Money, money, money (and Bud Selig’s nirvana)

16 Comments

You probably know that one of Bud Selig’s big objectives as commissioner of baseball was to even the playing field – that is, to give the small-market teams a chance to contend. A luxury tax was instituted. Wildcards were added to the playoffs. The amateur draft had numerous rules changed. Sure, many people thought it was all a ploy to take money from the players and give it to the owners – and let’s not be naïve, I’m sure some of it WAS a money grab – but I always thought that competitive balance really was an issue close to his heart. Selig had been a small-market owner. He had grown up a small-market baseball fan. He will talk passionately and often about how every fan should have hope on Opening Day – he borrowed that from me, by the way — and I feel sure he believes that.

Funny thing: Here at the end of his tenure, baseball is closer to Selig’s nirvana than perhaps ever before. As Brian McPherson writes in the Providence Journal, the correlation between money spent and winning is at its lowest point in a long, long time. McPherson writes that the correlation right now between wins and money is actually smaller than the correlation between wins and alphabetical order.

Why is this a funny thing?

Because, I believe the reason for whatever actual effect we are seeing is pretty directly tied to the steroid years that Selig has been running away from for more than a decade.

Before we get to that, let’s look quickly at the playoff picture. As it stands right now:

American League

East: Baltimore (15th in Opening Day payroll)

Central: Kansas City (19th)

West: Oakland (25th) and Los Angeles Angels (6th)

Wildcard No. 1: Oakland or LA

Wildcard No. 2: Seattle (18th)

National League

East: Washington (9th in Opening Day payroll)

Central: Milwaukee (16th)

West: Los Angeles Dodgers (1st)

Wildcard No. 1: St. Louis (13th)

Wildcard No. 2: San Francisco (7th)

So, as you can see, the game is not being dominated by the highest-payroll teams anymore – of the Top 5 payrolls, only the Dodgers are in the playoffs in the season ended today. This, however, is at least a bit deceiving. Detroit has a Top 5 payroll and is just 1 1/2 games behind Kansas City – I suspect most people suspect the Tigers will catch the Royals before it’s all done. And those vampire Yankees, the team Michael Schur will tell you cannot be killed, linger two-and-a-half games behind the Mariners for the second wildcard spot. If just those two things switch, suddenly six of the ten playoff teams will have Top 10 payrolls. So it’s possible to get carried away by the moment.

Still, something is happening. Philadelphia is in shambles with a huge payroll. The Red Sox are again in last place with a huge payroll. The vampire Yankees have been hot lately but I’m still not buying them and they have flashed a whole lot more mediocrity than promise this year. The Rangers have a huge payroll and are the worst team in baseball. The Blue Jays and Diamondbacks and Reds and even the Twins are trying to spend money but seem to be spinning their wheels or are in screaming descent.

So, why is this happening? I have a theory – one that directly relates to my belief that many baseball teams are doing something that is monumentally stupid. I’m referring to the huge, long-term deals that they are giving players – deals that last until the players are in their mid-to-late 30s, and sometimes even carries them into their 40s. These contracts are a death trap, a suicide rap, and while there are exceptions to every rule, there are never more than a few exceptions. Giving huge, long-term contracts to players in their late 20s or early 30s is self-destructive. Period.

Let’s look at those big payroll teams that are struggling.

No. 2 in payroll: Yankees. Even with Alex Rodriguez mostly off the books for a year, the Yankees have these suffocating long term deals with Mark Teixeira, C.C. Sabathia, Jacoby Ellsbury, Brian McCann, heck, they just scooped up the next two years of Martin Prado for some reason.

No. 3 in payroll: Philadelphia. Covered this one. Almost 70% of their payroll is going to big deal guys — Ryan Howard, Cliff Lee, Cole Hamels, Chase Utley, Jonathan Papelbon, A.J. Burnett and Jimmy Rollins. Throw another $16 million in the pot for Carlos Ruiz and Marlon Byrd. What the heck could Ruben Amaro have been thinking?

No. 4 in payroll: Boston. The Red Sox salary structure is a bit different from the Yankees or Phillies… but they are still putting an old team on the field. Dustin Pedroia, David Ortiz, Mike Napoli, Daniel Nava, all in their 30s. You can see them trying desperately to get younger now.

No. 8 in payroll: Texas. Lots of terrible contracts here – Prince Fielder for another six years, Shin Soo Choo for another six years, some big money about to kick in on Elvis Andrus. The Rangers have had terrible luck this year with health but this is a team staring into the barrels of some serious financial pain anyway.

