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Extensions That Didn’t Buy Out Free Agent Years

By Ben Nicholson-Smith | February 18, 2011 at 2:40pm CDT

When MLBTR's Tim Dierkes and I examined the reasons teams do and don't extend young starters last fall, it became apparent that obtaining control of free agent years was critical for teams considering extensions. By locking a player up for one or more of his free agent seasons, the team gets to keep the player for longer, without having to bid for him on the open market.

Red Sox GM Theo Epstein weighed in on extensions for arbitration eligible players this morning and explained that he doesn't like the idea of extending players if they aren't willing to sign a deal that includes a free agent season.

"If we’re going to sign arbitration-eligible players long term, we have to get one free agent year and we have to get an option for the club," Epstein said on WEEI. "Because we’re giving the player certainty. We need to be able get some of those prime years back in exchange. That makes it a fair bargain."

Most of the 21 arbitration eligible players who signed extensions this offseason surrendered at least one year of free agency, but nine players signed multiyear deals that provided them with security without delaying their arrival on the free agent market.

There are potential benefits for the teams that signed extensions without gaining control of their players' free agent years. The clubs obtained cost certainty and may end up saving money through arbitration, so free agent years aren't the only variable in play. The arbitration eligible players below signed extensions that did not include free agent years this offseason (sorted by most guaranteed dollars):

  • Reds – Joey Votto $38MM for three years
  • Rangers – Josh Hamilton – $24MM for two years
  • Diamondbacks – Stephen Drew – $13.75MM for two years (mutual option for 2013)
  • Rockies – Jason Hammel – $7.75MM for two years
  • Blue Jays – Rajai Davis  - $5.75MM for two years
  • Cubs – Sean Marshall –  $4.7MM for two years
  • Nationals – Sean Burnett –  $3.95MM for two years (mutual option for 2013)
  • Tigers – Ryan Raburn – $3.4MM for two years
  • Mariners – Brendan Ryan – $2.75MM for two years

These extensions are by no means a new trend. Last winter alone, Mark Reynolds, Tim Lincecum, Brian Wilson, Andre Ethier, Jonathan Broxton and Matt Kemp signed extensions that didn't cover any free agent years.

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13 Comments

  1. Brad426

    14 years ago

    Just as I said in a different post to Tim: how can it be called an extension if the amount of time that the player is obligated to the team isn’t lengthened?

    Take Votto as the example… yes, he was arbitration eligible in 2011, 2012, and 2013 but as long as the Reds wanted him he couldn’t go play for another team (or am I wrong about that?) So the contract he just got didn’t extend the amount of time he was contractually obligated to play for the Reds by a second, right?

    Reply
    • CJ Montiel

      14 years ago

      Yes but now they can’t “non-tender” him. So it’s basically more of a risk for the club which is why the Votto deal looks so bad for the Reds.

      You would think that since they’re guaranteeing those years to him, they would get some type of a discount and it doesn’t look like they did.

      Reply
      • Janssen

        14 years ago

        Still baffled by that deal. It seems like the handed him a bucket-load of money for no real reason. Do they not understand how the process is supposed to work? Very strange signing.

        Reply
        • Guest 7276

          14 years ago

          Its because they know that once he hits free agency, the only team he really wants to play for is the Blue Jays.

          They are trying to butter him up so he’ll stay.

          Reply
          • Gunner65

            14 years ago

            Keep dreaming

            Reply
            • Guest 7275

              14 years ago

              Its not my dream, its Vottos! He told me.

              Reply
    • Chip1010

      14 years ago

      Correct.

      “Extension” might not be the best word, but it’s just the accepted term. And although a player is under team control for six years regardless, he doesn’t have a contract until they offer him one every year, and they’re only one-year deals. So, in a way, the player’s contract IS extended in that it’s guaranteed over the next x number of years instead of just one.

      Reply
      • Brad426

        14 years ago

        Yeah, I guess I am quibbling over semantics, but the very definition of the word is “an ADDITIONAL period of time given one to meet an obligation” and in these examples there is no additional time.

        But thanks for the reply.

        Reply
    • Luis

      14 years ago

      Correct

      Reply

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