It’s prospect season. Over at FanGraphs, we released our Top 200 Prospects list yesterday; last week, Rob wrote about flipping through the recently released Prospect Handbook from Baseball America. It seems like everyone is currently in the process of ranking and grading minor leaguers, speculating about which ones are going to become the stars of tomorrow.
But as Rob pointed out last week, most of the guys we’re so excited about now are never going to pan out. Quoting his piece, which in turn quotes BA’s Handbook.
“In the 2011 Prospect Handbook, we detailed the depth of the Royals’ top-ranked farm system, which we also featured on the cover of the March 2011 issue of Baseball America magazine. No team had ever placed nine players in Baseball America’s Top 100 prospects before, and group – both as big leaguers and through trades – helped form the core of the Royals’ 2014 American League pennant winners.
Turning a losing franchise into a winner – that’s why prospects matter.”
Here are those nine guys who made the Top 100 list: Eric Hosmer, Wil Myers, Mike Moustakas, John Lamb, Mike Montgomery, Christian Colon, Danny Duffy, Chris Dwyer, Aaron Crow.
I will pardon you for being underwhelmed.
Rob is right; the Royals had one of the most celebrated farm systems of all time, and a majority of their prospects haven’t done jack squat in the big leagues. Some of the guys who weren’t as highly heralded have become stars, and the Royals are absolutely an example of why prospect development can help turn a franchise around, but even in boasting of a clear success story, there are examples of failure everywhere.
In fact, according to most of the research done on prospect rankings, the failure rate for players ranked within Baseball America’s Top 100 approaches 70%. Even selecting the cream of the crop, theoretically the guys we should have the best information on, seven in ten fail to become significant big league contributors.
This seems like a lousy success rate, and it’s one of the reasons why there is significant pushback against the rising valuations teams are putting on minor league players with no big league track record. For example, the Phillies have been frustrated by the market’s unwillingness to surrender the kinds of talent they believe Cole Hamels is worth, and likely the kind of return he would have brought even a few years ago. The relative values teams are placing on on big league stars and minor league prospects has shifted towards the young kids, even as most of them continue to fail.
Even JABO’s own Ken Rosenthal has argued strongly that prospects are currently being overvalued in trade negotiations, and that teams should not be so afraid to part with their best young talents. That 70% failure rate supports these suggestions; why be so attached to an asset that is more likely than not going to lose all of its value?
Read the rest on Just a Bit Outside.