Earlier this week, Salvador Perez and the Kansas City Royals agreed on a second contract extension. In terms of financial need or justification for the Royals, there weren’t any compelling reasons for the Royals to sign Perez to another extension when his previous contract kept Perez under control through the 2019 season. Even with no extensions, Perez would not have been a free agent until after this season. In his analysis of the deal, Jeff Sullivan focused on the human element of the deal and being fair to Perez. Ken Rosenthal wondered if this would start a trend and named a few other players who might benefit from teams deciding to be a bit more fair. Perez is certainly not the first player to sign a very team-friendly deal, but he is also not the first player to be awarded a second deal despite having a number of years still left on his first contract.

In Rosenthal’s piece, he acknowledges that Perez was a “special case,” noting that the Royals catcher had recorded just 158 plate appearances at the time he signed the contract. That lack of experience led to a very low guarantee and the three team options that would have prevented Perez from reaching free agency for another four seasons. While acknowledging both the lack of need and the recognition of fairness, Rosenthal suggested six other players who might fit the same bill as Perez, although perhaps on a smaller scale given their larger guarantees: Paul Goldschmidt, Anthony Rizzo, Jose Altuve, Chris Sale, Madison Bumgarner and Chris Archer.

On the whole, these types of extensions save massive amounts of money for teams, but we can take a look at the contracts Rosenthal discusses and compare them to Perez’s to see if they are actually close. The first few columns of the table below should be self-explanatory, but the last column, FA Surplus Value, might not be. To calculate the surplus value, I took current projections, applied standard aging curves, set the cost of a win at $8 million for this year along with 5% increases in years thereafter and compared the value of the projected production to the cost for free agent years only. For the players below, their arbitration salaries have also been at a discount, so if you want to include those values, feel free to add on another 20% or so (whichever number you feel like) to capture that discount as well.

Rosenthal did a very good job identifying the super-team-friendly contracts. Perez falls right in the middle of those contracts in terms of surplus value, but what makes his case different is the very low salary-level in relation to the other players — this, even if his options had been picked up. The top-four players on that list are massive bargains, but at least they will be paid around $10 million or more per year — double that of Perez. Altuve is in nearly the same boat as Perez in terms of salary, but he gave up just two years of free agency, which limits the surplus value.

Looking back through MLB Trade Rumors’ extension tracker, I identified players who were locked up to a second extension while still possessing multiple years on their first one. The idea: to find some sort of precedent for the Perez contract, or perhaps something closer to the situations of Sale, Bumgarner, Goldschmidt and Rizzo. Certain names come to mind immediately when considering players who’ve received a second extension while still playing on the first. Miguel Cabrera, for example. And Ryan Howard. These are classic cases of a team mistakenly extending players before they’d have to, but neither case is really similar to Perez’.

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Baseball has started, sort of, and it’s time to have a meetup. Don’t worry about the team projections, all of our teams are still in it, at least until April. Please come drink, rosterbate, and theorize with the following writers at OHSO Brewery in Scottsdale, Arizona on Friday, March 11th, at 6pm. Free appetizers for attendees!

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It all makes the Orioles look bad, which isn’t fair. It was supposed to be easy enough for the Orioles to sign both Yovani Gallardo and Dexter Fowler. Then, within a few days, the Gallardo talks nearly fell apart, and the Fowler talks did fall apart. Instead of the Orioles and Fowler having an agreement, it turns out Fowler wanted a one-year opt-out, which the Orioles wouldn’t give him. That’s a perfectly defensible stance, but here’s where we are now: Baltimore doesn’t have Dexter Fowler. Fowler has gone back to the Cubs, for a year and $13 million. It’s all been a pretty stunning turn of events, and the breakdown in the Baltimore talks has allowed the Cubs to answer the last big question they had.

For the Orioles, it’s a bad look, and it’s frustrating, because now they have to keep poking around to fill a hole they thought they’d fill. It’s probably somewhat bad for morale, and now you can likely expect the Orioles to get in contact with the Reds about Jay Bruce. It’s not the worst fallback in the world. Yet this is all really about the Cubs. The Cubs get to keep Fowler, if only for a year. It reduces the uncertainty for what’s pretty clearly a World Series favorite.

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Spring training is getting underway, which means while we aren’t yet into the regular season, we are into projection season. Depending on what you’ve been looking at, there’s been a lot of talk about the White Sox, and there’s been a lot of talk about the Royals. Those teams have received some somewhat controversial projections, but not everything is so up for debate. For example: it’s universally agreed the Cubs look really good, and it’s universally agreed the Phillies look really bad. These statements are practically givens.

The White Sox became a topic of conversation because of USA Today. The Royals are back in the spotlight because of Baseball Prospectus and PECOTA. This is FanGraphs, so let’s take a look at what’s being published on FanGraphs. Here’s our projected standings page, based on Steamer projections and the depth charts, and you see the Cubs projected for an MLB-best 94 wins, and the Phillies projected for an MLB-worst 66 wins. These projections won’t cause any arguments — the numbers agree with consensus opinion.

