Archive for Free Agency

It would be fair to label me a skeptic of Dexter Fowler’s defense skills. Despite recording basically average fielding numbers over his two years with the Cubs, Fowler had graded out as a distinctly below-average center fielder in every season of his career before joining Chicago ahead of the 2015 season. In each of the past two years his name has appeared in my early-season defensive-outlier posts, and before last season, I wrote an entire piece wondering if Fowler had actually improved as a defender or if he had merely benefited from better positioning.

Of course, even if the pre-Chicago version of Fowler is the real one, he actually still profiles as a decent player. He has a fantastic walk rate, has exhibited average power as a major leaguer, makes good contact — and, since leaving hitter-friendly Coors Field, has managed to produce a 121 wRC+, well above league average. Dexter Fowler the Hitter and Dexter Fowler the Fielder present two different points from which to begin an analysis of his future value. Let’s take a look at both.

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Back in 2008, after a half-decade of great hitting, David Ortiz slumped a bit, recording “only” a 124 wRC+. At 32, it was fair to expect some decline in performance. An offensive line 24% better than league average — as opposed to the 45-75% he’d been sustaining — seemed like a reasonable indicator of that decline. The next season, Ortiz slumped even more, posting just a 100 wRC+, essentially becoming a replacement-level player in the process. It made sense to wonder if he were finished. He wasn’t, of course. Ortiz proceeded to put up a 148 wRC+ over the next seven years, retiring after this past year following his age-40 season.

At 36, free agent Jose Bautista is a few years older than Ortiz was back in 2008, but similar questions apply. From 2010 to 2015, the former Jays outfielder put up a 156 wRC+, establishing himself as one of the best hitters in the game. He entered spring training this year thinking big in free agency, hoping for a contract well above $100 million. Following his 2016 season, that seems less likely. Bautista produced “only” a 122 wRC+ — and, for the first time during his tenure with the Blue Jays, Bautista was a below average player, putting up just a 1.4 WAR.

Despite a disappointing season at the plate, though — and questions about his arm holding up in the outfield — the projections expect a rebound for Bautista. Our Depth Chart forecast calls for a 128 wRC+ and 2.8 WAR from Baustita, which would still make him a valuable player next season.

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The title of this post serves is a warning, but not an absolute one. There’s a price at which just about any player becomes palatable. If Edwin Encarnacion were available to a team for just $1 this offseason, that team should sign him. For a number of reasons, Edwin Encarnacion will not be available for $1 this offseason. For a number of reasons, Edwin Encarnacion is going to earn much more than that. For a number of reasons, he’s likely to be overpaid for the services he’ll render.

Encarnacion, 33, just finished a season in which he hit 42 home runs and produced four wins above replacement. That matches very well with his last five seasons, during which he has averaged 39 homers and four wins above replacement. A standard decline from that level of production should make Encarnacion a very valuable player in this year’s free-agent class, but there are major warning signs.

In his piece on free-agent landmines, Dave Cameron wrote that Encarnacion was unlikely to be worth $100 million ($90 million in salary plus the value of the draft pick) unless he defies the aging process. How do we estimate Encarnacion’s worth? A couple ways, actually.

Let’s begin with a simple way — namely, by applying a standard aging curve to Encarnacion’s current 2017 projection. Encarnacion has been a steady four-win player for half a decade. If we were to see some decline, we might expect him to produce just a 3.5 WAR next season. Our current projections for Encarnacion estimate that he’ll record only a 2.3 WAR next season, however.

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While Yoenis Cespedes appears headed for the biggest free-agent contract this winter, he doesn’t enter the offseason with the distinction of having recorded the best 2016 campaign of all the market’s remaining free agents. That would be Justin Turner, actually, with a 5.6 WAR. In terms of probable outcomes for next season, Turner has Cespedes beat there, too, with a 3.6 projected WAR for next year (to Cespedes’ 3.0).

So Turner, despite having produced the better 2016 season and despite possessing the better 2017 projection, is likely to receive less money than Cespedes. Turner’s a year older, which might account for some of the difference, but age is also baked into the aforementioned projections. Ultimately, Turner could be a bargain. Even with bargains, though, there remains some risk.

Dave Cameron, in his annual Free Agent Bargains piece, makes the case for Turner:

Turner looks like this year’s Ben Zobrist; a good player who will get underpriced because he doesn’t feel as good as he actually is. At $70 or $80 million, Turner still isn’t getting priced like a star; that’s Mike Leake money these days. And Turner is pretty clearly better than a pitch-to-contact starting pitcher. So for a team that wants an impact player at a price that doesn’t reflect the kind of value they’re likely to get, Turner is probably the best bet on the market.

