NFL playoffs are right around the corner, but ’tis the season for a jolt of baseball excitement too, as teams sign new players. The contracts are getting bigger and bigger, supported by growing MLB revenues. Some of the major signings under the tree this year (more here):
- Zack Greinke, 6 yrs, $147 million (Dodgers)
- Josh Hamilton, 5 yrs, $125 million (Angels)
- B.J. Upton, 5 yrs, $75 million (Rays)
- Anibal Sanchez, 5 yrs, $80 million (Tigers)
But before you start thinking playoffs, remember that many big deals don’t work out. Who will be nice and who will be naughty this year?
The Old Lumps of Coal
From the list above, Greinke is 29 years old, Hamilton is 31, Upton is 28, and Sanchez is 28. Not many young players are available through free agency, but are these 4 to 6 year deals for 28 to 31 year olds a good idea? I tackled this question with my friend Jeff Phillips for ESPN the Magazine in early October.
Specifically, we wondered if long deals for 30 year olds made more sense during the steroid era, when players could recover, train, and maintain more easily. There are two sides of the coin: (1) how has older player performance changed, and (2) has older player compensation evolved appropriately. We focused on players in the top quarter of the salary distribution, since that’s where the big money is spent. To measure performance, we examined average Wins Above Replacement Player (WARP)* by age during and after the steroid era:
Uh oh. Although performance for all highly paid players has gone down, older “stars” have turned out to be coal indeed. Looking year by year highlights the post-PED age decline. Average WARP for older and younger stars was remarkably similar through the steroid era, but older player WARP Continue reading
Posted in Baseball, Causal Analysis, Financial Analysis, Prediction, Trades/Free Agency
Tagged age and performance, Age and steroids, aging, aging baseball, Albert Pujols, Angel Pagan, Angels, Anibal Sanchez, average salary, B.J. Upton, baseball, contracts, David Ortiz, Detroit Tigers, ESPN The Magazine, Fielder contract too long, free agent projections, Jake Peavy, Jeff Phillips, Josh Hamilton, lumps of coal, Major League Baseball, Michael Bourn, Mike Napoli, Mitchell Report, MLB free agent market 2013, MLB free agents, MLB revenue, MLB revenue growth, Nick Swisher, older stars, Post-steroid era baseball, Prince Fielder, projected value, projections, Pujols contract, rising salaries MLB, salary distribution, Shane Victorino, Sports, Steroid era MLB, steroids and age, steroids and aging, Torii Hunter, WARP, worst contracts, worst contracts MLB, Zack Greinke
David Schoenfield put up a fairly useless blog post about the Tigers signing Prince Fielder yesterday. It just became even more useless, as ESPN confirmed that Cabrera will shift to third base to accommodate Fielder (Schoenfield said this would never happen). I knew about this way before ESPN, thanks to Brother Evan passing along a local news link.
The real issue with Schoenfield’s post Continue reading
Posted in Baseball, Financial Analysis, Trades/Free Agency
Tagged Albert Pujols, baseball, brother Evan, Cabrera moving to third, Cabrera too fat to play third, Cabrera will play third, David Schoenfield, Detroit Tigers, ESPN, Fielder, Fielder contract too big, Fielder contract too long, Fielder signing, Los Angeles Angels, Martinez, Miguel Cabrera, Mike Ilitch dumb, MLB, Prince Fielder, Prince Fielder bad contract, Prince Fielder contract worth it, Prince Fielder too much money, Tiger, Victor Martinez, Victor Martinez ACL, Victor Martinez injury, Victor Martinez out for the year, World Series
Major League Baseball’s winter meetings are generating as much talk as ever. Today, the Angels engaged in some economic stimulus with over $300 million in contracts for Albert Pujols and C.J. Wilson. Pujols’s deal is $252 million over 10 years. In ten years, Pujols will be 41.
This is basically the same deal that Alex Rodriguez got from the Yankees before the 2008 season (10 years, $275 million, age 32). Predictably, people are writing that Pujols’s contract is too long. I think this is the wrong view. I bet both sides Continue reading
Posted in Baseball, Basketball, Commentary, Common Sense, Financial Analysis, Trades/Free Agency
Tagged Albert Pujols, Alex Rodriguez, Boston Celtics, C.J. Wilson, Chris Paul, Danny Ainge, free agency, Kevin Garnett, long-term contract, Los Angeles Angles, Marquis Daniels, MLB, Moneyball, NBA, New York Yankees, Rajan Rondo