Giancarlo Stanton’s Opt-Out Caps His Trade Value
With the Marlins looking to cut payroll, Giancarlo Stanton seems likely to be traded at some point this winter. Stanton not only takes up a lot of that payroll, but his talents are desirable to other teams. The grounds for a trade are obvious. At the same time, the 10 years and $295 million remaining on his contract present a roadblock to acquiring him. So does his no-trade clause, which he could use to block a trade to one of the clubs willing to take on his salary.
Another concern is Stanton’s opt-out clause. While less of an obstacle to the eventual completion of a deal, it’s a factor. By the terms of the opt-out, Stanton will have the choice, in three years, either to become a free agent, or exercise a player option for seven years and $218 million. In late June, when Stanton had a 131 wRC+ and looked to be on pace for “only” a four-win season, the opt-out didn’t seem to matter too much; the probability that he’d exercise it seemed pretty low. A monster second half and MVP Award later, though, and that opt-out is back in play, and it negatively affects Stanton’s value.
Without revisiting whether player opt-outs benefit a team (Dave Cameron wrote about it over the course of multiple posts two years ago with the last one here), let’s just dig into the numbers a bit and see what they say. Last week, Eno Sarris advocated for trading for Stanton, noting that if Stanton ages normally, there’s a big surplus on the contract. Sarris also noted that, even if Stanton ages poorly, the contract would remain pretty close to the current market rate.
Here’s an estimate of Stanton’s value were he to age normally, starting with $9 million a win. I’ve used Steamer’s win projection (5.3 WAR) for Stanton’s 2018 season.
Year | Age | WAR | $/WAR | Est. Contract | Actual Contract |
---|---|---|---|---|---|
2018 | 28 | 5.3 | $9.0 M | $47.7 M | $25.0 M |
2019 | 29 | 5.3 | $9.5 M | $50.1 M | $26.0 M |
2020 | 30 | 5.3 | $9.9 M | $52.6 M | $26.0 M |
2021 | 31 | 4.8 | $10.4 M | $50.0 M | $29.0 M |
2022 | 32 | 4.3 | $10.9 M | $47.0 M | $29.0 M |
2023 | 33 | 3.8 | $10.9 M | $41.6 M | $32.0 M |
2024 | 34 | 3.3 | $10.9 M | $36.1 M | $32.0 M |
2025 | 35 | 2.8 | $10.9 M | $30.6 M | $32.0 M |
2026 | 36 | 2.3 | $10.9 M | $25.2 M | $29.0 M |
2027 | 37 | 1.8 | $10.9 M | $19.7 M | $35.0 M |
Totals | 39.0 | $400.6 M | $295.0 M |
Assumptions
Value: $9M/WAR with 5.0% inflation (for first 5 years)
Aging Curve: +0.25 WAR/yr (18-24), 0 WAR/yr (25-30),-0.5 WAR/yr (31-37),-0.75 WAR/yr (> 37)
As structured, the deal looks pretty good for the team, with a surplus of over $100 million. Except for one thing, though: this version of reality isn’t ever likely to occur. In three years, Stanton will be just one year older than J.D. Martinez is right now. If he puts up three five-win seasons in a row — better than what Martinez just did in one season — his value on the free-agent market is going to exceed the $218 million he is owed. In that case, Stanton would almost certainly opt out, cutting the surplus by 30%.
The above case represents just one scenario, though. To play this out, let’s consider a bunch more and see where it leads. For the purposes of this exercise, let’s assume the 5.3 WAR figure is a good estimate of Stanton’s present talent. Note that the higher estimate you put on his talents, the more likely Stanton is to opt out. If you put a six-win talent estimate on Stanton and give him 18 WAR over the next three seasons, that place among the greats. The only primary right fielders to do better than that from 28 to 30 since 1947 are Hank Aaron, Stan Musial, and Frank Robinson. Even in that scenario, the surplus is under $100 million. There’s a limit on how much high-end value Stanton can provide because of that opt-out.