterday I wrote about how the union has come to find itself in the extraordinarily weak position it’s in. The upshot: their leadership and their membership, happily wealthy by virtue of gains realized in the 1970s-1990s, has chosen to focus on small, day-to-day, quality of life issues rather than big-picture financial issues. As a result, ownership has cleaned their clock in the past few Collective Bargaining Agreements. If the union is to ever get back the considerable amount of ground it has lost over the past 15 years, it’ll require a ton of hard work and perhaps drastic measures.

A few hours later, Yahoo’s Jeff Passan dropped an absolute must-read that expands on that topic. Through weeks of interviews with league officials, agents and players, he explains why the free agent market is as bad as it is for players right now and why so many of them and so many fans seem not to understand just how bad a spot the players are in, business wise.

Passan keys on the media’s credulousness regarding teams’ stated rationales for not spending in free agency. About how, with even a little bit of scrutiny, the “[Team] wants to get below the luxury tax” argument makes no sense. About how the claim that this is a weak free agent class, however true that may be, does not explain why so few players are being signed.  About how so few teams seem interested in actually competing and how fans, somehow, seem totally OK with it.

Passan makes a compelling argument, backed by multiple sources, that, even if there is a lot of money flowing around, the fundamental financial model of the game is broken. The young players are the most valuable but are paid pennies while players with 6-10 years service time are the least valuable yet are the ones, theoretically anyway, positioned to make the most money. The owners have figured it out. The union has dropped the ball as it has worried about, well, whatever the heck it is worried about. The killer passage on all of this is damning in this regard:

During the negotiations leading to the 2016 basic agreement that governs baseball, officials at MLB left bargaining stupefied almost on a daily basis. Something had changed at the MLBPA, and the league couldn’t help but beam at its good fortune: The core principle that for decades guided the union no longer seemed a priority.

“It was like they didn’t care about money anymore,” one league official said.

Personally, I don’t believe that they don’t care about money anymore. I think the union has simply dropped the ball on educating its membership about the business structure of the game and the stakes involved with any given rule in the CBA. I think that they either so not understand the financial implications of that to which they have agreed or are indifferent to them because they do not understand their scope and long term impact.

It’s a union’s job to educate its membership about the big issues that may escape any one member’s notice — like the long term effects of a decision about the luxury tax or amateur and international salary caps — and convince them that it’s worth fighting for. Does the MLBPA do that? Does it even try? If it hasn’t tried for the past couple of cycles and it suddenly starts to now, will there be a player civil war, with some not caring to jeopardize their short term well-being for the long term gain of the players who follow them?

If you care at all about the business and financial aspects of the game, Passan’s article is essential.