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Players Affected By Arbitration Decisions

ESPN's Buster Olney looks at several free agents who currently reside in "compensation-pick purgatory": Orlando Cabrera, Juan Cruz, Jason Varitek, and Ben Sheets.  The cost to sign one of these four includes the loss of a draft pick, causing many teams to avoid them.  You can add Orlando Hudson and perhaps Oliver Perez to Olney's list.  Darren Oliver (or his agent) saw this situation coming and chose to accept arbitration.  Tony Massarotti says the Red Sox would've been more inclined to sign Derek Lowe if they'd also signed Mark Teixeira, but now they don't want to give up their first-round pick for Lowe.

There are Type As and Bs who would've made more money accepting their team's arbitration offers; Olney names Paul Byrd and Jon GarlandPeter Gammons mentioned Cabrera and Varitek yesterday.  Mark Grudzielanek might be another case, though most assume he had a prior arrangement with the Royals to decline.  Agents such as Bo McKinnis (Byrd), Craig Landis (Garland), Dan Lozano (Cabrera), and Scott Boras (Varitek) have some explaining to do.

Remember our "Surprisingly Not Offered Arbitration" list from December 2nd?  Here it is again:

Bobby Abreu
Joe Beimel
Pat Burrell
Adam Dunn
Braden Looper
Jamie Moyer
Randy Wolf
Kerry Wood

Aside from Wood and maybe Wolf, we can see now that most GMs made these decisions with excellent foresight.


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Hopefully Paul Byrd turned down his arbitration offer so that he can come back home to Cleveland! Koo kooooo!

Tim, I agree that these guys showed good foresight in predicting the market, but at the same time, do you think that these players would have accepted arbitration all the way back then, not knowing what they know now?

I think this was answered in the comments of another post but: if none of these players sign by the draft deadline then the teams receive no picks? What if the player retires or doesnt play until after next year?

I'm surprised that Abreu isn't getting any love so far. He has good patience at the plate, hits for a high average and gets a ton of RBIs. Whoever signs him will get a pretty good bat.

Krambo,

I could see Byrd wanting to return to Cleveland. Knowing the type of person he is, Paul Byrd isn't overly concerned with money, and apparently did not like Boston (perhaps due to the convenient timing of the HGH report coming out, while in Boston before game 7 of the 2007 ALCS). Perhaps he can come back to the Jake and finish the run they started two years ago. At his age, he certainly wants one last chance at a ring.

Quite honestly, the signing of Carl Pavano should not preclude Byrd from coming back, considering Pavano is more or less expected to fail.

I'm not so sure declining arbitration on Moyer was a great move, I really doubt arbitrators would have given him much more than he ultimately signed for ($6.5 guaranteed that will likely turn into $7.5 million with performance bonuses that will also trigger a salary of around 9 million in 2010 when he turns 48).

With arbitration, they'd have him for one year at probably equivalent money without the albatross of paying $9 million two years down the road. That way they could hit the free agent market and sign Charlie Hough and Jesse Orosco for 2010.

I believe if the Mets sign Varitek it would now cost them only a 3rd round pick and at this point the $s would be very low.

Cinco Ocho - Abreu isn't getting any love because he's expensive and wants to start.

I could see him heading to LA if the Dodger can't get Manny back, but I don't see Manny signing anywhere else...

As for Varitek... I'm not sure what he was thinking by not taking the $10-12M he would have gotten from the Sox in arb.

Boras may have landed Teixeira the deal he wanted, but he screwed Tek with that decision...

Now the Sox can get him back for half of that.

Agreed on the Moyer point.

Nrmax, also a good point. Several of those players probably would've declined, using the same mindset Cruz, Cabrera, etc. did. Dunn for example.

I agree with nrmax88, I think its pretty obvious that these free agents would not have accepted arbitration. Peter gammons said the union was advising against their members accepting arbitration.