Projections, though, are midpoints, at least when you see them published. Ranges exist around them. Sometimes pretty big ranges. And both the Phillies and Cubs will employ major-league baseball players, who are elite talents when it comes to their craft. The Cubs will win a bunch of games, and the Phillies will win a bunch of games. What are the chances the Phillies win more games than the Cubs?

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With pitchers and catchers reporting soon, we just about have all the major free-agent signings wrapped up. It looks like Yovani Gallardo is about to sign with the Orioles, and there are rumors that Dexter Fowler could soon join him now that Baltimore has apparently decided to give up their first-round draft pick. With so many good outfielders available this winter, as the music stops, the available chairs for Fowler seem less desirable than we might have thought at the end of last season. Fowler’s defensive numbers have been pretty bad over the last few seasons, but his UZR figure was close to average in his only year with the Chicago Cubs. Determining change in skill from small sample size can be difficult, but it does not seem likely Fowler greatly improved his defense last season.

Defensive statistics are much-maligned outside of the analytic community, and even among those who use advanced statistics, there’s a degree of doubt regarding their utility. Much of the criticism stems from a misunderstanding about how to use defensive statistics given the larger sample size necessary to draw meaningful conclusions. Looking at three seasons worth of UZR can seem like going too far into the past, leading to rationalizations about short-term spikes in defensive numbers.

Over the last four seasons, Fowler has put up a UZR numbers in center field of -13.6, -1.7, -21.8, and last year’s -1.9 mark. Taken on the whole, it would be reasonable to conclude that Fowler is a below-average center fielder. It might be easy to look at the last three years, point to two that are pretty close to average, and call the -21.8 an outlier. This isn’t advisable, however, as doing so completely ignores a full year of data and merely cherrypicks the good seasons. The graph below shows two lines: yearly UZR for Fowler over the past five seasons, and a three-year average of UZR over the past five seasons, which is more representative of Fowler’s defense.

Using three years of data smooths Fowler’s numbers considerably. The inconsistency of the yearly numbers largely evaporates and places Fowler’s defense somewhere between six and 12 runs below average at center field over the past few years. That inconsistency carried over to his WAR numbers as well, as the graph below shows.

Instead of a 1.4 WAR season followed a 3.2 WAR season, we see a pair of 2.5 WAR seasons the last two years. Not surprising for the soon-to-be 30-year-old, ZiPS sees Fowler as a 2.4 WAR player heading into next season.

But what about the possibility that Fowler’s defensive improvements are real? It does happen. Jhonny Peralta made himself a much better shortstop later into his career — and improved positioning could have helped Fowler last season, as could getting out of the ballparks in Colorado and Houston. That narrative was getting pushed early last season and it does have some validity.

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You smell that? It’s baseball’s prospect-list season. The fresh top-100 lists — populated by new names as well as old ones — seem to be popping up each day. With the individual rankings coming out, some organization rankings are becoming available, as well. I have always regarded the organizational rankings as subjective — and, as a result, not 100% useful. Utilizing the methodology I introduced in my article on prospect evaluation from this year’s Hardball Times Annual, however, it’s possible to calculate a total value for every team’s farm system and remove the biases of subjectivity. In what follows, I’ve used that same process to rank all 30 of baseball’s farm systems by the surplus WAR they should generate.

I provide a detailed explanation of my methodology in the Annual article. To summarize it briefly, however, what I’ve done is to identify WAR equivalencies for the scouting grades produced by Baseball America in their annual Prospect Handbook. The grade-to-WAR conversion appears as follows.

Prospect Grade to WAR Conversion

Prospect Grade	Total WAR	Surplus WAR
80	25.0	18.5
75	18.0	13.0
70	11.0	9.0
65	8.5	6.0
60	4.7	3.0
55	2.5	1.5
50	1.1	0.5
45	0.4	0.0

To create the overall totals for this post, I used each team’s top-30 rankings per the most recent edition of Baseball America’ Prospect Handbook. Also accounting for those trades which have occurred since the BA rankings were locked down, I counted the number of 50 or higher-graded prospects (i.e. the sort which provide surplus value) in each system. The results follows.
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Major League Baseball is a profitable enterprise, and (not surprisingly) MLB owners tend to benefit from that profitability, generally through revenues directly related to operating those franchises. However, MLB owners have also profited from ventures only partially related to MLB ownership, as well. They’ve made money owning television stations that also happen to air the games of teams they own. Owners are also in the process of spinning off the non-baseball related arm of MLBAM for billions. Notably, MLB owners have begun capitalizing on another revenue stream: developing the land near their teams’ ballparks.

When the Atlanta Braves announced they were leaving a 20-year-old Atlanta-based stadium for a new one out in the suburbs of Cobb County, it took many by surprise. Cobb County made an appealling offer to the Braves, and one of the Braves’ promises was a $400 million mixed-used land development surrounding the stadium. While this has some likely benefits for Cobb County, it has the potential to be very beneficial for the Braves, as well — and it was one of their reasons for leaving Atlanta.

