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FanGraphs Audio Presents: The Untitled McDongenhagen Project, Ep. 13

UMP: The Untitled McDongenhagen Project, Episode 13

This is the 13th episode of a sorta weekly program co-hosted by Eric Longenhagen and Kiley McDaniel about player evaluation in all its forms. The show, which is available through the normal FanGraphs Audio feed, has a working name but barely. The show is not all prospect stuff, but there is plenty of that, as the hosts are Prospect Men.

This episode is unique because Kiley and Meg Rowley have hot Game of Thrones takes to fire off but Eric is tied up with prospect travel.

0:21 – Surprise, the cohost is Meg and she’s not happy with Kiley’s intro.
0:46 – The elite nut-milk hipster coffee situation has expanded to Twitter beef.
3:11 – Kiley explains what’s happening in this episode.
3:45 – Kiley tries out some standup material about coupon codes.
5:55 – Okay, he has one more chunk about IKEA.
9:20 – Meg launches a lifestyle podcast on the Goop network.
9:40 – The Game of Thrones thoughts flow freely.
31:45 – The GOT episode three Death Draft commences.

Don’t hesitate to direct pod-related correspondence to @kileymcd or @longenhagen or @megrowler on Twitter or at prospects@fangraphs.com.

You can subscribe to the podcast via iTunes or other feeder things.

Audio after the jump. (Approximately 44 min play time.)

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Kiley McDaniel Chat – 4/24/19

12:18

Kiley McDaniel: Hello from ATL! Scout is chasing critters in the back yard and I’ll be leaving shortly for a Georgia HS state playoffs double dip, popup RHP Zach Maxwell then popup SS Brennan Milone

12:18

Kiley McDaniel: Going to Alabama for at least part of the weekend, seeing rising prep SS Gunnar Henderson tomorrow then the weekend has tons of college options that I’m still sorting through

12:18

Kiley McDaniel: If you are already in draft mode and somehow didn’t see yesterday’s mock, here it is: https://blogs.fangraphs.com/mock-draft-1-0-the-top-ten/

12:19

Kiley McDaniel: The dope we’re hearing is mostly top 7-10 picks and not a whole lot of specific stuff beyond that because many of the top 10 picks are kinda shrug emoji we’re not sure who will make it to us, so obviously beyond the top 10 there’s even more of that

12:21

Kiley McDaniel: And it’s a lot of “their top evaluators are seeing players x y and z” and “their mix appears to be a b and c” because we specifically know what a couple teams up are thinking (either they tell us off the record or aren’t good at obscuring the truth) and that’s as far as they’ve gotten at this point….so we can’t really give you much more than that for most clubs, even picking up high

12:22

Kiley McDaniel: And most of the clubs we speak with in the 10 to 20 area are really interested in who we think they have no chance to get, so they can focus resources on the guys they have a shot at.

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Mock Draft 1.0: The Top Ten

The June draft order, slot values, and total pool amounts are here on the site for your reference, and our ever-updating draft rankings on THE BOARD now have 314 names for this draft class, which means it’s time for our first 2019 top 10 mock draft. I think you know how this goes, but I’ll reiterate: I’m projecting what I think will happen after consulting with dozens of industry sources, not ranking these players on talent, as THE BOARD does that.

1. Orioles – Adley Rutschman, C, Oregon State
Rutschman still has a good lead here. It sounds like he had a shoulder injury in high school from football contact, but he hasn’t missed any time in college and clubs have mostly decided that even a worst case scenario for this issue still makes him the best prospect in the draft. There’s chatter Baltimore has made calls to explore backup options/bulk approach like new GM Mike Elias did while running the draft in Houston, but that’s seen as a long shot at this point. It’s also worth noting Baltimore’s history of whacking players’ medicals, but it’s unclear if the regime change alters that propensity.

2. Royals – Bobby Witt, Jr., SS, Coleyville Heritage HS (TX)
Two weeks ago, I mentioned that the early buzz was that Andrew Vaughn had the lead for this pick. Late last spring, GM Dayton Moore saw amateur games for the first time in awhile and Kansas City’s first 11 selections were college picks. This came on the heels of four of their previous six first round picks coming from the prep ranks, with their draft philosophy leaning that way as a whole.

