On Tuesday, Liam Hendriks signed a contract with the Chicago White Sox that will pay him $54 million. Craig Edwards covered the signing, and Tony Wolfe took a look at the South Siders’ new bullpen, which is now one of the best in baseball. But there was something confusing about Hendriks’ contract. It will pay him $54 million, but how many years he’ll play to earn that money isn’t yet set.

A quick overview: over the first three years of his deal, Hendriks will receive $39 million. After that third year, the White Sox have a team option to bring him back for a fourth year with a $15 million salary. If they don’t want to pay him for that year, they can pay him a buyout instead, a common structure in contracts with team options. Here’s the rub: that buyout is for $15 million, the same amount as the option salary. It’s deferred over multiple years, so it isn’t exactly the same, but Hendriks will get $54 million in cash, and he’ll do so whether he plays for the Sox for three or four years.

Why design such a strange tax structure? It’s in pursuit of one of the oldest American pastimes — tax avoidance. Let’s quickly walk through how Hendriks’ contract works in Chicago’s favor, and take a quick jaunt through other contract structures while we’re at it.

When the league came up with the CBT, they put some thought into working around loopholes. Consider, for example, a team who has plenty of room under the tax level in 2021 but projects to go near it in 2022. Now imagine that they sign Trevor Bauer to a two-year, $80 million deal. If they paid him $40 million in each year, it would look like this:

Assuming a tax threshold of $210 million, they’d be $30 million under the line in ‘21 and $20 million over in ‘22. Why not, then, pay Bauer $60 million in year one and $20 million the next year?

Why not? Because the league doesn’t fall for that nonsense. For the purposes of the CBT, salaries are spread out evenly across the term of the deal. Design wild roller-coasters all you want; a two-year deal for $80 million will count for $40 million each year, no matter when the actual checks go out.

Next, let’s consider a different way around the tax, and a different way the league closed that loophole. Consider a team going for it this year. They’re right up against the tax in this hypothetical world, and they’d prefer not to pay it. Instead, they offer a different deal, this time to a hypothetical closer. In year one, he’ll receive $10 million. Year two is a team option with a salary of $30 million. Should the team decline the option, they’ll pay a $10 million buyout.

One of two things will happen: either our closer will make $40 million for two years of service, or he’ll make $20 million for one year. That feels like a reasonable contract for both sides — and if the league didn’t look too hard at it, they might give the team a tax number of only $10 million in year one.

Let’s make it more absurd, though. What about a one-year deal for $5 million, with a team option for a second year at $60 million and a $15 million buyout. Now the team will certainly pay the buyout. Our pitcher still gets his $20 million over one year. Would anyone think that’s really only a $5 million salary in year one, though?

The league doesn’t. Buyouts of team options are treated as part of the total salary paid in guaranteed years. What does that mean? Let’s take a look at Ronald Acuña Jr.’s contract to explain it. His contract looks like this:

That’s $90 million over eight years. After that, there are two team options, the second of which we’ll ignore (given that it only kicks in if the team exercises the first one, CBT math ignores it). The first team option is for $17 million, with a $10 million buyout. That brings the total guaranteed money in the deal to $100 million over eight years — $90 million in salary plus the buyout. What’s Acuña’s CBT number in each year? $12.5 million, or $100 million split evenly over eight years.

Should the Braves exercise Acuña’s option, they’ll pay him $17 million in 2027, but $10 million of that will already have counted against their tax numbers in previous years. How does that hit the salary cap? The league has left it purposely ambiguous, but one interpretation is that the tax number will be lower to account for that previous hit. In Acuña’s case, he has another $10 million buyout the next year, so it’s hardly a lock, but we’re just using him as an example. Again, we don’t know exactly how the league accounts for buyouts — but in my mind, there’s a decent chance that having the cost of the buyout on previous years’ CBT numbers decreases the number the league uses in the option year.

