Why Are Teams Issuing Extremely Long Contracts?

I’m going to start today by telling you something very obvious: the new hot trend in contracts this offseason is extremely long deals. You know it. I know it. Ken Rosenthal says it, so it must be true. Living legend Jayson Stark laid it out as only he can: we’ve seen three free-agent deals of 11 or more years in the last two weeks, as compared to one in the entire previous history of baseball.
What factors are behind this hot new contract structure? Did a financial consultant walk through the Winter Meetings whispering “long contracts are in, pass it on” to team employees? I truly wish that were the case. It could be my big break in starting up Ben Clemens Investigates, and I’ve always wanted to wear a Sherlock Holmes hat. Bad news, though: to the best of my knowledge, that didn’t happen. It didn’t have to happen. The incentives to offer long-term deals are mathematically based, and I’m frankly pretty annoyed that I didn’t see this coming in predicting contracts this offseason. Read the rest of this entry »