It seemed like a philosophical shift at the beginning of a rebuild, but I’ve talked to about four times as many sources on this topic in the last two weeks as I did before, and almost everyone since then is insistent that Witt is the pick here. Vaughn and possibly Hunter Bishop have been mentioned as backup plans, but the top three picks are thought to be pretty locked in at this juncture, with a couple scouting directors guessing it’s about 90% certain to go the way I’ve outlined here.

3. White Sox – Andrew Vaughn, 1B, Cal
With a recent run in the past three drafts of safer-skewing, college hitters in Chicago’s top three round picks (Nick Madrigal, Steele Walker, Jake Burger, Gavin Sheets, Luis Gonzalez, Zack Collins, Alex Call), and a rebuild reaching the critical stages, a quick-to-the-majors prospect makes the most sense here. With Jose Abreu on the downside of his career, Vaughn even fills a need: exactly what the White Sox are looking for here. Nick Lodolo sounds like the most likely backup option if Vaughn and Rutschman go first and second. GM Rick Hahn has seen C.J. Abrams this spring and some teams think the Sox would take Witt if he slides, but none of those alternate scenarios seem likely, with almost everyone in the industry saying Chicago wants a collegiate player here and covet Vaughn.

4. Marlins – C.J. Abrams, SS, Blessed Trinity HS (GA)
This is where things start to get a little tricky. After NHSI, where new scouting director D.J. Svihlik and VP Gary Denbo were locked in on Abrams and seemingly uninterested in Riley Greene on an adjacent field, industry rumors intensified that Abrams was the preference. Earlier in the spring, most believed there was a preference for a college player here, with Lodolo the most common connection. Svihlik used to be on staff at Vanderbilt and some think J.J. Bleday also makes sense here. I’ll go with Abrams for now, but it’s pretty close between these three options and I get the impression this decision is far from made, anyway. Denbo has also seen Witt a few times.

5. Tigers – Riley Greene, RF, Hagerty HS (FL)
The Tigers have been all over Greene all spring, and one of their scouts has a child that goes to Greene’s high school. He’s struggled a bit lately (his swing was too big when I saw him a few weeks ago and he performed just okay at NHSI) but was a strong performer all summer, so most don’t consider it a long-term concern. There isn’t much consensus on whom else Detroit would consider here as another option, though Witt has been mentioned in the event he slides. Power arms and SEC performers are historically the Tigers’ type, so Bleday and his nation-leading 20 homers also makes some sense, but Greene appears to be their preference and he’s almost certain to be available.

6. Padres – Nick Lodolo, LHP, TCU
The Padres has been heavy on Bleday and Lodolo, appearing to lean to college both because that’s what’s here and because it fits their new competitive window. Bishop just got a long look from the decision makers and appears also to be entering their mix, but is believed to be more of a third option at this point. Given GM A.J. Preller’s past decisions, this would also appear to be a spot where a sliding Witt or Abrams could get snapped up. Kentucky lefty Zack Thompson also seems to be in the mix.

7. Reds – J.J. Bleday, RF, Vanderbilt
It sounds like the Reds are on Greene, Abrams, and Lodolo, who are all gone in this scenario. Bleday (video) is the consensus best guy on the board and sources have indicated the preference here is college, with last year’s pick of Jonathan India serving as a template for new scouting director Brad Meador. Cincy still needs pitching and seems the most aggressive on junior college righty Jackson Rutledge, though he fits more as an overslot second pick than underslot first pick.

8. Rangers – Alek Manoah, RHP, West Virginia
Texas is the toughest club to peg in this mock. It sounds like they aren’t excited about what they think will be available to them, and clubs picking around here also don’t have much feel for where Texas leans. This appears to be the floor for Abrams and Witt if they slide, but they’re unlikely to get here. Manoah and Bishop both make sense, but the most common rumor is that the Rangers go below slot for a pitcher to set up an overslot choice with their second pick. Manoah is perceived to be an easier sign than some other options with a cleaner medical than late-rising Kentucky LHP Zack Thompson.

9. Braves – Hunter Bishop, LF, Arizona State
This pick is compensation for not signing Carter Stewart last year, and he projects to go much later this year, so the Braves appear to have come out ahead in the exchange. This pick also isn’t protected if Atlanta doesn’t sign whoever they take, so a tough sign likely isn’t an option. It appears Atlanta would take Abrams or Witt if they get here, and they’ve been scouting Lodolo, Bleday, and Bishop as primary options, with a good chance one of them gets to this pick. It’s unclear if the other prospects on the board at this point excite them, in the event that Texas takes Bishop and all the players Atlanta has been tied to are off the board.