Bucking the trend of pro teams seeking stadiums and arenas closer to the city center, the Braves’ new facility will be part of a 60-acre development near Cobb Galleria mall. Plant compared it to new ballparks in Cincinnati, San Diego and Houston, as well as L.A. Live, which hosts the NBA’s Los Angeles Lakers and Clippers and the NHL’s Kings at Staples Center.

“With our current location, we couldn’t control that process,” Plant said. “This site allows us to do that.”

In Cincinnati, the Reds have their Hall of Fame across the street. In Houston, the Astros took over Union Station. However, the first major attempt to control an entire area of land around the stadium had mixed results. In San Diego, real estate developer JMI, owned by John Moores, the previous owner of the Padres before a messy divorce forced the sale of the team, built up the area around the park, mainly with housing after original plans for more office buildings had to be scrapped due to economic conditions. The area is still in flux, as it was also a potential site for a new stadium for the San Diego Chargers.

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If you’ve recently spent time with other humans, it’s likely that you noticed that they tend to be overconfident about how well they understand the world around them. Think of all of the people you know who have tried to weasel their way out of admitting they were wrong even when presented with strong evidence that they had misinterpreted a situation. Humans are bold and unapologetic in their declarations and do not like it when you point out that they’ve made a serious error.

It’s hard to criticize people for that when it seems to be a pretty fundamental aspect of the species. It’s not good or bad, it simply is. But that doesn’t mean we can’t enjoy little moments when someone makes a compelling argument and then the world totally destroys their hard work by changing around them.

For example, two political scientists once wrote a book called Congress’ Permanent Minority? Republicans in the U.S. House which was the first major scholarly account of how a minority party operates when it expects to be in the minority for the foreseeable future. It’s a well-researched book and was well reviewed when it came out. Unfortunately for the authors, it came out in January of 1994, just 11 months before the Republicans would win control of the House for the first time in 40 years. It was a perfectly fine analysis, it was just totally detached from the reality of American politics almost immediately.

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Yesterday, lead prospect analyst Dan Farnsworth published his excellently in-depth prospect list for the Chicago Cubs. In this companion piece, I look at that same Chicago farm system through the lens of my KATOH projection system. There’s way more to prospect evaluation than just the stats, so if you haven’t already, I highly recommend you read Dan’s piece in addition to this one. KATOH has no idea how hard a pitcher throws, how good a hitter’s bat speed is, or what a player’s makeup is like. So it’s liable to miss big on players whose tools don’t line up with their performances. However, when paired with more scouting-based analyses, KATOH’s objectivity can be useful in identifying talented players who might be overlooked by the industry consensus or highly-touted prospects who might be over-hyped.

Below, I’ve grouped prospects into three groups: those who are forecast for two or more wins through their age-28 seasons, those who receive a projection of at between 1.0 and 2.0 WAR though their age-28 seasons, and then any residual players who received Future Value (FV) grades of 45 or higher from Dan. Note that I generated forecasts only for players who accrued at least 200 plate appearances or batters faced last season. Also note that the projections for players over a relatively small sample are less reliable, especially when those samples came in the low minors.

1. Albert Almora, OF (Profile)

KATOH Projection Through Age 28 (2015 stats): 12.7 WAR
KATOH Projection Through Age 28 (2014 stats): 3.3 WAR
Dan’s Grade: 50 FV

After a down 2014 campaign, Almora re-established his prospect status with a strong showing in Double-A last year. The toolsy outfielder made loads of contact, and paired it with a respectable amount of power and speed. The end result was a .272/.327/.400 triple slash, which was eons better than his .234/.250/.335 showing from his pit-stop at the same level last year. Read the rest of this entry »

Other clubs: Braves, Diamondbacks, Orioles, Red Sox.

Cubs fans had to be thrilled with how the 2015 season played out, as many of the top prospects in their system decided they didn’t need an adjustment period and sprinted out of the gates. Looking at the number of young players contributing to the playoff run, you could assume the minor league pipeline would take a step back after graduating so many high-level players. Fortunately for Cubs fans, there is still a wealth of both high-floor and high-upside talent under team control.

There is a strong mix of pitching and hitting assets. Most of the top offensive reinforcements will be knocking on the big league door within a year or two, while the higher-ceiling pitchers may take another year to show up. The overall quantity of guys who were in the conversation for this list was itself an impressive compliment to the Cubs’ scouting and player development efforts.

For the hitters, I’m a little higher on Billy McKinney and Dan Vogelbach and lower on Willson Contreras and Jeimer Candelario than you might see elsewhere. None of them grade out poorly in my opinion, but it may be a different ranking than even some Cubs officials would prefer. Pitchers Dylan Cease and Jake Stinnett are ranked favorably, especially in comparison to CJ Edwards and Pierce Johnson for reasons that are explained in each respective player’s report.

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