Keith Law ranks the farm systems

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After Jane Austen and Alton Brown’s birthdays, today and tomorrow are the two biggest days in all of Keith Lawdom.  Tomorrow it’s his top 100 prospects. Today: ranking the farm systems.  The features are for ESPN Insider members only, but in all honesty, these are two of the features that make getting an Insider subscription worthwhile. If you care a lick about player development, you’ll be going back to them over and over.

Anyway, the systems:  Texas leads the pack for the second year in a row. Frankly, seeing them so high again makes me feel a bit better, as I harbored a secret fear that last year’s top ranking was totally attributable to Frank Wren overpaying for Mark Teixeira a couple of years ago.

Other notables: Boston is second, my Braves are fifth, with Law giving me happy feelings about a potential shutdown rotation come, oh, 2013 or so.  The Cubs are seventh. The Royals are ninth, which pleasantly surprised me because I still remember a time when the Royals were considered the class organization in the American League, and though I don’t root for them, I liked the world back then.

The Mets are at 15, which may be as close to the middle of the pack they get in any category this year.  The Dodgers are at 19. The Yankees are at 25, but it’s not like they depend on the farm system all that much. And heck, if they’re unhappy with their rating maybe they can just buy Law himself and find themselves much higher next year.  The Cardinals and White Sox come in at 29th and 30th, respectively.

As is always the case with these sorts of lists, the comments are more useful than the rankings themselves, so if you are able, I recommend giving the piece a read.

The Padres owners try to explain why they aren’t spending money

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There was an interesting article in the San Diego Union-Tribune over the weekend about the Padres, their owners and their finances.

The article purports to be a rare look into the finances of a big league club. And yes, the owners opened their books, to a degree, to the writer of the story, talked about the team’s financial position, its debt and its approach to team payroll, past, present and future. The upshot: the team has had lots of debt, has had to do a lot of work to get out of that situation and now, with some restructuring out of the way, the club looks forward to spending more on players. Eventually. Like, maybe in 2020 or 2021.

On the one hand, yes, it’s actually got some good information in there! Some details about team finances you don’t often see. Which is totally cool as far as that goes. The problem is that the article doesn’t go nearly as far as it may seem and, in the end, is just a far more elaborate than usual excuse from a team about its failure to spend money.

The tell here comes from what is not mentioned as opposed to what is. For example, while it talks about how much is being spent on various things — baseball salaries, operating, marketing, etc. — nowhere does it talk about the owners’ own take. Rather, it leaves you with the impression that the owners haven’t seen a dime from the team in the several years that they’ve owned it. Color me extraordinarily skeptical about that. As we’ve seen with other clubs — most notably the Marlins, but most do it — broad categories such as “baseball operations” or “non baseball operations” often include substantial payments to owners in less-than-obvious line items. Payments to LLCs and partnerships for “consulting” or “management fees” or what have you. Do the Padres have similar expenditures? We can’t tell from this article, but it’s telling to me that they have spent about as much on front office/miscellaneous baseball ops stuff as player salaries over the past several years. A lot of that has been at building a strong minor league development system, but I’m guessing not all.

Similarly, there is an awfully large portion of the article aimed at telling the tale of the clubs’ massive debt and its restructuring. Yes, debt service can be a killer for liquidity, but it doesn’t really talk too much about the debt for its own sake. Such as the fact that (a) the current owners knew full-well of the debt they were inheriting from the previous owner, John Moores, when they bought the team; and (b) that by assuming the debt, their purchase price for the team was lowered, as it always will be in transactions that involve a lot of debt-assumption. The current owners have had the team since 2012. I don’t recall them telling the public then that there would be a near decade’s worth of swimming against the current of debt before they started paying for players. That’s never been in the season ticket brochure.

It’s also worth noting that, for as much as the debt restructuring is talked up in the story, it is saving the Padres only $8 million a year. They’ve been at least $60 million below the luxury tax threshold for several years now. It’s more than the club’s debt keeping them from spending money. It’s largely been a choice.

Again, none of which is to say that the article is not interesting in its own right. It certainly is. There is certainly more information here than one typically sees in an article about a team’s finances. But it is just partial information. Moreover, it seems to be aimed at justifying another year or two of non-contention to fans without satisfactorily explaining all of the many years of non-contention which preceded it. The Padres famously went all-in and spent some money on players in 2015. Why did that make sense then if this debt problem has been there all along? Why did they give Eric Hosmer over $100 million last year? The article wants to portray ownership as sober and responsible and prudent and use that to explain why the Padres have stunk on ice for a good long time, but it is not very convincing in communicating some consistent, rational thread from ownership.

That all of this comes at a time when clubs are being criticized for not spending money is no accident, I suspect. As such, I am choosing to read the piece for some interesting information it conveys while understanding that it has a pretty significant P.R. component to it as well.