After a quiet 2020 offseason, and in advance of the ongoing lockout, the early 2021-22 free agency period saw a sudden burst of activity. Teams shelled out more than $1.5 billion in new contracts, a record-breaking pace. Not only did they act earlier in the winter than we’re used to, they also spent far more than last offseason. Is free agency fixed? We’ll need to dive into the data to find out.
See, “how much money was spent on free agents” is an inexact measure of teams’ spending appetites. Imagine an offseason where, due to strategic contract extensions and a wildly immoral use of cloning technology, the only players on the free agent market are 37 versions of Alcides Escobar and 25 copies of Jordan Lyles. Free agency spending would crater, and it would be hard to blame teams for it. It’s not as though you have to give the best player on the market a $300 million deal; contracts are, obviously enough, affected by the caliber of player signing the contract.
Rather than come up with some new form of analysis, I decided to use a methodology advanced by former FanGraphs writer Craig Edwards. The idea is straightforward: take players projected for 2 or more WAR by Steamer in the upcoming season, apply a naive adjustment for aging, and project how much WAR each free agent will accrue over the life of their contract. Like Craig, I applied some discounting for playing time projections. That lets us create expected $/WAR numbers for each year’s free agency class:
$/WAR, 2+ Projected WAR Players
Offseason |
2+Proj WAR |
2018 |
$9.3 M/WAR |
2019 |
$7.8 M/WAR |
2020 |
$9.5 M/WAR |
2021 |
$5.5 M/WAR |
2022 |
$8.5 M/WAR |
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