The Cost of a Win in Free Agency in 2020
After a few cold, dreary, quiet hot stove seasons, free agency picked up its pace this winter. While Manny Machado and Bryce Harper got $300 million deals last offseason, it took until nearly spring to get those contracts finalized. This offseason, we’ve seen Gerrit Cole, Stephen Strasburg, Anthony Rendon, and Zack Wheeler sign for more than $100 million, and with the new year just eight days old, only a handful of decent free agents remain. While large deals and total spending near $2 billion have captivated us this offseason, it’s worth exploring what has made this winter different from years past. Is it just timing? Is it this class of free agents? Have teams changed their spending habits? Is the cost of a win still linear? A useful tool when examining those issues it to try to determine how much teams are paying for a win above replacement in the free agent market.
While putting dollar figures on players isn’t the most feel-good task, it’s helpful for framing conversations about costs in free agency. From the front office perspective, it helps to determine which free agents are good values and a worthy investment of resources compared to other free agents and veteran players. It also helps frame the value of younger players who have yet to reach the full six years of service time necessary to hit the market by showing the alternative cost to obtaining similar production. On the player side, these types of valuations tend to show how underpaid players are prior to reaching free agency, given the low cost of their tremendous on-field value compared to similarly productive free agents.
There are a variety of ways to go about determining how much teams are paying per win on the free agent market. Matt Swartz, having found that projections tended to overweight free agent player production and playing time when considered in the aggregate, instead considered actual production of past results to determine how much teams were paying for a win. He also used all players with at least six years of service time to account for players aging over the course of a contract. He acknowledged that there might be issues with including players on extensions. To be clear, Swartz wasn’t wrong about the way he formulated his dollars per win, but another approach can be helpful, and, if we are to look at the current offseason, necessary. Read the rest of this entry »
Kiley McDaniel