Only 2 people who were offered arbitration accepted. So even guys like Varitek, did not accept eventhough most people think it was a big mistake in hindsight.

I also have to wonder, if what we are assuming (that players would get a raise in arbitration) is really the case.

Arbitration is not a guaranteed raise, the team and the players agents offer what they think is fair salarys given their playing experience and quality, etc. Their salary is compared to players salary's of similar experience, etc.

We have very little players who were in this situation the players listed above in and actually accepted arbitration. Its pretty rare, that they cannot do better on the market then in arbitration.

Sephrath, Tim, somebody....

Doesn't the CBA limit the percentage an arbitrator can cut a player's salary? So, if the limit is 20%, doesn't that mean Varitek could not be awarded less than $8M?

I agree with others. Most of the good players (Dunn, etc) would have declined at the time.

If the players sign a minor league deal does that void the compensation? Does anyone know?

Baseball may very well have its first sign and trades this winter.

Didn't the players union suggest that most players decline arbitration? It doesn't look like good advice now. I wonder what repercussions this will have in the future as far as players following what the union suggests.

Is 1yr/$14mil for Pat Burrell worse than 3yr/$31 mil for Raul Ibanez?

bottomlinesox - Yea, that's a good point on Abreu. Eventually, if he wants a job, then he'll come down on his price. Seems like some of the players/agents don't believe in the mythical "recesssion", lol.

pmc765,

I am pretty sure that a player can only get a X% of a cut in arbitration, what that % is, i don't know. It is what ticked Mark Prior off with the cubs because Hendry went to arbitration one year asking for that cut on the cubs end.

Every time i hear his name now i just wish MLB had a slot bonus in place for the picks, becuase he would never have been a Cub.

"Is 1yr/$14mil for Pat Burrell worse than 3yr/$31 mil for Raul Ibanez?"

Not in my mind. Worst case scenario you have him for 1/14, best case he leaves and you get some picks.

Well actually, worst case scenario is not offering him arbitration and then signing a different Type A that doesn't fit your team well but has hit well with RISP.

It is hard to call Dunn "good foresight." Maybe in relation to after the season but go back a few more months and it is the opposite. I do not think it took hindsight to know that varitek was nuts to not accept arbitration. One of the more interesting side effects of the economic climate is that teams are definitely charging players negative values for having bad defense.

"I also have to wonder, if what we are assuming (that players would get a raise in arbitration) is really the case.

Arbitration is not a guaranteed raise, the team and the players agents offer what they think is fair salarys given their playing experience and quality, etc. Their salary is compared to players salary's of similar experience, etc."

Ummm sure and arbitrators have only 2 choices, the club's offer and the player's request. So if a team short changes the player base off years, numbers and other relevant active contracts, guess who wins?

"Doesn't the CBA limit the percentage an arbitrator can cut a player's salary? So, if the limit is 20%, doesn't that mean Varitek could not be awarded less than $8M?"

Not for free agents. The 20% max cut rule only applies to players with less than six years of service time. However, there's an obvious problem with offering arbitration and then submitting a salary figure that would be more than a 20% cut: you're likely to lose unless the player asks for a ridiculous raise.

I'm surprised there hasn't been mention of draft pick protection for those picking in the top 15. I'd imagine they'd be more inclined to sign these players, being at no risk to lose their 1st round pick.

What gets me about it though, is that some of these teams that didn't offer arb were going to fill the position anyways.

The Cardinals need a starting pitcher, now that Looper is gone. If they don't get one of the big guns like Sheets, Lowe, or Ollie Perez, then not offering arb to Looper looks like a bad decision. Especially in light of the Lohse extension and if they give out a multiyear deal to a mediocre pitcher (i.e. one who is not significantly better than Looper).

Same with Phillies/Burrell or Moyer, ESPECIALLY Moyer since that would've effectively brought Moyer's price down as other teams might not be willing to give up the draft pick for Jamie.

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