With that explanation out of the way, let’s get back to Hendriks. He’s due $39 million over three years, an average of $13 million per year. After that, there’s his buyout, which also counts against the tax. It’s for $15 million deferred over time. The league discounts deferrals slightly, and without getting into the exact math there, let’s assume that they treat Hendriks’ buyout as worth $13 million in present-day terms. That means he’s due $52 million over three years for the purposes of the tax.

Should he remain with the team for a fourth year, the deal has only $2 million in “new money” — the difference in value between a deferred and present-day $15 million. That makes for big tax numbers in the first three years — roughly $17 million per year — and a minuscule $2 million hit in the fourth year. Again, I’m not certain that this is how options are treated — but it’s a reasonable guess, at the very least, and one of the best reasons I can see for structuring a contract in such a strange way.

Why would a team want to do this? The Sox are no dummies. They’re nowhere near the CBT threshold in 2021 — they check in around $160 million even after Hendriks’ contract. Will they be so far below the threshold in three years? It’s far less clear! Lucas Giolito will need a new contract by then. Nick Madrigal, Dylan Cease, Michael Kopech, and Codi Heuer, just to name a few, will be in their arbitration years. If they’re planning on keeping Lance Lynn, he’ll surely earn more than this year’s $9.3 million salary.

By taking a bigger tax hit now, the White Sox are setting themselves up to avoid paying taxes in the future. Are they actually considering declining the option? Almost certainly not. Why would they? Short of Hendriks being out for the season with an injury, they’ll keep him, because the difference between $15 million now and $15 million over 10 years simply isn’t much in the grand scope of things.

One thing worth monitoring: I’m not actually sure if the league is going to allow this nonsense. I feel reasonably confident that they wouldn’t have allowed a $15 million team option with a $15 million buyout if there were no deferrals involved. Even including that fig leaf, I don’t think there’s much confusion about what’s going on here. The league can treat vesting options that are very likely to be triggered as guaranteed, and it wouldn’t shock me if they did that here. For now, though, it sounds like Hendriks’ contract counts as $54 million over three years in the eyes of the tax man.

In other words, Hendriks signed a four-year, $54 million dollar contract this week. It won’t be reported the same way everywhere — it’s a complex contract, after all. At the end of the day, however, the White Sox wanted to pay Hendriks $54 million to secure his services for the next four years. They did just that — with a little financial chicanery thrown in for good measure.

The White Sox don’t need an elite bullpen to compete. They had the most valuable position player group in baseball in 2020, and that was without two stars, Yoán Moncada and Luis Robert, playing to their full potential. They also have a rotation that boasts two aces and a fair amount of rotation depth. Give them last year’s Phillies bullpen, and they’d still likely be able to fight for a playoff spot, especially in their division. Fit them with an average ‘pen, and their postseason expectations begin to look like more of a certainty.

Much to the chagrin of the other AL Central teams, Chicago’s bullpen doesn’t look like it’s going to be average, and it definitely doesn’t look like it will be awful. That much was made clear when the White Sox signed Liam Hendriks — the best reliever in this year’s free-agent class and at worst a top-three-or-four reliever in baseball — on Monday. Since the start of 2019, he has been nearly two wins more valuable than any other relief arm in baseball, posting a 1.79 ERA and 1.70 FIP in 110.1 innings. Our Depth Charts have Hendriks forecast for 1.6 WAR in 2021, tying him with Aroldis Chapman and Edwin Diaz for the highest relief WAR projection in baseball. With that considerable boost, the White Sox’ bullpen now projects to be the second-best in the majors, albeit with loads of free-agent talent still unsigned.

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While there were plenty of good options in this year’s free-agent reliever class, with Trevor May, Brad Hand, Archie Bradley, and Blake Treinen representing the near-top tier, there was just one ace available: Liam Hendriks. That elite reliever is now off the board, with the White Sox continuing their aggressive offseason by signing the former A’s closer to a four-year deal worth $54 million. Yahoo Sports’ Tim Brown was the first with the news of the signing, and ESPN’s Jeff Passan was the first to report the unusual structure of the deal: Hendriks will be paid $39 million in the first three years, with the remaining $15 million coming either as a fourth-year team option or as a deferred buyout if the option is declined.