The evidence backs Cameron’s assertion. The crowd pegged Turner for a $70 million contract over four years, while Cameron went a bit higher at $80 million. Using Turner’s 3.6 projection for next season, a value of $8.5 million per WAR and the standard aging curve, we arrive the following projected values.

With those figures, Turner is likely to be a major bargain. But beginning with Turner’s 2017 projection is only one means to estimate his future production. We can also use some comps.

Turner has had an unusual run to his current role as “prime free agent,” going from replacement-level player through age 28 to one of the better players in baseball over the past three years. He’s not the first player to make this type of transition, but his unusual trajectory makes it difficult to find historical precedent.

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One year ago, Yoenis Cespedes was coming off an MVP-like season, having just turned 30 years old. It seemed inevitable he’d sign a large contract. Nevertheless, his market failed to develop. Instead, Cespedes opted to settle with the Mets on a three-year deal for $75 million, an agreement that also included an opt-out clause.

Now, entering the offseason, Cespedes isn’t merely a year older but he’s also coming off a season in which he produced roughly half the wins of his 2015 campaign. Given his age and performance in 2016, it would be reasonable to think his market and future would be less certain than a year ago. In a different market and a different level of certainty regarding his future, though, Cespedes is set to receive the contract most thought he would sign last season.

Determining a player’s value in a vacuum can be a different thing than determining the contract he’s actually likely to receive. For the most part, players in free agency receive more than they’re actually worth; the bidding process rewards/punishes the highest bidder, which is presumably the team with the highest valuation of the player. Cespedes was ranked as the top free agent by Dave Cameron this offseason, and both Cameron and the crowd have estimated that Cespedes will receive a five-year contract worth about $120 million. Now, let’s figure out how much Cespedes will actually be worth over the course of that contract.

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Last year’s free-agent class was one of the strongest we’ve ever seen. With legitimate aces like Zack Greinke and David Price heading the class plus young outfield talent in Jason Heyward and Justin Upton, a bona fide slugger in Chris Davis, along with a host of other mid-rotation starters and solid position player options, teams spent roughly three-quarters of a billion dollars on free agents in 2016 salaries alone. This season lacks talent at the top and depth in the middle, but that doesn’t mean we should expect to see a lot less spending. Nobody is likely to receive $200 million, but teams have plenty of money to spend and it has to go somewhere.

One way to think about how much money teams have to spend this offseason is to consider the salaries departing from their rosters. The chart below measures the money that has disappeared from clubs’ payrolls. To calculate each figure, I began with every club’s Opening Day obligations from 2016 and identified those players making at least $1 million in 2016 who either (a) were traded during the season or (b) have become a free agent in the meantime. I then added up the salaries of the departing players. This shows how much teams are losing in salary based on departures alone, with data gathered from Cot’s Contracts.

We often think of payroll coming off the books as a benefit for clubs. Player contracts, especially large ones, tend not to be very valuable in their final years. Think about the Los Angeles Angels, for example, who enter the season with $60 million less in obligations. The team had large commitments to pitchers Jered Weaver and C.J. Wilson. While both of those pitchers were good at points of their careers, they provided little in terms of on-field value last year. The Angels, if they so choose, can now take the roughly $40 million formerly invested in those pitchers and put it to better use. If we work under the assumption that a win costs $8.5 million in free agency, the Angels could conceivably improve themselves by around five wins by spending that money on contributing players.

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Next year’s free-agent class is going to be weak. It was going to be weak before Stephen Strasburg opted out of it. It was going to be weak before Adrian Beltre opted out of it. It might have been strong if Madison Bumgarner, Freddie Freeman, Buster Posey, Chris Sale, and Giancarlo Stanton hadn’t opted out of the class much earlier, but we’ve known for a while now that this year’s free-agent class was not going to be strong. Without Strasburg, the pitching class will be one of the weakest we have seen in recent history.

The position-player side of this year’ free-agent class won’t be strong, but between Jose Bautista, Edwin Encarnacion, Carlos Gomez, and Josh Reddick — along with Yoenis Cespedes and a resurgent Dexter Fowler opting in to next year’s class — there will be handful of above-average players available for teams looking to add an extra bat. On the pitching side, that will not be the case.

After Cespedes signed his three-year contract with the New York Mets, I took a look at the free-agent class Cespedes was entering. With Strasburg gone, Cespedes is likely the top free agent and the only one projected for more than four wins this season. The pitching side looked even worse, as I wrote in January:

Next year is a good year if you want to get a closer on the free-agent market, but if you want an a pitcher approaching an ace level, it is Stephen Strasburg or bust. James Shields would need to opt out of his contract. The same holds true for Scott Kazmir, who got $48 million in the current market. Brett Anderson accepted the qualifying offer this year. The top of next year’s class looks a lot more like the middle of this year’s, and the middle next year looks a lot like the lower-tier options from this offseason.

