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TV Ratings Up, But Teams Still Dependent on Cable Providers

Major League Baseball seems to be in a constant public fight about its popularity and importance in society. To some it is in decline, to others it is boring, and to those who point to attendance and revenue, the sport is vibrant and successful and contradicts the nonsense of those who believe baseball is dying. The sport can always do more to keep the game entertaining, but early signs this season indicate that baseball is still relevant and popular, as both attendance and television ratings are higher — the latter despite an overall decline in cable ratings. Increased ratings mean more people are watching the games but don’t provide any more revenue for the teams. When it comes to the lucrative local television deals, ratings do not drive revenue. Local television revenue is still tied to the health of the major cable companies like Comcast and Time Warner.

Before getting to baseball’s dependence on the health of major cable companies, here is a brief look at some early season numbers. The first month of the season has seen big increases in viewership for national games on Fox Sports 1 and MLB Network, including double the amount of viewers aged 18 to 34 watching game on Fox Sports 1. The Chicago Cubs have doubled their ratings after their increased commitment in the offseason as well as the arrival of Kris Bryant. The Kansas City Royals have done the same coming off their World Series appearance. The Houston Astros have seen an increase in viewership after finally resolving their local disputes, at least as far as getting their games on all the local cable packages. The Arizona Diamondbacks have seen their highest ratings in a decade while the games of the Cleveland Indians, Detroit Tigers, Kansas City Royals, St. Louis Cardinals, and San Diego Padres rank first in their broadcast territories among all shows. A recent article by Maury Brown at Forbes showed that baseball games beat playoff games from the NHL and NBA in many markets across the country.

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Jose Iglesias on the Comeback Trail

Most players make it to Major League Baseball without a fully refined skillset. Some players make it to the majors with a particular skill so great it outweighs a lack of skills normally required to function at the major-league level. Sometimes, it is an electric fastball despite a lack of command or secondary pitches. For Dee Gordon and Billy Hamilton, it was elite speed. For players like Yadier Molina and Jose Iglesias, their defensive skills so outweighed their offensive ineptitude that they were brought to the major leagues without the ability to hit anywhere near a major-league level.

Jose Iglesias never hit well in the minor leagues, but his glove has earned him repeated promotions and a starting shortstop job. Iglesias’s development as a hitter was slowed further by losing 2014 due to stress fractures in both legs, but he’s been very successful putting the ball in play this season, capped by a recent extra-inning single that knocked in the winning run in Detroit’s 4-3 10-inning win against the Cardinals on Saturday. At just 25 years old, he has a hitting profile similar to current BABIP sensation Dee Gordon, and while Iglesias could still develop as a hitter like Yadier Molina or other defensive-first shortstops like Ozzie Smith or Omar Vizquel, his hot start is not likely to last.

Iglesias was called up for a week in 2011 as a 21-year-old for the Boston Red Sox when he was hitting .259 with just two walks and no extra-base hits in the early part of the season. He received just four plate appearances before returning to the minors. He was called up again in September to receive a couple more trips to the plate, after hitting just .235/.285/.269 in close to a full season in the minors. In 2012, during the Red Sox lost season, Iglesias again earned a callup, this time after hitting .266/.318/.306 in his final full Triple-A season. He notched just eight hits in 77 plate appearances at the big-league level, but already received comparisons to Omar Vizquel. He began 2013 in Triple-A and hit just .202/.262/.319 before making the big leagues for good.

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MLBPA Should Seek a Higher Minimum Salary

In the next round of negotiations between the players’ union (MLBPA) and the owners, the union’s aim will be to close the growing gap between player salaries and owner revenues. Player salaries a decade ago represented 50% or more of revenue, but that percentage has fallen under 40% as salaries have not kept pace with revenue. The players have several options to try and increase salaries, but the simplest and perhaps most effective route is to significantly increase the minimum salary.

The players separate themselves into classes based on service time, prioritizing the money in free agency upon reaching six years of service time above all else. A tier below the free agents are those with at least three years of service time who are eligible for salary arbitration and generally receive between 40-80% of free agency salaries on one-year contracts. A step below the arbitration eligible-players are active Major League Baseball players with under three years of service time (except for the top 22% of players with between two and three years of service time who are also eligible for arbitration). The MLB players not eligible for arbitration have their salary set by their team, usually very close to MLB minimum which is currently $507,500 and has slowly increased in the past decade. In the tiers below active players, there are players on the 40-man roster in the minor leagues who receive union protection and a minimum minor-league salary, and then there are the rest of the minor leaguers who are not in the union and had many potential protections and salary bonuses bargained away by the players’ union.