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The following article is part of Jay Jaffe’s ongoing look at the candidates on the BBWAA 2021 Hall of Fame ballot. Originally written for the 2013 election at SI.com, it has been updated to reflect recent voting results as well as additional research. For a detailed introduction to this year’s ballot, and other candidates in the series, use the tool above; an introduction to JAWS can be found here. For a tentative schedule and a chance to fill out a Hall of Fame ballot for our crowdsourcing project, see here. All WAR figures refer to the Baseball-Reference version unless otherwise indicated.

Like Mark McGwire, his rival in the great 1998 home run chase, Sammy Sosa was hailed at the height of his popularity as a hero, a Sports Illustrated Sportsman of the Year, and a great international ambassador for baseball. In the same year that McGwire set a new single-season record with 70 home runs, Sosa hit 66 and took home the National League MVP award. Three times in a four-year stretch from 1998 to 2001, he surpassed Roger Maris‘ previously unbreakable mark of 61 homers, and he hit more homers over a five- or 10-year stretch than any player in history. In 2007, he became just the fifth player to reach the 600-home-run milestone after Babe Ruth, Willie Mays, Hank Aaron, and Barry Bonds.

As with McGwire, the meaning of Sosa’s home runs changed once baseball began to crack down on performance-enhancing drugs, with suspicions mounting about his achievements. He was called to testify before Congress in 2005, along with McGwire, Rafael Palmeiro, and several other players. Sosa denied using PEDs, but while he never tested positive once Major League Baseball began instituting penalties for usage, The New York Times reported in 2009 that he was one of more than 100 players who had done so during the supposedly anonymous survey tests six years prior. Read the rest of this entry »

Below is an analysis of the prospects in the farm system of the Chicago White Sox. Scouting reports were compiled with information provided by industry sources as well as my own observations. As there was no minor league season in 2020, there are some instances where no new information was gleaned about a player. Players whose write-ups have not been altered begin by telling you so. For the others, the blurb ends with an indication of where the player played in 2020, which in turn likely informed the changes to their report. As always, I’ve leaned more heavily on sources from outside the org than within for reasons of objectivity. Because outside scouts were not allowed at the alternate sites, I’ve primarily focused on data from there. Lastly, in effort to more clearly indicate relievers’ anticipated roles, you’ll see two reliever designations, both in lists and on The Board: MIRP, or multi-inning relief pitcher, and SIRP, or single-inning relief pitcher.

For more information on the 20-80 scouting scale by which all of our prospect content is governed, you can click here. For further explanation of Future Value’s merits and drawbacks, read Future Value.

All of the numbered prospects here also appear on The Board, a resource the site offers featuring sortable scouting information for every organization. It can be found here.

Editor’s Note: Yoelqui Cespedes and Norge Vera were added to this list after they agreed to deals with the White Sox on January 15.

It doesn’t feel like hyperbole to say one of the most important days in the recent history of the White Sox was Dec. 7, 2016, when they traded Adam Eaton to Washington in return for Lucas Giolito, Reynaldo López, and Dane Dunning. Giolito is now the staff ace and one of the best pitchers in the American League, having compiled 7.1 WAR over the past two seasons. López has been less successful as a back-of-the-rotation arm who hovered just below league average from 2018 to ’19 before falling below replacement level last year, but he’s still provided 4.1 WAR over the last three seasons. Dunning was just shipped out to acquire another right-handed ace in Lance Lynn from the Rangers. A lot of wins can already be credited to the Eaton deal, and more will be added to the ledger by the time all is said and done.

Perhaps it’s cosmically fair, then, that Eaton will now reap the rewards of the roster he played such a key role in rebuilding. NBC Sports Chicago’s Chuck Garfien reported on Tuesday that Eaton will be rejoining the White Sox on a one-year deal, with a team option in place for 2022. The signing comes four years and one day after the team traded him to Washington.

White Sox in agreement with free agent outfielder Adam Eaton, source tells @NBCSChicago. It's a 1-year, $7 million deal with a second year team option for $8.5 million.