Aroldis Chapman and Kenley Jansen will be free agents, but when it comes to starters, there’s not much to go around. Last year’s class was topped by Zack Greinke and David Price, but Johnny Cueto and Jordan Zimmerman weren’t terrible fallback options. Zimmerman put up three wins above replacement last season and he received the fourth-largest contract of the past offseason. Unless a pitcher dramatically exceeds his current projections there won’t be any pitchers who put up even a three-win season this year. The only pitcher currently projected to produce more than 2.1 WAR this season is a 36-year-old pitcher who recorded no major-league starts for a period of six years between August 2009 and September 2015.

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Pay scales using merit and tenure seem to be opposites of one another. Under the tenure system, pay rises as more service time accrues; under the merit system, pay is correlated with performance. While two the models might seem at odds, the Major League Baseball Players Association, along with Major League Baseball, have created a bit of a hybrid between the two systems.

Those players without much service time, like Gerrit Cole and Jacob deGrom, have their salaries set for them without regard for their performance, while veteran players like David Price and Jason Heyward are free to receive pay based on their track record and expectation of future performance. While we can debate how fair this system is, particularly for young players, what is more certain is the disparity in pay between players — it is massive.

There will be 750 players on MLB Opening Day rosters, and while we do not yet know the identity of all those players, given the contracts that have been given out, we can get a fairly good idea of the breakdown of salaries and service time of the group as a whole. Looking at all the players with guaranteed contracts and providing minimum salaries to fill out the roster in the same manner I did when projecting 2016 payrolls for all MLB teams, we can get a decent idea of how money is spread out among players.

Taking a broad look at salaries with respect to service time, here is a scatter plot of 2016 salaries and service time.

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Featuring Chris Davis, Zack Greinke, Jason Heyward, David Price, and Justin Upton, this offseason’s free-agent class was one of the best in recent history. Of that group, Davis, Heyward, and Price entered free agency with the minimum six years of service time, while Greinke was taking his second bite at the free agency apple and Upton had his slightly delayed by a contract extension signed with Arizona before the 2010 season. Of this year’s class, Mike Leake, Jeff Samardzija, and Jordan Zimmermann also went without contract extensions before hitting free agency, creating one fantastic class. Next year’s class is much weaker — not because there are fewer valuable players who’ve recorded similar service time, but rather because so many great players entered contract extensions delaying free agency.

Yoenis Cespedes has a one-year opt-out in his new contract with the Mets that will enable him to enter a poor free-agent class with aging hitters like Jose Bautista, Adrian Beltre, and Edwin Encarnacion; mid-level outfielders like Carlos Gomez and Josh Reddick; just one elite pitcher in Stephen Strasburg; and a few elite closers in Aroldis Chapman and Kenley Jansen. Next year’s class was not always like this. A slow erosion of free-agent eligible players occurred over the last several years, robbing the market of what could have been one of the greatest free-agent classes of all time.

Consider the following timeline:

• March 26, 2012 — Milwaukee Brewers sign catcher Jonathan Lucroy to five-year deal worth $11 million with an option to take the deal through the 2017 season.

• April 16, 2012 — San Francisco Giants sign Madison Bumgarner to five-year deal beginning in 2013 worth $35 million with two options that could take the deal through the 2019 season.

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We have seen a lot of money thrown around this offseason, particularly on the pitching side. Players at the top end like David Price and Zack Greinke have received $200 million contracts while mid-tier pitcher like Mike Leake, Jeff Samardzija, Wei-Yin Chen, and even Ian Kennedy have received contracts approaching nine figures. On the hitting side, the market moved considerably slower, but Jason Heyward got nearly $200 million, including close to $80 million over the first three seasons before a pair opt-outs become available to him. Justin Upton still got more than $130 million with a favorable opt-out clause, and it appears that Yoenis Cespedes will do just fine as well after some talk that both he and Upton might have to take one-year deals. Describing this year’s class is one thing, but compared to the classes over the last decade, it might be the best we have seen.

A brief look at this year’s class reveals a collection of high-end players who produced strong 2015 seasons. Consider the players in the table below, sorted by projected contract value per FanGraphs Crowdsourcing and featuring both 2015 performance and the total dollar amount of the contract signed.

Assuming Cespedes signs somewhere in the $100 million range, the average will still be right around $140 million per contract, an increase of more than 50% from the top ten free agents last year. Thanks to the efforts of Carson Cistulli, we can take a look at the free agent classes in each of the past five years, and compare the top ten free agents according to the FanGraphs crowd.

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