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Lance Lynn as the Next Max Scherzer

Lance Lynn first received a rotation spot in 2012 when St. Louis’s then-ace Chris Carpenter went down in Spring Training. Lynn inherited the rotation spot vacated by Carpenter, but did not inherit his role as staff ace, into which Adam Wainwright stepped after missing 2011 while recovering from Tommy John surgery. The Cardinals have once again lost their ace, with Adam Wainwright out for the season because of an Achilles injury. This time, Lance Lynn, secure in his spot in the rotation and current de facto ace, appears poised to drop the de facto qualifier and be one of the top ten pitchers in all of baseball.

As Jonah Keri wrote yesterday, not much was expected of Lynn when he was drafted, but over the last year he has been one of the better pitchers in the National League. The Cardinals tweaked Lynn’s delivery in the minors, instructing him to move his hips more to gain greater leverage towards the plate. The moves helped Lynn throw in the mid-90s out of the bullpen in 2011, and kept his fourseam fastball in the 92-93 mph range as a starter. Lynn has been solid and durable, but not spectacular, as a starter over the past three seasons slotting behind Adam Wainwright. In the early part of this season, he has taken a step forward, mirroring the career of Max Scherzer.

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Healthy Jason Kipnis Taking Ball the Other Way

A little over a year ago, the Cleveland Indians locked up much of their future core, signing Jason Kipnis, Michael Brantley, and Yan Gomes to contract extensions. Kipnis received double the guarantees of his teammates after a great, five-win 2013 season, but last year the fortunes reversed, as Brantley and Gomes both had breakout years and Kipnis struggled. Kipnis got out of the gate slowly in 2015, as the hits were not falling, but a solid approach taking the ball the other way has the new Cleveland leadoff hitter’s production on the rise.

Last April, Kipnis performed well in the first month after signing his $52 million extension, posting a .234/.354/.394 line with a 120 wRC+ that could have been much higher if not for a .250 BABIP. At the end of that same month, though, Kipnis strained his oblique on a swing, forcing him to miss a month. He never got going in his return, hitting just .241/.299/.315 with a 77 wRC+ in 442 plate appearances over the rest of the season despite an acceptable .297 BABIP. Kipnis finished his lost season having produced roughly a win.

Determining the effect of Kipnis’s oblique injury on his production the rest of the season is a tricky proposition. The injury does not require surgery, varies in severity and does not have a set recovery time. Chris Davis and Ryan Braun suffered oblique injuries last season and neither player had a good season, but Joe Mauer played well, albeit without power, after hitting the disabled list for the same injury. Jason Kipnis played through his struggles last year, but he did admit in the spring that the injury gave him trouble.
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The Current State of Bullpen Usage in 2015

The number of innings a team’s bullpen throws over the course of the season has less to do with the performance of the bullpen than the performance of the starters. Teams with starters pitching deep into games rely less on relievers, leaving the bullpen well-rested and allowing the manager to leverage a team’s best relievers in more important situations. A great bullpen might cause a manager to pull his starter at the first sign of trouble, creating more innings for the bullpen, but for the most part, the starter will pitch as many innings as possible and the rest is left for the bullpen. Once the relievers are called upon, it is the manager’s job to divvy out appearances and prevent overuse. So far this season, the Boston and Tampa Bay rotations have put their bullpens in trouble and St. Louis also appear to be in danger of wearing out their core arms — points which I’ll address momentarily.

First, let’s consider performance. In unsurprising fashion, the Kansas City Royals’ bullpen has produced the lowest ERA among all major-league bullpens in 2015. Their relief corps was a featured strength as the team made it to the World Series last year. From 2012 to 2014, the Royals bullpen WAR of 17.7 is more than two wins greater than the second-place Atlanta Braves, and the bullpen is off to a great start in 2015 (even if their 3.35 FIP does not quite match their sterling 1.56 ERA). The graph below shows every bullpen’s ERA and FIP, sorted by the former.