So … what does this have to do with the Selig Era?

Well, there were two things that happened during the late 1990s and early 2000s that were unusual. One, of course, was the crazy proliferation of home runs. But the second was the way players aged. For a long time before the 1994 strike, players tended to age at more or less the same rate. There are countless ways to quantify this – I did a simple spreadsheet looking at players with 3.0 WAR or better. A player with 3.0 WAR is a good player (but not necessarily a great one) and there are usually 25 to 30 of them in any given season, sometimes a few more, sometimes a few less.

For decades before the late 1990s, about 72% of those good 3.0 players were younger than 30. Almost all the rest were between 30 and 34. Very few were older than 35 –  from 1972-1997 only 16 of the 594 players with 3.0 WAR were 35 or older. This seemed the natural aging pattern of players.

Here, for your information, is an incomplete list of Hall of Famers and all-time greats who never had even a 3.0 WAR season after age 35: Rickey Henderson, Rogers Hornsby, Mickey Mantle, Cal Ripken, Johnny Bench, Robbie Alomar and Yogi Berra.

It changed in the late 1990s and early 2000s. In 1998, for instant, HALF the 3.0 WAR players were 30 or older. It was similar in the the surrounding years. If you include all the years from 1996 to 2004, more than 40% of all the 3.0 WAR players were at least 30 years old.

Beyond that, we suddenly started seeing 35-year olds performing at very high levels. People will immediately say that this was because of the popularization of PED use, and that was certainly a factor. It’s also possible there were other factors – smaller strike zones, smaller parks, better bats, many others. But whatever the reasons, there were a few years there where the idea of a player performing well until his mid-to-late 30s suddenly seemed reasonable.

My guess is that this seemingly reasonable conclusion that baseball players had started to beat the aging process was, in fact, quite unreasonable and it is probably the biggest factor in these massive, sprawling and utterly doomed long-term contracts. Teams started trying to lock up player’s last year for huge dough. Best I can tell, there are 22 players who are signed for big money for at least five seasons after this one. They are:

Atlanta: Freddie Freeman.

Boston: Dustin Pedroia.

Cincinnati: Shin-Soo Choo; Joey Votto.

Colorado: Troy Tulowitzki.

Detroit: Justin Verlander; Miguel Cabrera.

Los Angeles Angels: Albert Pujols; Mike Trout.

Los Angeles Dodgers: Matt Kemp; Clayton Kershaw.

Milwaukee: Ryan Braun.

New York Mets: David Wright.

New York Yankees: Jacoby Ellsbury; Masahiro Tanaka.

San Francisco: Buster Posey.

Seattle: Robinson Cano; Felix Hernandez.

Texas: Elvis Andrus; Prince Fielder.

Washington: Ryan Zimmerman.

How many of those contracts would you want? Before you answer, consider that these are mostly newer contracts – we don’t have any perspective on them yet. But we do have perspective on the LAST batch of big-money contracts – here are the big money contracts running out the next three years: Vernon Wells; Alfonso Soriano; Cliff Lee; C.C. Sabathia; Matt Holliday; Ryan Howard; Mark Teixeira; Josh Hamilton, Jayson Werth; Matt Cain; Carl Crawford; Alex Rodriguez; Jose Reyes.

How many of THOSE contracts would you want?

Baseball owners’ and GM’s madness for big money contracts to aging players has, in its own way, evened the game more than anything else Selig or any other commissioner has done. The Yankees stopped developing their own players and bought their way into a pit. The Red Sox had a couple of only moderate seasons, went on a shopping spree, and bought their way to their two worst seasons in the last half century or so. The Phillies spent a crazy fortune in a hopelessly misguided effort to keep a good team together well past its expiration date.

Even the high-spending teams that are doing well this year – the Angels and Dodgers in particular – are basically tiptoeing around some calamitous contracts.

There’s a great line in The Office where the HR representative Toby – who knows that the boss Michael despises him – finds himself stuck in the back with the impossibly annoying Kelly and Ryan, who spend all hours fighting and making up and fighting more. “I don’t think Michael meant to punish me by putting me here with them,” he said. “But if he did – genius.”

That’s what I see here too. I don’t think Bud Selig meant to even up the game by getting the big teams to wasted their huge money advantages on old and rapidly declining players. But hey, if he did – genius.

Texas Rangers ink free-agent ace Jacob deGrom to 5-year deal

Jacob deGrom
USA Today
0 Comments

ARLINGTON, Texas — Jacob deGrom is headed to the free-spending Texas Rangers, who believe the health risk is worth the potential reward in trying to end a six-year run of losing.

