Giancarlo Stanton’s Opt-Out Caps His Trade Value

The better Stanton performs over the next few years, the more likely he is to opt out. (Photo: Corn Farmer)

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.

Giancarlo Stanton’s Contract — 10 yr / $295.0 M
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.

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Assessing the Trade Value of Giancarlo Stanton

The Marlins are sellers this year. Adeiny Hechavarria is already gone. Kyle Barraclough, David Phelps, and A.J. Ramos are among the bullpen pieces that might be appealing. Marcell Ozuna is having a great year and has two more years of control after this one, so he would be a desirable piece. If the team opted to, they could get a haul for Christian Yelich, too. And if the team is truly selling for the future and wants to reduce future salaries either for a future owner or because that’s just what the Marlins do, then trading Giancarlo Stanton has to be an option, as well.

It’s not entirely clear how much value Stanton has in trade. He’s obviously been a very good player to this point in his career and has recorded a 130 wRC+ so far this year. The projections see him doing roughly that the rest of the way, as well, coming close to a four-win season. He’s also only making $14.5 million in 2017, which makes him quite valuable in the near term. Detracting from that value in the longer term is the $295 million owed to Stanton over the next 10 years, part of a deal that will pay him through his age-37 season. He also has a no-trade clause. Adding to the complexity is an opt-out clause Stanton possesses in his contract after the 2020 campaign. He’ll be finishing his age-30 season at that point and will be owed $219 million over the next seven seasons.

Given the size of his deal, the return for Stanton might not be great. For that reason and because he’s a good player now and because he’s likely to remain a good player for the next few years, it’s fair to question why the Marlins would bother moving him. It’s probably too easy just to say “Because that’s what the Marlins do.” But, well, that is what the Marlins do. That opt-out might end up being difficult to turn down, and the current owner, Jeffrey Loria, likely has no interest in paying a 30-plus-year-old slugger $30 million a year. There are also rumors that the Marlins will be sold at some point soon. Before teams are sold, we often see large contracts moved in order to make the team more attractive in terms of future commitments.

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The Uncertain Future of Giancarlo Stanton

In 2010, 20-year-old Giancarlo Stanton slugged 22 homers in 396 plate appearances. Only 11 20-year-olds had ever hit more home runs in a season, and only Bob Horner in 1978 hit more homers in fewer plate appearances. At 21, he hit 34 homers, fourth among 21-year olds, and nobody hit more in fewer than Stanton’s 601 plate appearances. His 37 homers the next year were eighth among all 22-year-olds, and nobody had more in fewer than Stanton’s 501 plate appearances.

At 23, Stanton had “only” 24 homers in 504 plate appearances, and at 24, he hit 37 without playing a full season. Last year, he hit 27 homers in 317 plate appearances and nobody at any age has ever hit as many home runs with fewer opportunities. If there is a theme, it’s that Stanton hits a ton of home runs. If there is a secondary theme, it is that he doesn’t play full seasons. The first one is great. The second one could be cause for concern.

This is cherry-picking the data a bit, but there have been 89 player seasons where a player hit at least 22 home runs and had 505 plate appearances or fewer before or during a player’s age-26 season, per Baseball-Reference Play Index. Of those 89 seasons, 74 happened once, including 11 in strike years. Five players have two such seasons, although Mike Piazza’s happened during the strike and lockout. The only player with more than two is Giancarlo Stanton, and with him out for the season, 2016 will make the fifth time it has happened in his career. Extend the age requirement up to 30, and still nobody has more than three such seasons. Get rid of the age requirement all together and the only other player with five such seasons is Jose Canseco, and two of those seasons were shortened by a strike.

Stanton’s injuries have generally varied enough that there does not appear to be anything chronic in nature. In review:

  • 2012: missed less than a month due to arthroscopic knee surgery on his right knee.
  • 2013: missed a little over a month with a strained right hamstring.
  • 2014: missed last few weeks of season after getting hit in the face with a pitch. No DL stint due to expanded rosters.
  • 2015: missed the rest of the season beginning in late June after a fractured bone in his hand due to a hard swing.
  • 2016: missed the rest of the season beginning in mid-August due to a left groin strain.

