Max Scherzer and Jon Lester Have Been Free-Agent Bargains
Two years ago, Max Scherzer and Jon Lester signed deals worth a total of $365 million between them, agreements which would keep both players employed into their age-36 seasons. The accepted wisdom, dating back at least as far as Mike Hampton and Barry Zito, is that signing free-agent starting pitchers to massive contracts into their 30s is a poor idea. If early returns are any indication, last season’s deal for Zack Greinke is unlikely to serve as evidence to the contrary. David Price’s injury scare, meanwhile, provides another reminder of the risks inherent to long-term agreements with pitchers.
Not all such commitments are doomed, however. We’re just entering the third year of the contracts signed by Scherzer and Lester, for example, and so far those deals look quite good.
Two offseasons ago, Lester and Scherzer represented the only two players to receive a contract of $100 million or more. Eight other players signed for at least $50 million, though. All 10 such contracts are listed below. For each player, I’ve also provided an estimate of the value he would have been expected to provide starting with the time he signed. To calculate this estimated value, I began with each player’s WAR forecast from the 2015 FanGraphs Depth chart projections, started with $7.5 million per win, added 5% inflation per year, and applied a standard aging curve. The rightmost column indicates whether the player in question was expected to outperform or underperform the cost of his contract.
Contract (Years, $M) | Contract Value at Time | Surplus/Deficit | |
---|---|---|---|
Max Scherzer | 7/210 | $198.8 M | -$11.2 M |
Jon Lester | 6/155 | $146.1 M | -$8.9 M |
Pablo Sandoval | 5/95 | $127.4 M | $32.4 M |
Hanley Ramirez | 4/88 | $81.4 M | -$6.6 M |
Russell Martin | 5/82 | $109.9 M | $27.9 M |
James Shields | 4/75 | $94.4 M | $19.4 M |
Victor Martinez | 4/68 | $42.7 M | -$25.3 M |
Nelson Cruz | 4/57 | $23.8 M | -$33.2 M |
Ervin Santana | 4/55 | $16.7 M | -$38.3 M |
Chase Headley | 4/52 | $104.1 M | $52.1 M |
The surplus and deficit figures for individual players vary by quite a bit. Overall, however, the actual contract and value numbers are within 1% of each other.
It might be hard to believe that, at the time, projection systems were calling for Chase Headley to record $100 million in value. Remember, though, that he had averaged more than five wins over the three previous seasons and had just completed a four-WAR year. From this point, it looked like Scherzer, Lester, and Hanley Ramirez signed contracts pretty close to their expected value. The number for Scherzer is probably even closer than what we see above after accounting for his deferrals, as he makes just $15 million per season over the playing life of the contract.