Did We Get Free Agency All Wrong?
We’ve heard all offseason that baseball teams are getting smarter. One of the strategies employed by those smart teams is to wait players out in free agency to get good deals. Todd Frazier signed for two years and $17 million, Eduardo Nunez received only $8 million in guarantees, Carlos Gomez just signed for $4 million, and Logan Morrison only received $6.5 million. Plenty of quality free agents remain, and the market isn’t looking robust. It certainly seems as though teams are winning and that the strategy of waiting has paid off.
Travis Sawchik found that the free agents who signed contracts during the early part of the current offseason ended up receiving about 5% less overall than their FanGraphs crowdsourced estimates predicted. In light of research by Max Rieper at Royals Review, that boded poorly for players. Rieper, who compared actual contract values to those estimated by FanGraphs crowdsource estimates over several years, found that players who sign early in the offseason typically fare much better (relative to the estimates) than those who sign later.
At first glance, it would appear that several prominent, recent free-agent signings seem to fly in the face of Rieper’s findings, though. As Ben Lindbergh mentioned in his recent post on the players’ share of revenue, Yu Darvish, Eric Hosmer, J.D. Martinez, all signed at or above their crowdsourced estimates. I would add the Brewers signing of Lorenzo Cain to that list, as well.
Is it possible that the waiting game hasn’t actually hurt free agents? Or is there something else going on here? With more data available, it might be time to revisit Rieper’s study with the current offseason included.