— Chuck Garfien (@ChuckGarfien) December 8, 2020

Chicago first acquired Eaton after the 2013 season, in a three-team, six-player deal with the Diamondbacks and Angels that also established new homes for Mark Trumbo, Hector Santiago and the late Tyler Skaggs. Eaton, a former 19th-round pick out of the University of Miami (Ohio), immediately broke out in Chicago’s outfield, compiling 13.5 WAR over three seasons thanks to a .290/.362/.422 line (119 wRC+) and sometimes elite defense. His best season — a 2016 that included a 117 wRC+, 26 defensive runs saved in the outfield, and 5.9 WAR — earned him down-ballot MVP votes, but it came on a White Sox team that finished 78–84, spinning its tires despite the presence of stars like Jose Quintana and Chris Sale. Chicago hit the reset button, and with Eaton coming off a career year and having four years left on his owner-friendly contract extension, he became quite a valuable trade chip.

Eaton seemed like a good fit for a championship-ready Nationals squad with holes to fill in its outfield, but his honeymoon with Washington was short-lived. His 2017 season lasted just 23 games before he tore his ACL running out a ground ball, and he missed two more months in ’18 with bone bruises on his ankle. He finally turned in a full season for the title-winning 2019 Nationals and compiled 2.3 WAR with a 107 wRC+, only to return as a shell of himself in 2020, hitting just .226/.285/.384 (75 wRC+) with four homers in 41 games. He was half a win below replacement level, and Washington declined his $10.5 million team option after the season.

Eaton was able to recoup most of that with his one-year deal in Chicago, which was in need of a starting right fielder after non-tendering Nomar Mazara. Filling that spot in the order was seen as a chance for the White Sox to aim high — George Springer and Marcell Ozuna are potentially transformative bats at the top of the market, while other options like Michael Brantley, Joc Pederson, and Jackie Bradley Jr. rank in the top half of our Top 50 Free Agents list. Craig Edwards’ most recent payroll analysis has the White Sox spending much less than their market size warrants, so the resources to add a big name should be available.

Instead, Chicago opted for a 32-year-old with a modest power ceiling and waning defensive skills coming off the worst season of his career. Eaton had various problems in 2020. He raised his swing rate nearly seven points to the highest mark of his career, resulting in a walk rate of just 6.8%, more than two points below his career average. All of that swinging resulted in a lot of contact — he was in the 91st percentile of baseball in whiff rate — but he still posted his highest strikeout rate since 2015.

When Eaton put the ball in play, he also couldn’t achieve the same luck he has in the past. His ability to leg out bunt and infield singles declined, and a career .335 BABIP plummeted to a .260 mark in 2020. Because Eaton doesn’t hit for much power, his offensive value is sustained by his ability to convert line drives and grounders into singles and to work an above-average rate of walks. When he can’t do that and doesn’t have even average defensive numbers to bolster his case, you’re probably better off calling up someone from Triple-A to take his spot in the lineup.

The White Sox clearly don’t think Eaton has reached that point, likely for a few reasons. He just turned 32 this week, an age that typically means you’re past your prime but not one where you expect production to tank completely. Despite the knee and ankle injuries, Eaton can still run pretty well — he was in the 74th percentile of Statcast’s sprint speed metric this year and up to the 81st percentile the year before, which is pretty close to where he was when he was having his best seasons on defense as well as on the bases. He should avoid challenging Luis Robert to pre-game foot races, but his legs and instincts should still help add value.

His raw tools appear to be holding up in other areas as well. Eaton’s exit velocity in 2020 was down from the previous year, but only by a single mile per hour. He isn’t having trouble catching up to fastballs, as his whiff rate against the hard stuff actually just hit its lowest point since 2014. His line-drive rate has remained steady, as has his distribution of where he’s hitting the ball.

The White Sox, then, are betting that Eaton’s problems are easier to solve than it may appear. If he still runs well, perhaps fixing his defense — where he’s dropped from +27 DRS in 980.1 innings in right in 2016 to -6 DRS in 335 innings in 2020 — could be solved with better positioning, or other subtle tweaks. If his contact skills are still in place, maybe you can salvage his K/BB rates by nudging him back toward his more selective approach of the past. Perhaps there’s a 3-WAR player still here, and it’s just going to take a little elbow grease to bring him back out. The idea of achieving that while reuniting with a former fan favorite might make all that work seem worth it.