10. Giants – Bryson Stott, SS, UNLV
This weekend, the Giants sent in their heavy hitters to see Missouri RF Kameron Misner at Georgia (his swing still needs some work). He may have the most upside on the board, but he hasn’t been good in SEC play and lacks a summer track record to fall back on. Stott could be another Brandon Crawford, though it’s unclear how the new regime will make high-profile decisions like these. The rumor is that this is another pick that will go college, and likely a college hitter, with new Giants GM Farhan Zaidi having prized versatility and defensive value when building the Dodgers.

Kentucky LHP Zack Thompson has been closing hard lately (while Lodolo has just been okay the last few weeks), so he could jump into the top 10, but some clubs are concerned about his elbow long-term, so that keeps him just out of this projection. Washington prep CF Corbin Carroll is the other prospect who has been mentioned at more than a few top 10 slots, but more as another player in the mix than a primary target. With picks 6-10 leaning college, and three prep bats in the top five, he slides just out of this projection, but could easily jump in future versions. The next two college bats (North Carolina 1B Michael Busch (vide0) and Texas Tech 3B Josh Jung) would also figure to go quickly if we had continued this exercise, but unfortunately, the information gets much spottier at this juncture of the draft.


Kiley McDaniel Chat – 4/17/19

1:29

Kiley McDaniel: Hello from ATL! Had a lunch date with friends of the chat Nick Piecoro and Keith Law (name drops) but I’m here to chat with you

1:29

Kiley McDaniel: Podcast went up today about my recent Florida trip, extension talk and GOT hot takes: https://blogs.fangraphs.com/fangraphs-audio-kiley-mcdaniel-welcomes-th…

1:30

Jeff: Any new buzz inside the top 10 of the draft?

1:32

Kiley McDaniel: An unusual amount of KC fans were interested/outraged/surprised that I said last week most of the industry thinks KC will take Andrew Vaughn at 2. Still seems that way, but talked to some folks this week that think they’ll go with Bobby Witt, conceding that it’s probably one of the two. CHW would definitely not pass on Vaughn if KC did and rumors have MIA leaning college as well, but the top college guy at that point isn’t as clear. A recent shuffle at the top of our rankings has Nick Lodolo and JJ Bleday as their best options.

1:32

Shooter : Couple of draft questions…what are you hearing on Kody Hoese, and what the hell happened to Mitchell Senger?

1:33

Kiley McDaniel: Senger is a lefty from Stetson, a mid major school with a sneaky-good track record for pitching (Kluber, deGrom, Logan Gilbert, Mitchell Jordan, now Senger). He got the yips early and now is back on track, out of the pen. Could be a Nick Sprengel-type late flier based on a solid track record.

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Kiley McDaniel Chat – 4/10/19

12:23

Kiley McDaniel: Hello live from Orlando with Scout in tow. I came back to Florida just for you people. Got the top prep arm in the country last night, Matt Allan

12:23

Kiley McDaniel: here’s some high speed via twitter, two more pitches on the @fangraphs instagram:

 

FanGraphs Prospects
@FG_Prospects

 

Last night @kileymcd saw our 15th-ranked 2019 draft prospect, FL prep righty Matt Allan, sit 94-96 and hit 97 until a rain delay. He also broke off a couple 65-grade breaking balls, here’s one of them fangraphs.com/prospects/the-…
10 Apr 2019
12:24

Kiley McDaniel: Carter Stewart got canceled for today, so plan is to head to Lakeland to get Spencer Howard/Clearwater tonight, then tomorrow double up noon Freddy Tarnok/Will Stewart with Riley Greene/Dylan Crews matchup at night.

12:24

Kiley McDaniel: to your questions:

12:24

Greg: What did you think about Matthew Alan last night?

12:26

Kiley McDaniel: He was 94-96 t97, with a 60-65 CB and CH only in warmups, then rain hit and he came back more 91-94 with a 60 CB and a little less command. Not the slam dunk top 15 pick type for me specifically, but I’m low on most prep righties and the industry says Allan is the consensus top guy (unless Priester keeps coming on like he did last time out).