We have four separate injuries, none overly serious, and after the first three, he came back at or near the same performance level that he exhibited previously. Despite all those injuries and missed time, his 26.7 WAR is still in the top-100 of all time through age-26, and his 206 homers are 16th through the same age. Read the rest of this entry »


Stanton, Altuve, and Another Warning About Defense

Over the last calendar year, there are 139 qualified major-league hitters. Prorating their plate appearances to 600 per person, one finds that Mike Trout has the highest WAR at 7.2, followed by Russell Martin, Buster Posey, and Anthony Rizzo. None of that should come as much of a surprise, but the hitter right behind that group and just ahead of Josh Donaldson, Andrew McCutchen and Bryce Harper could provide a bit of shock. Over the last calendar year, Kevin Kiermaier has been worth six wins per 600 plate appearances.

Kiermaier, who has worked to improve his offense, is incredibly reliant on his fantastic defense for his great WAR numbers. While Kiermaier is a valuable player, it is possible that his WAR total is inflated by defensive numbers that are likely to come down over time. Kiermaier has logged roughly 1200 innings in the outfield and has a UZR/150 of 42.1, but only six active outfielders with at least 2,500 innings have a UZR/150 greater than 15, with Lorenzo Cain, Ben Zobrist, Peter Bourjos, Brett Gardner, Josh Reddick, and Jason Heyward falling between 16 and 22 — that is, roughly half Kiermaier’s current rate. Although he’s been good, Kiermaier is probably not the fifth-best player in baseball over the last year, and his defensive numbers should serve as a reminder that defensive statistics take some time before they become reliable.

Yesterday, I covered some players whose current WAR was potentially undervalued due to lower than normal defensive numbers in an article titled Heyward, Pedroia, and Your Annual Reminder About Defense. The present article renders yesterday’s title false as the articles together are now daily reminders, but this post should be the final one in this series with few, if any, more reminders coming in the near future. The caveat regarding small sample size from Mitchel Lichtman and our FanGraphs library is quoted more fully in yesterday’s piece, but to summarize: use three seasons of UZR when being conclusory about the defensive talent of any given player.

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Examining Giancarlo Stanton’s Miserable Failure

Friday night in Colorado, Giancarlo Stanton hit a home run. It was a long home run; it was the longest home run, of this season. This is what it looked like, and ESPN’s Home Run Tracker gave it a distance of 494 feet. The game was played at altitude, sure, but the wind was blowing in. Then Saturday in Colorado, Stanton hit another long home run. That one had a distance of 465 feet, making it Stanton’s second-longest dinger of the year. That home run also allowed Stanton to set a record. Saturday’s was Stanton’s sixth career game in Coors, and it was his sixth career game in Coors with a homer. Stanton became the first player to do that.

It makes perfect sense that Stanton would make a mockery of Colorado, just as it makes perfect sense that Wily Mo Pena would make a mockery of Japan, even though he isn’t, exactly. Stanton’s game is the jaw-dropping longball. Colorado’s game features a lot of longballs. The idea of Stanton playing in Colorado more often brings to mind the idea of some incredible records.

Sunday, Stanton played his seventh career game in Coors. In zero of his plate appearances did he hit a home run.

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The Marlins Have No All-Stars

The Miami Marlins spent a pretty penny this offseason, signing free agents Jose Reyes, Mark Buehrle and Heath Bell to help generate interest in the team and its new stadium. With several strong pieces in place before these lucrative deals were doled out, the Marlins figured to vie for playoff contention. Best laid plans haven’t come to fruition, as at 41-44, the Marlins have been very disappointing. It’s a perfect metaphor of their season that they won’t be represented at this week’s all-star game.

Giancarlo Stanton was initially tabbed as the only Marlins all-star, and his selection was deserving. Stanton has a .392 wOBA on top of solid fielding marks and is currently on pace to finish with 37 home runs and 5.7 WAR, both clear career bests. Though he was the only player chosen from his team, this was not a token selection by Tony La Russa. Stanton ranks 14th in the National League in WAR, and would certainly stands out as someone wanted for a team in a game that determines home field advantage in the World Series.

But, once again, the uncertainty surrounding the true purpose of the all-star game is rearing its ugly head. Stanton got hurt, was removed from both the home run derby and the game itself, and La Russa and MLB opted against adding another Marlins player. From the standpoint of putting the best product on the field in order to win an important game, the decision makes some sense. However, the game itself hasn’t changed all that much after the home field stipulation was added and under the current rules it seems strange not to add a replacement.

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