The cruelty of 2020 is unending. Sunday might have been the day that Dick Allen was finally elected to the Hall of Fame, if not for the coronavirus pandemic that forced the Hall’s era-based committees to postpone their vote. Instead, on Monday, we learned that Allen had died at 78 years old after battling cancer.

Allen, who made seven All-Star teams and won the NL Rookie of the Year and AL Most Valuable Player awards during his 15-year career (1963–77), was one of the heaviest hitters in baseball history. Wielding bats weighing 40 ounces or more, Allen led the league in home runs and on-base percentage twice apiece and in slugging percentage three times, but that’s just the tip of the iceberg. In each of the 10 years that he qualified for the batting title, he ranked among the league’s 10 most potent hitters, leading in OPS+ three times, finishing second twice, and placing among the top 10 five more times. His career 156 OPS+ matches those of Willie Mays and Frank Thomas, tied for 14th among players with at least 7,000 plate appearances, but Mays (12,496 PA) and Thomas (10,075 PA) played for far longer than Allen (7,315 PA). The comparative brevity of his career left him with modest hit and home run totals (1,848 of the former, 351 of the latter) that made it easier to downplay the impact of his raw batting line (.292/.378/.534), compiled during a pitcher-friendly era. Hall of Fame voters of all flavors bypassed him more often than not.

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Looking at the pitchers in the RosterResource Free Agent Tracker and sorting by projected WAR, we see 10 starters with a projection of at least two wins. The group is topped by Trevor Bauer and his 3.8 WAR projection and $100 million contract aspirations. Of the next nine pitchers, six have already signed contracts for next season. Two, Corey Kluber and James Paxton, come with significant injury concerns. That means that for teams in the market for solid production from a starting pitcher next season either need to pony up for Bauer, go after Masahiro Tanaka and his three projected wins, or look elsewhere. The White Sox opted for that last option yesterday when they traded for Lance Lynn, with Joel Sherman, Jeff Passan and Ken Rosenthal reporting on the players involved. Here’s the deal:

White Sox Receive:

• Lance Lynn

Rangers Receive:

• RHP Dane Dunning
• LHP Avery Weems

No matter the metric you use, Lynn has been one of the 10 best pitchers in baseball over the last two years. His 8.3 WAR here at FanGraphs puts him fifth while his 8.6 RA9-WAR is sixth. He’s second at Baseball-Reference with 9.8 WAR. He followed up a fifth-place finish in the 2019 AL Cy Young voting with a sixth-place spot this season. For those more inclined to traditional stats, he’s first in the majors in innings and sixth in strikeouts. For those using Statcast, his xwOBA over the last two seasons is .285 and ranks 15th among the 108 pitchers with at least 2,500 pitches thrown, right behind Walker Buehler, Hyun Jin Ryu, Mike Clevinger, and Charlie Morton, and just ahead of Noah Syndergaard, Shane Bieber, Zack Greinke, Clayton Kershaw, and Yu Darvish. Factoring in innings easily pushes Lynn into the top 10, if not the top five, of pitchers over the last two seasons. Read the rest of this entry »

The following article is part of Jay Jaffe’s ongoing look at the candidates on the BBWAA 2021 Hall of Fame ballot. For a detailed introduction to this year’s ballot, and other candidates in the series, use the tool above; an introduction to JAWS can be found here. For a tentative schedule and a chance to fill out a Hall of Fame ballot for our crowdsourcing project, see here. All WAR figures refer to the Baseball-Reference version unless otherwise indicated.