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Updating Our Draft Rankings

Once again, we’ve done a refresh of all of our draft rankings. They get tweaked multiple times per week in subtle ways, but every few weeks they need a larger overhaul when there are over a dozen guys who have moved around in the key spots. That’s what happened this weekend. We reset the trend arrows a few days ago to clean things up a bit visually. Here are some notes on where we stand now:

  • There is now a level of comfort amongst scouts with the hierarchy of college pitching in this year’s draft. TCU LHP Nick Lodolo is the consensus number one, West Virginia RHP Alek Manoah is the consensus number two, and Elon RHP George Kirby is most scouts’ third choice. Some scouts have Kentucky LHP Zack Thompson third, but he’s had durability issues dating back to high school, so when his medicals come out, he could go anywhere from 10th to 40th.
  • As for high school pitching, it’s a big more muddled. I’m heading out tonight to see the guy who most feel is the best prep pitcher in the draft, Florida prep RHP Matthew Allan. Behind him, most scouts have another Florida prep RHP (whom I’ll see Friday), Brennan Malone. Illinois prep RHP Quinn Priester’s area kicks off a bit later than the Sunshine State but some scouts had him up to 97 mph in his last start, so he may jump into that top tier with Allan and Malone after another couple starts. New Jersey prep RHP (and son of Al) Jack Leiter was good in front of lots of heat last week at NHSI, and he’s probably next in the pecking order, with months of speculation that it’ll take $3 million or more to keep him from going to Vanderbilt. This, along with the varied rankings of prep pitching from team to team, likely makes him a target for an overslot bonus later in the first round by a club with multiple picks (similar to how the Cardinals landed Jack Flaherty).
  • Some preferences in the early picks are becoming clearer. It still seems like Adley Rutschman at one (Orioles) and Andrew Vaughn at two (Royals) are the two easier ones to project with what we know at this point (the full draft order and slots can be found here). Rutschman’s lead at the top spot is still significant, so it would take a major injury or an uglier-than-expected medical to make Vaughn a real option at the first pick for Baltimore. The buzz is that the White Sox are leaning heavily to college prospects for the third pick, with Nick Lodolo in the mix along with the next tier of college hitters, which can be ranked any way at this point (UNLV SS Bryson Stott, North Carolina 1B Michael Busch, Vanderbilt RF J.J. Bleday, Arizona State LF Hunter Bishop, Missouri RF Kameron Misner is the way we have them lined up right now). There’s similar buzz that Miami is also looking hard at college options and that Lodolo is in their mix. Things get a bit hazier beyond that and also depend on the picks at three and four. The general feeling is that this top 10 isn’t strong enough to make every club just take the best player available, so there’s some chatter that clubs picking outside the top five may take a money saver with the first pick and move that money to float a prep prospect to their second pick. That strategy may be more fraught than normal this year with Arizona in possession of a $16 million bonus pool and set to pick 16th, 26th, 33rd, and 34th.
  • We’re up to 271 total players in the 2019 list now and we’re adding to the 2020 and 2021 lists weekly. We also have a handful of 2022 prep names ready for when the unsigned 2019 prep players join that class as college players. I’m starting a Florida swing this week and should see all of the potential first rounders in the state along with a couple Florida State League games. Last weekend, I saw Nasim Nunez, Louisville/Clemson, UNC/Georgia Tech, UNC Wilmington/Kennesaw State, Georgia/Vanderbilt, and a Triple-A game between the Braves and Orioles affiliates. Eric is running around the Pacific Northwest and he’s always bouncing around the backfields and local amateur games back in Arizona. We’ve got new Sony high speed cameras, so stay tuned to the FanGraphs Youtube page (Mackenzie Gore or Ryan Jensen) and Instagram account (Austin Riley or Michael Busch) to see what we’ve been seeing on the pro and amateur end of things, likely at 960 frames per second.
  • Georgia has seemed like it was on the verge of being a top tier program for decades, with all kinds of built-in advantages, and now it appears to be coming together. The 2020 group is strong, headlined by the top two pitchers in the class (RHP Emerson Hancock and Cole Wilcox) along with the Saturday starter (LHP C.J. Smith), and the 2019 class also has a potential first day headliner (3B Aaron Schunk) along with solid day two depth pieces (RHPs Tony Locey and Tim Elliott, SS Cam Shepherd). The top tier SEC programs (LSU, Vanderbilt, Florida have been the top tier recently) often have more than a half dozen top 5-7 round prospects for the next two drafts, a strong freshman class, and a strong high school senior crop. Georgia is joining a number of other strong programs (Arkansas, Mississippi State, Texas A&M, Ole Miss, Auburn) in challenging for an extended stay in the top tier, and some would argue a few of those already have.
  • Along those lines, Miami hasn’t broken through yet, but has a very strong 2020 class with five players (SS Freddy Zamora, 3B Raymond Gil, 1B Alex Toral, RHPs Slade Cecconi and Chris McMahon) on THE BOARD, while only being slated to lose one player who’s on the 2019 list (RHP Evan McKendry).