2015+BULLPEN+ERA+AND+FIP

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The Devastation of Danny Salazar

Breaking out for three consecutive years certainly has some positive elements to it, but it also means that the first two breakouts did not completely take. After failing to make the rotation out of Spring Training, Danny Salazar might have moved himself from potential breakout star to post-hype sleeper. After his hot start, the sleeper tag has been removed, and only a potential star remains. Salazar has had periods of dominance in each of the last last three seasons, but those dominant stretches have been followed by problem periods. This is now the fourth time Salazar has been called upon to for an extended role in Cleveland’s rotation, and Salazar, helped by his previous experiences, is now pitching as well as anyone in Major League Baseball. Consider his first roughly-30 innings each time.
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MIke Foltynewicz Needs to Mix Up His Fastballs

Mike Foltynewicz’s future role for the Atlanta Braves is still in doubt. He brings a high-90s four-seam fastball that should play well out of the bullpen or as a starter, but his secondary offerings might not be good enough to consistently get hitters out at the Major League Baseball level. Acquired in a trade for Evan Gattis in the offseason, Foltynewicz has started two games for the Braves this season after 16 bullpen appearances for the Houston Astros last season. Results have been mixed thus far. In 10 1/3 innings this year, Foltynewicz has struck out nine but walked six, giving up seven runs and averaging an unsustainable 19 pitches per inning. Foltynewicz will need to be more efficient if he is to remain a starter, and the increased use of his sinker his second start of the season provides him with weapons to get quicker outs, more strikes, and help set up his big fourseam fastball and still-developing slider.

Foltynewicz’s fourseam fastball has been the 23-year-old’s bread and butter, sitting “95-98 mph and has hit 100 mph as a starter” per Kiley McDaniel’s write-up in his analysis of the Braves prospects. Last season in relief, Foltynewicz used his fastball roughly 50% of the time, averaging 98 miles per hour out of the bullpen, per Brooks Baseball. He mixed in a curve, sinker, and change, but did not throw any of those offerings more than one quarter of the time.

In his first start of the season against the Cincinnati Reds, he relied on his fastball even more than 2014, throwing 60 four-seam fastballs among his 94 pitches. He might not have had the feel for his change as he threw that pitch just four times in the outing, mixing in a curve and sinker for his remaining pitches. For Foltynewicz’s four-seamer to be successful, it likely needs to stay up in the zone to get swings and misses. Here is the pitch plot from his first start.

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Universal DH a Small Help to Player Salaries

Player salaries keep increasing, but at a pace much slower than total Major League Baseball revenue. There is little the players can do about the gap right now, but when the current Collective Bargaining Agreement expires in 2016, the Major League Baseball Players’ Association will have the opportunity to gain a greater share of revenues in the future. The players have a lot of options: increased minimum salaries, earlier free agency, earlier arbitration, and removal of the luxury tax are all monetary changes that would transfer more money from owners to players and have little to no effect on the play on the field. Two other options, a universal designated hitter and a 26th roster spot, would affect the play on the field, but would not provide the players with significant gains off the field.

As Nathaniel Grow wrote recently, the MLBPA has a problem. In his piece, Grow discussed the growing chasm between player salaries and MLB revenues.

After peaking at a little more than 56% in 2002, today MLB player salaries account for less than 40% of league revenues, a decline of nearly 33% in just 12 years. As a result, player payroll today accounts for just over 38% of MLB’s total revenues, a figure that just ten years ago would have been unimaginably low.

Grow’s piece included the following chart (Payroll data from Cot’s Contracts and USA Today; MLB league revenue data from The Biz of Baseball):

mlb-player-share-1994-2014

Owners are pocketing more and more money from revenues and have thus far refused to share their increased wealth. The owners and players last shared a roughly fifty-fifty split of revenues in 2005. Since that time, players have received less than one-third of all additional revenue.
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Mike Trout and One-Man Teams

Mike Trout’s exploits are well known, but no matter how well Mike Trout plays, his team will not succeed without productive play from others in the lineup. Mike Trout is not the first great player with a less than stellar supporting cast. It is something he has gone through already in his brief career. In 2012 and 2014, the Angels had solid teams surrounding Trout that won nearly 90 games in 2012 and won the division in 2014, but in 2013, the rest of the Angels provided poor production and the team wasted a 10-win season. The Angels have gotten off to a slow start at 12-15 and they are certainly far from out of the race at this point, but based on the start of the season and the projections from here on out, the Angels could have trouble providing Trout with support and staying in the playoff hunt as the year goes on.

On offense this season, Mike Trout has been 11.6 runs above average, good for sixth in all of baseball while the rest of the position players have been 26.6 runs below average. Even with Mike Trout, the team has an 85 wRC+ in the early going, ranking 25th in Major League Baseball. Mike Trout is hitting .302/.404/.552. while the rest of the team is .218/.275/.323. Garrett Richards, C.J. Wilson, and Matt Shoemaker should perform well in the rotation, but the team projects to finish the season around .500. No matter how hard he tries, Mike Trout cannot end every game like this:
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