Why long-terms deals are on the rise
Posted: Tuesday, May 06, 2008 3:56 PM
Have you ever told anyone they shouldn’t have insurance? Perhaps you have questioned the amount of insurance purchased but the concept itself? Not me.
So in a recent USA Today piece on the growing number of pre-free agency players signing multi-year contracts, the stance of agent Scott Boras, while hardly surprising, was notable.
For those unfamiliar with this topic here’s the scoop: Clubs try to lock up their best young players to contracts that fix costs. Other benefits of such deals include avoiding arbitration (something many players also appreciate) and in some cases, a year of free agency.
Boras believes these contracts are club-friendly and are designed to take players out of the arbitration process. Einstein is not needed to deduce that everyone in baseball fully understands that arbitration is heavily weighted towards the player. (Even the great Marvin Miller understood that arbitration was a more powerful tool than free agency). Thus clubs tried to find an alternative to going to arbitration and what they’ve come up with his insurance for players in the form of multi-year deals early in their careers.
By offering players security and peace of mind the clubs in return can establish fixed costs. The sheer number of such deals indicates that both sides see benefit in the practice.
Take the case of Troy Tulowitzki, who signed away two years of free agency in the six-year, $30 million deal he agreed to with the Rockies before Opening Day. Last week Tulowitzki tore up his quad and he will be out until at least the All-Star break. Although he is not arbitration-eligible, how much better do you think Tulowitzki and his family feel with the financial insulation they now have against significant injury in years 4-6 of his deal?
Or take the case of Zack Greinke, now on the rebound in Kansas City from a social anxiety disorder that threatened his career? How about Rocco Baldelli, a promising Tampa Bay Rays outfielder, whose career is in jeopardy from a rare disease? Baldelli signed a three-year, $9 million contract in 2006 avoiding arbitration. If he never plays again, Baldelli receives $2.25 million in 2008 and a $4 million buyout. Surely no money can fully salve the wound of a career ending too soon, but in the worst case Baldelli has the means to embark on a new life.
By the way, Baldelli negotiated that contract extension himself -- after firing Boras. Baldelli bought insurance and he is the wiser for doing so.
Multi-year deals are not the preference of all players who find themselves in position to get such contracts. The Upton brothers (B.J. of the Rays and Justin of the Diamondbacks) display their willingness to go year-to-year with their deals through their six years in the big leagues.
Some players are willing to gamble and that’s their right. In some cases, the gambler will win and earn more money. But who is anyone, particularly an agent, to suggest a player is fool-hardy to insure himself and his family from the worst-case scenario.
Agents can become invisible or be long gone when a player’s career heads the wrong way (no one in San Francisco has heard a peep from Boras as “Zicasso,” Barry Zito languishes in the bullpen). It is the player who has to stand front-and-center to accept responsibility while his agent cashes checks.
FIVE MORE SWINGS
1. HE HAS DH NUMBERS, BUT…Micah Owings will be better served doing double duty as a pinch-hitter in the National League. Watching him leg out an infield hit in a pinch-hit role Sunday reinforced the dilemma for Arizona manager Bob Melvin.
Owings is such a good hitter that he affords Arizona an extra bat on the bench. But the potential nightmare that exists is seeing a starting pitcher blow out a hamstring running the bases. Temptation to call upon Owings too often and thereby increase the risk of injury must be resisted as was the case with Dontrelle Willis and Woody Williams, starting pitchers who in recent years have doubled as pinch-hitters.
2. IF YOU DOUBT THE ERRATIC NATURE OF RELIEF PITCHING…just look at Milwaukee. On the same weekend that the Brewers cut Derrick Turnbow, an All-Star closer two years ago, Eric Gagne, the new $10 million savior, blew his fifth save in one month. The Brewers are floundering at .500 instead of leading their division and Gagne is getting fingered as the main culprit.
3. JUST WHEN YOU THOUGHT DETROIT WAS ROLLING…the Tigers got swept in Minnesota. Detroit manager Jim Leyland promised change and it started last night with the elimination of Jacque Jones, who was designated for assignment.
What continues to hurt Detroit are the injuries to the setup men, Fernando Rodney and Joel Zumaya. What is saving Detroit is Cleveland’s erratic play. And then there are the Twins, quietly sitting atop the division with Joe Mauer second in batting, Justin Morneau third in RBI and Joe Nathan a shut-down closer.
4. A HUGE FALL FROM GRACE…continues for Bronson Arroyo. The Reds thought they had the makings of a terrific rotation anchored by Aaron Harang and Arroyo and backed up by wildly talented kids in Edinson Volquez and Johnny Cueto. But Arroyo is a mere shell of the pitcher who was an All-Star in 2006. He is 1-4, his ERA is 8.63 and the Reds are reeling at 13-20.
5. THE WORST TRADE IN RECENT HISTORY…had its final chapter written last week. Pittsburgh released Matt Morris, eating $10 million in salary, about 20 percent of the Pirates’ 2008 payroll. Where do the Pirates stand in yet another rebuild? Well, Saturday the Washington Nationals radio network ran this promo, “Tune in tomorrow as the Nats take on Nate McLouth and the Pittsburgh Pirates!”