We Analyzed the Value of International Signing Bonus Money

FanGraphs has obtained bonus figures for over 90% of all the international signings in baseball history. We have all of the most significant bonuses, every big leaguer, notable current prospects, and everything in the mid-six figure range and above, along with many years for which we have every single signing.

This provides us with a pretty complete picture of the distribution and trends of these bonuses, also allowing us to estimate how many players we’re missing. Those players are overwhelmingly names you wouldn’t recognize, guys who played for a couple of years before being released, signing as filler for a five-figure bonus.

We’ve taken out all of the major league deals (think older, high profile Japanese and Cuban players), and we have incomplete data for all of the Mexican players, as MLB notes all of them as receiving a $0 bonus (it’s an easy workaround for a convoluted system that’s mostly cleaned up now). We’ve filled in correct bonuses for players where we have it, mostly among the high profile Mexican signings, like Luis Urias and Julio Urias (no relation).

We could do a lot of things with this data — and we will, including listing it on the player pages and THE BOARD — but the thing that interests me today is combining this bonus data with our asset value research, and the dollars-per-WAR framework to get a better idea of what a dollar invested in an international amateur player returns. We’ll start with some of the meta data:

MLB International Bonuses
Signing Period Players Signed Bonuses Spent
2017 800 $148,540,500
2016 804 $210,356,500
2015 797 $174,537,500
2014 799 $158,928,470
2013 811 $93,906,900
2012 739 $80,762,800
2011 767 $96,603,000
2010 735 $71,383,100
2009 835 $78,751,751
2008 714 $67,641,750
2007 812 $54,658,250
2006 857 $45,318,750
2005 743 $29,177,600
2004 714 $22,662,000
2003 694 $20,784,200
2002 725 $22,276,250
2001 732 $27,548,750
2000 774 $29,755,999
1999 835 $33,971,565
1998 781 $22,811,650
1997 859 $15,424,512
1996 851 $18,473,491
1995 642 $9,349,750
1994 568 $5,062,300
1993 520 $4,946,250
1992 503 $2,863,899
1991 556 $2,180,710
1990 426 $1,873,550
1989 429 $1,434,350
1988 338 $1,252,800
1987 344 $974,850

2017 was the first season of hard-capped bonus pools, which explains why bonuses declined and also why they spiked the year prior. These figures don’t include the pool overage payments made to MLB from 2013 to 2016. We estimate those figures to add up to about $250 million over those four years, with about $100 million paid to MLB in 2016 alone. (The CBA says that this money was to be spent on international operations and initiatives.)

Since the international market changes and matures so rapidly, it makes sense to start with the early 2000s signing classes as a baseline for a similar era to today. Most of the players who signed 15 years ago are now in their early 30s and have either played out their entire careers or are into their seventh year of major league service time. We can grab the dollar-per-WAR figures from the years that spanned their controlled years and turn that historical WAR into a dollar amount of value created. I used seven seasons since we don’t have comprehensive service time data, which, from some spot-checking, appears to do the trick. We have the FV of the most recent signings that are current prospect on THE BOARD, which maps to an asset value.

The most interesting players to analyze signed in the last 5-10 years, are in the big leagues, and are in the middle of their control years, so I had to do some work to peg their value. I quantified what they’ve already produced the same way I did with the older players, then estimated or figured out by hand their current service time situation. I then used our various projections to fill in what those players are expected to produce in the rest of their controlled years.

