Pettitte Returns

Earlier this offseason I penned a couple of posts discussing the similarities and differences of both Andy Pettitte and Derek Lowe. At those stages, both pitchers were being heavily pursued by the Yankees and it seemed more than likely that only one of them would don pinstripes. Many were calling for Lowe to join a “super-rotation” already featuring CC Sabathia, Chien-Ming Wang, A.J. Burnett, and Joba Chamberlain. A few commenters aptly asked what the big difference was between Lowe and Pettitte.

In fact, some outright claimed that Pettitte was the better decision because a) his stats and projection were not unsimilar to those of Lowe, and b) Pettitte would only require a 1-yr deal. Lowe eventually signed a 4-yr/$60 mil deal with the Braves that came very close to properly valuing his projected contributions.

Over the last three seasons, Lowe has averaged +4.4 wins, with Pettitte at +4.2. Factoring in a bit of decline, both appear to be capable of 3.6-4.0 wins next season. At +3.8 wins, Pettitte’s fair market value is $17.1 mil. At +3.4, $15.3 mil. And, at +2.8, $12.6. Why those numbers? Well, Pettitte signed yesterday for $5.5 mil guaranteed with incentives potentially bumping the deal up to $12 mil. Those different win calculations were examples of my own thinking out loud to see how the Yankees are valuing his contributions.

I would venture a guess that the incentives are very easily reachable for someone with Pettitte’s track record. Otherwise, I’m sure he would have worked harder to increase the guaranteed portion of the contract. The Yankees are adding someone with similar win value to that of Lowe, for one year, and a lower average annual value. And, they are apparently paying a +3.7 or so win player as a +2.6 win player, assuming the incentives kick in.

Many are claiming that Pettitte is the “fifth” starter. Well, for all intents and purposes, that is one extremely good fifth starter given his likely #2 or #3 spot on 70% of the remaining teams out there. His signing isn’t blocking anyone outside of, say, Phil Hughes, but perhaps the team feels he needs another year split between the bullpen and rotation before he is deemed ready. Either way, Pettitte’s contract is up after this year, so the roadblock will go away. Overall, a great contract for the Yankees. Many people underestimate how effective Pettitte can be.