At a moment when baseball is so obsessed with velocity, it’s remarkable to remember how recently it was that a pitcher could thrive, year in and year out, despite averaging in the 85-87 mph range with his fastball. Yet thats exactly what Mark Buehrle did over the course of his 16-year career. Listed at 6-foot-2 and 240 pounds, the burly Buehrle was the epitome of the crafty lefty, an ultra-durable workhorse who didn’t dominate but who worked quickly, used a variety of pitches — four-seamer, sinker, cutter, curve, changeup — moving a variety of directions to pound the strike zone, and relied on his fielders to make the plays behind him. From 2001-14, he annually reached the 30-start and 200-inning plateaus, and he barely missed on the latter front in his final season.

August Fagerstrom summed up Buehrle so well in his 2016 appreciation that I can’t resist sharing a good chunk:

The way Buehrle succeeded was unique, of course. He got his ground balls, but he wasn’t the best at getting ground balls. He limited walks, but he wasn’t the best a limiting walks. He generated soft contact, but he wasn’t the best at generating soft contact. Buehrle simply avoided damage with his sub-90 mph fastball by throwing strikes while simultaneously avoiding the middle of the plate:

That’s Buehrle’s entire career during the PITCHf/x era, and it’s something of a remarkable graphic. You see Buehrle living on the first-base edge of the zone, making sure to keep his pitches low, while also being able to spot the same pitch on the opposite side of the zone, for the most part avoiding the heart of the plate. Buehrle’s retained the ability to pitch this way until the end; just last year [2015], he led all of baseball in the percentage of pitches located on the horizontal edges of the plate.

Drafted and developed by the White Sox — practically plucked from obscurity, at that — Buehrle spent 12 of his 16 seasons on the South Side, making four All-Star teams and helping Chicago to three postseason appearances, including its 2005 World Series win, which broke the franchise’s 88-year championship drought. While with the White Sox, he became just the second pitcher in franchise history to throw multiple no-hitters, first doing so in 2007 against the Rangers and then adding a perfect game in 2009 against the Rays. After his time in Chicago, he spent a sour season with the newly-rebranded Miami Marlins, and when that predictably melted down spent three years with the Blue Jays, helping them reach the playoffs for the first time in 22 years.

Though Buehrle reached the 200-win plateau in his final season, he was just 36 years old when he hung up his spikes, preventing him from more fully padding his counting stats or framing his case for Cooperstown in the best light. A closer look suggests that beyond the superficial numbers, while he’s the equal or better of several enshrined pitchers according to WAR and JAWS, he’s far off the standards, and doesn’t have the peripheral collection of accomplishments to bolster his candidacy. Like Tim Hudson, he may receive a smattering of support on a ballot that’s hardly crowded, but his candidacy isn’t likely to lack staying power. Read the rest of this entry »

After having typically appeared in the hallowed pages of Baseball Think Factory, Dan Szymborski’s ZiPS projections have now been released at FanGraphs for nine years. The exercise continues this offseason. Below are the projections for the Chicago White Sox.

Batters

The White Sox entered 2020 projected slightly behind the Indians and Twins, needing some breakouts to take the next step. And that’s largely what they did. A miserable stretch to end the season that likely cost him the AL Rookie of the Year award aside, Luis Robert met reasonable expectations with his bat and more than exceeded them defensively. B.J. Upton may not blow anyone away for his top comp, but the next one on the list is Bernie Williams, who didn’t divebomb in his late 20s. And while I’m still not wild about his desire to play the field, Eloy Jiménez hit like he needed to this season and he’s just a skosh of offense plus a change of position away from being star-level. He could very easily get there anyway; his 80th percentile projection is 3.8 WAR and a 151 OPS+.

Tim Anderson is a tricky player for a projection system to deal with. The fundamentals say that he should be one of the top BABIP hitters in baseball, but there’s a difference between that threshold and the .395 he put up across 2019 and ’20. That’s a real high-wire act and ZiPS isn’t ready to go 20 points further than Ty Cobb’s all-time mark, the best in baseball since 1901. (Amusingly, if you set the threshold since 1901 at just 1000 PA, Jorge Alfaro is the all-time leader.) Anderson has crept up to a .347 BABIP projection, but he’ll have to keep defying the baseball gods to push any further in ZiPS. Read the rest of this entry »