The two-time Cy Young Award winner agreed to a $185 million, five-year contract Friday, leaving the New York Mets after nine seasons – the past two shortened substantially by injuries.

“We acknowledge the risk, but we also acknowledge that in order to get great players, there is a risk and a cost associated with that,” Rangers general manager Chris Young said. “And one we feel like is worth taking with a player of Jacob’s caliber.”

Texas announced the signing after the 34-year-old deGrom passed his physical. A person with direct knowledge of the deal disclosed the financial terms to The Associated Press. The person spoke on condition of anonymity because the club did not announce those details.

The Rangers were also big spenders in free agency last offseason, signing shortstop Corey Seager ($325 million, 10 years) and second baseman Marcus Semien ($175 million, seven years).

The team said deGrom will be introduced in a news conference at Globe Life Field next week following the winter meetings in San Diego.

“It fits in so many ways in terms of what we need,” Young said. “He’s a tremendous person. I have a number of close friends and teammates who played with Jacob and love him. I think he’s going to be just a perfect fit for our clubhouse and our fans.”

Texas had modest expectations after adding Seager, Semien and starter Jon Gray ($56 million, four years) last offseason but still fell short of them.

The Rangers went 68-94, firing manager Chris Woodward during the season, and then hired Bruce Bochy, a three-time World Series champion with San Francisco. Texas’ six straight losing seasons are its worst skid since the franchise moved from Washington in 1972.

Rangers owner Ray Davis said the club wouldn’t hesitate to keep adding payroll. Including the $19.65 million qualifying offer accepted by Martin Perez, the team’s best pitcher last season, the Rangers have spent nearly $761 million in free agency over the past year.

“I hate losing, but I think there’s one person in our organization who hates losing worse than me, and I think it’s Ray Davis,” Young said. “He’s tired of losing. I’m tired of losing. Our organization is tired of losing.”

After making his first start in early August last season, deGrom went 5-4 with a 3.08 ERA in 11 outings. He helped the Mets reach the playoffs, then passed up a $30.5 million salary for 2023 and opted out of his contract to become a free agent for the first time.

That ended his deal with the Mets at $107 million over four years, and deGrom rejected their $19.65 million qualifying offer in November. New York will receive draft-pick compensation for losing him.

The fan favorite becomes the latest in a long line of ace pitchers to leave the Mets for one reason or another, including Nolan Ryan, Tom Seaver, Dwight Gooden and David Cone.

The Rangers visit Citi Field from Aug. 28-30.

When healthy, deGrom is perhaps baseball’s most dominant pitcher. His 2.52 career ERA ranks third in the expansion era (since 1961) behind Los Angeles Dodgers lefty Clayton Kershaw (2.48) and Hall of Famer Sandy Koufax (2.19) among those with at least 200 starts.

The right-hander is 4-1 with a 2.90 ERA in five career postseason starts, including a win over San Diego in the wild-card round this year that extended the Mets’ season. New York was eliminated the next night.

A four-time All-Star and the 2014 NL Rookie of the Year, deGrom was a ninth-round draft pick by the Mets in 2010 out of Stetson, where he played shortstop before moving to the mound. He was slowed by Tommy John surgery early in his career and didn’t reach the majors until age 26.

Once he arrived, though, he blossomed. He helped the Mets reach the 2015 World Series and earn a 2016 playoff berth before winning consecutive NL Cy Young Awards in 2018 and 2019.

But injuries to his elbow, forearm and shoulder blade have limited him to 26 starts over the past two seasons. He compiled a career-low 1.08 ERA over 92 innings in 2021, but did not pitch after July 7 that year because of arm trouble.

DeGrom is 82-57 with 1,607 strikeouts in 1,326 innings over nine big league seasons. He gets $30 million next year, $40 million in 2024 and 2025, $38 million in 2026 and $37 million in 2027. The deal includes a conditional option for 2028 with no guaranteed money.

The addition of deGrom gives the Rangers three proven starters along with Gray and Perez, who went 12-8 with a career-best 2.89 ERA in his return to the team that signed him as a teenager out of Venezuela. Young didn’t rule out the addition of another starter.

With several holes on their starting staff, the Mets have shown interest in free agents Justin Verlander and Carlos Rodon to pair with 38-year-old Max Scherzer atop the rotation.

Now, with deGrom gone, signing one of those two could become a much bigger priority.