In short, it’s not perfect, but as with filling in the holes in the bonus data, it’s fairly accurate and any mistakes appear to cancel each other out in the aggregate. There’s some noise in the data year-to-year, but it appears that right around 2004, the market improved its output and has held mostly steady to today. Here’s the production (a combination of produced WAR, projected WAR, and minor league asset values) over this period:

MLB International Bonuses & Value
Signing Period Bonuses Spent Value Created
2017 $148,540,500 $332,700,000
2016 $210,356,500 $471,000,000
2015 $174,537,500 $1,050,844,096
2014 $158,928,470 $973,478,546
2013 $93,906,900 $996,100,634
2012 $80,762,800 $726,692,526
2011 $96,603,000 $1,522,760,170
2010 $71,383,100 $993,880,384
2009 $78,751,751 $1,788,125,002
2008 $67,641,750 $1,071,117,094
2007 $54,658,250 $1,098,835,664
2006 $45,318,750 $1,397,277,617
2005 $29,177,600 $761,251,602
2004 $22,662,000 $1,100,746,973

I included up to the 2017 class, but it would appear that we need three full seasons in the system — with players having signed on July 2, 2015, and played in 2016, 2017, 2018 — before the class as a whole has developed enough to reveal how much value it could create. As such, a dozen years (2004-2015) appears to be our usable sample.

We could use the above figures to create a simple return on investment calculation, but a true ROI would compute what a team is making on the average dollar spent, so we also have to consider the expense to operate the department that signs the players. Building or renting an academy, feeding and housing the players, running a DSL team, paying coaches, trainers, scouts, and administration and travel expenses are all facets of an international operation that are essential to signing and developing these players, so they have to be considered alongside the bonus expenditures. After consulting with some international directors, I’ve estimated those costs for all 30 teams combined and added that to the bonuses, before arriving at an ROI figure that represents something close to what MLB clubs can expect a bonus pool dollar to return. I used a rolling figure to smooth out any noise in the yearly results.

ROI on International Spending
Period Bonuses Overages Expenses Value Rolling ROI
2015 $174,537,500 $60,000,000 $77,581,720 $1,050,844,096 307%
2014 $158,928,470 $65,000,000 $73,702,634 $973,478,546 328%
2013 $93,906,900 $15,000,000 $70,017,503 $996,100,634 433%
2012 $80,762,800 $66,516,627 $726,692,526 517%
2011 $96,603,000 $63,190,796 $1,522,760,170 715%
2010 $71,383,100 $60,031,256 $993,880,384 780%
2009 $78,751,751 $57,029,693 $1,788,125,002 888%
2008 $67,641,750 $54,178,209 $1,071,117,094 994%
2007 $54,658,250 $51,469,298 $1,098,835,664 1044%
2006 $45,318,750 $48,895,833 $1,397,277,617 1110%
2005 $29,177,600 $46,451,042 $761,251,602 1193%
2004 $22,662,000 $44,128,490 $1,100,746,973 1279%

This gives us an idea of what a club’s accounting department would say their ROI was running an international operation in these years. There are a couple of other ways to look at this data. Going forward, we know that overages won’t exist. We also know the maximum that can be spent with hard caps in place. If we were to take the historic spending of 2016 and keep those signing rules, while also imagining that the talent of 2018 demanded the same outlay in bonuses and overages as the group in 2016, we could compare the two realities owners were considering in the most recent completed CBA negotiations:

Alternate Reality 2018 vs. Actual 2018
Period Bonuses Overages Expenses Value ROI
Projected Actual ’18 $150,000,000 $0 $90,487,500 $1,125,000,000 368%
’16 Rules/Talent in ’18 $210,000,000 $105,000,000 $90,487,500 $1,125,000,000 177%

You can see that there’s still a solid positive return even with historic spending levels, but owners negotiated to add a hard bonus cap to the international market, essentially doubling their ROI. The 2016 class was unique in that clubs were motivated to spend wildly in anticipation of the caps and because of that, a great class of Cuban players that couldn’t be duplicated today (four of our top 132 prospects are Cuban players from this class) drove much of that spending. That roughly $315 million expenditure may be the closest figure we’ll get to what clubs think the true value of a historically-talented class is in an open market with multiple motivated bidders. The market is now capped at half that figure.

We can also answer the question of what an international pool dollar is worth going forward. If we assume that the overhead of running a department is fixed, how should clubs think about the value of each additional dollar added to their bonus pool? We could take the table just above this one and use the projected actual 2018 row to figure out the ROI from $150 million in bonuses and the estimated $1.125 billion in value that will be created by the signees. The result is a staggering 650%. It appears that it takes about three years for the an investment in the international market to mostly mature in terms of trade value, though there’s a way to read this data where there’s further value gained in a 5-7 year horizon for full maturity.

This sort of analysis can get too close to quantifying the worth of humans in purely dollar terms, although going through the exercise in this way also helps to define what a fair market price is for someone’s service. 650% is a pretty abstract number to consider, so let’s compare it to an standard investment for wealthy individuals such as baseball club owners: investing in the stock market. An owner can invest roughly $5 million into international market each year and expect a median return of 650% after three years, while a strong 10% yearly compounded return in the stock market over that period would return a 35% return. That sort of return makes clear both the appeal for ownership of signing international players, and capping their bonuses. It also points to how wide a gap exists between the value these players generate for their clubs and their compensation relative to that value.

In the next part of this series, I’ll take a look at some of the best and worst signing classes, if we were to grade out every club’s international signing class over the last 30 years using the framework rolled out today.


Kiley McDaniel Chat – 4/3/19

12:12

Kiley McDaniel: Hello from ATL! I’ll be heading out soon to see prep SS Nasim Nunez and keeping my attention on the early returns from NHSI, which wasn’t loaded enough (all the relevant colleges for 2019 draft talent around Cary are out of town) for me to make my yearly pilgrimage.

12:13

Kiley McDaniel: We’ve got a newly-alive FG instagram page @fangraphs, featuring all of our fancy high speed video

12:13

Kiley McDaniel: And I’ve got a couple big features I’ve been working on, with one that’s internationally-focused coming possibly as soon as tomorrow. And we’re finishing up the lists.

12:14

Joe: Are any of the Cuban players from the list you tweeted 25/6yr guys that the Braves could possibly target since they can’t spend this July 2?

12:14

TJ: Is Miami in on any of these Cuban guys?

12:15

Kiley McDaniel: And some questions about what I reported last night, in a thread here:

 

Kiley McDaniel
@kileymcd

 

Sources: MLB sent clubs a memo today w/a list of Cuban players eligible to be signed in the 2019 int’l bonus pools. MLB is working on creating events for clubs to scout the players, who would be signed in a posting system where the Cuban gov’t gets a cut: pelotacubanablog.com/2019/04/02/fed…
3 Apr 2019

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FanGraphs Audio Presents: The Untitled McDongenhagen Project, Ep. 12

UMP: The Untitled McDongenhagen Project, Episode 12

This is the 12th episode of a mostly weekly program co-hosted by Eric Longenhagen and Kiley McDaniel about player evaluation in all its forms. The show, which is available through the normal FanGraphs Audio feed, has a working name but barely. The show is not all prospect stuff, but there is plenty of that, as the hosts are Prospect Men.

This week we have a one topic show featuring special guest Meg Rowley of this very website. In honor of March Madness, we held a draft of active baseball players on major league 40-man rosters for a round robin basketball tournament. Listen to the episode to hear our logic and then use this poll to vote on who has the best squad. Warning: the poll contains a recap of our rosters, so don’t click on the link before listening if you don’t want those spoiled!

Don’t hesitate to direct pod-related correspondence to @kileymcd or @longenhagen on Twitter or at prospects@fangraphs.com.

You can subscribe to the podcast via iTunes or other feeder things.

Audio after the jump. (Approximately 32 min play time.)

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Kiley McDaniel Chat – 3/27/19

12:20

Kiley McDaniel: Hello from ATL. Scout it outside running around like a maniac and the house smells like garlic because I’ve been cooking and I’m a little heavy handed on that front

12:20

Lilith: When can we expect to see a new mock draft?

12:22

Kiley McDaniel: well we haven’t done one yet and it’s a little silly at this point. we have some concept of the types of players or a couple on the shortlist for clubs in the top 5-10, or maybe clubs lower in the draft that have a very specific type (the Nationals are one) where we can narrow things down pretty well. but at least half of the top 30 picks would be mostly a guess at this point and that’s not content that meets our guidelines.

12:23

The West is Wild: Is Geraldo Perdomo the most publicly “under the radar” prospect for the Diamondbacks?

12:23

Kiley McDaniel: Sure, he and Blaze Alexander were the two popup guys in the short minors for Arizona last summer. Both are strong 40s or 40+s at this point. The guys ahead of them that aren’t top 132 are mostly high picks, so yeah that would be the top sleeper names for the DBacks

12:24

Mark: Will you guys be releasing more detailed scouting on draft prospects?  (by this I mean the scouting grades are great, but the description bubbles are a little light at this point)

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