Jose Bautista’s Arbitration Case
This piece was first published on MLBTR on October 13th, 2010.
Arbitration Expert Breaks Down Bautista’s Value With MLBTR
A glance at the all-time single season home run leaders tells you all you need to know about Jose Bautista’s 2010 campaign. Barry Bonds, Mark McGwire, Sammy Sosa, Roger Maris, Babe Ruth, Jimmie Foxx, Hank Greenberg, Ryan Howard, Luis Gonzalez, Alex Rodriguez, Ken Griffey Jr. and Hack Wilson are the only players who have ever hit more home runs in a season.
Needless to say, Bautista is due for a raise.
Bautista, who heads to arbitration for the fourth and final time this offseason, earned $2.4MM last year, and will make far more in 2011. It’s a question of how much more and the answer isn’t easy to determine.
The problem is, few careers resemble Bautista’s. He played for four teams in 2004, played five positions in 2006 and seemed destined for a career as a utility man when the Blue Jays acquired him in 2008. And in 2010? He made the All-Star team and led the major leagues in extra base hits and home runs.
If your head is spinning, imagine how arbitrators – the decision-makers responsible for settling salary disagreements between teams and players – would feel after considering Bautista’s case for a few hours. The Blue Jays have a history of avoiding arbitration, so there seems to be a good chance that they don’t go to a hearing this time, but the potential for one will shape the sides’ discussions.
The Blue Jays can argue that Bautista deserves a limited raise, but they have to be careful, according to one longtime arbitration consultant.
Votto, Lozano Make Smart Deal
Joey Votto has nothing to lose. He and agent Dan Lozano avoided arbitration and worked out a deal with the Reds that's worth $38MM in guaranteed money. And Votto doesn't hit free agency a minute later than he was originally scheduled to. Cincinnati gets cost certainty, but no free agent years and no visible discount. One agent says the Reds took on all the risk.
"The team paid him as if he was going to be a .350-40-120 player the next two years" the agent said. "Had the team gone year to year to protect against diminished productivity or injury, would they have ever had to pay him more money than $38MM over three years?"
Recent history says the answer is no. Votto will earn more over the course of his first three arbitration years than Miguel Cabrera ($33.7MM), Albert Pujols ($32MM), Mark Teixeira ($27.9MM) or Justin Morneau ($22.5MM) did. Votto's money is now guaranteed, so the 2010 NL MVP will be cashing his checks even if he has an off-year or gets injured.
Ryan Howard ($44MM) is the one first baseman who earned more than $38MM for his first three arbitration seasons. The Phillies slugger pocketed $44MM for that chunk of his career, but one MLB insider says Howard set himself up for a bigger payday than Votto by posting better power numbers in his pre-arbitration seasons.
"Where Howard beats him is in terms of home runs," MLBTR's source said. "He had 129 to Votto’s 90. And Howard had 353 RBI to Votto’s 298. Qualitatively in terms of their rates with batting average and on-base plus slugging, they’re very, very close. The difference really is the home runs and the RBI."
The gap in power numbers would likely have been enough to keep Votto's 2011 salary in the $7-8MM range on a one-year deal. In other words, Pujols, Cabrera and Teixeira were attainable targets for Votto, but he wasn't going to approach Ryan Howard money in his three arbitration years.
This isn't to say that Reds GM Walt Jocketty was wrong to lock up his first baseman. The 2010 Sporting News Executive of the Year could look back on this deal as one that saved him money. His eight-year extension with Pujols and Lozano worked tremendously well, but that deal bought out five of Pujols' free agent seasons.
This time the Reds guaranteed Votto more than fellow-MVPs Pujols and Morneau without obtaining the rights to any of his free agent seasons. The team gets cost certainty, but they are not getting a discount. Lozano and Votto secured a massive win that guarantees the first baseman more than most of his peers and allows him to hit free agency as a 30-year-old.
Beverly Hills Sports Council Finds Relief
The summer defection of agent Dan Lozano left Beverly Hills Sports Council without Albert Pujols, Joey Votto, Jimmy Rollins, Michael Young, and others. Not long after, Dan Uggla and Jayson Werth departed. However, BHSC recovered from a disappointing summer to put together a respectable winter, mainly by finding more dollars or years than expected for their relievers.
We know the new Blue Jays regime loves draft picks, and in early November they chose a $750K buyout and a pick over paying Kevin Gregg $4.5MM in 2011 or $8.75MM in 2011-12. Beverly Hills ended up getting Gregg the first multiyear deal of his career, a two-year, $10MM deal with the Orioles with a vesting option that could bring the total to $16-20MM over three years. Perhaps the Jays simply valued the sandwich pick more than whatever trade value Gregg would have had on a one-year deal, but it's also possible that they didn't expect him to do that well on the open market.
In October, I pegged Brian Fuentes for a one-year deal in the $4MM range, yet he has reportedly agreed to a two-year contract worth more than $5MM per season. I feel like this contract might have been panned had the Astros signed it, whereas with Oakland some might find ways to justify it after the fact. Regardless, it's clearly a player-friendly deal.
41-year-old lefty Arthur Rhodes received a $4.1MM guarantee from the Rangers, the best salary of his career. With good health, he'll end up getting $7.9MM over two years. In November, the Reds were unwilling to take the risk that Rhodes, a Type A free agent, would accept an offer of arbitration. Since he only earned $2MM in 2010, it's difficult to believe Rhodes would have topped $4.1MM for 2011. The implication: Rhodes is another BHSC client who got more on the open market than his old team expected in November.
Will Ohman was coming off a pair of minor league deals, but this winter he snagged a two-year, $4MM deal with the White Sox. The second guaranteed year was a win for the agency. The entire relief market has been inflated from the start this offseason, but BHSC is still brokering player-friendly deals in January.
Beverly Hills also hammered out deals for Tsuyoshi Nishioka, Octavio Dotel, and Brad Hawpe this winter. They've got unfinished business in Todd Coffey and Chad Durbin. After reaching an agreement on a $3.3MM second-year arbitration salary for Ryan Theriot, BHSC has five arbitration cases: Hunter Pence, Ryan Ludwick, Darren O'Day, Jesse Litsch, and Andy Sonnanstine.
Photo courtesy of Icon SMI.
Players To Avoid Arbitration: Monday
Teams and players exchange arbitration figures tomorrow if they haven't already come to terms for 2011. That means plenty of players will likely avoid arbitration today. We'll keep track of them all right here and with our Arbitration Tracker; the latest updates are at the top of this post:
- The Blue Jays avoided arbitration with Shawn Camp, agreeing to a one-year, $2.25MM deal, according to MLB.com's Gregor Chisholm (on Twitter).
- The Tigers avoided arbitration with Armando Galarraga by agreeing to a one-year, $2.3MM deal, tweets Jon Heyman of SI.
- The Orioles and Jim Johnson have agreed to a one-year, $975K deal, according to Jeff Zrebiec of The Baltimore Sun.
- The Blue Jays have reached agreement on a one-year, $830K deal with Jesse Litsch, according to Richard Griffin of the Toronto Star (Twitter links).
- The Indians have avoided arbitration with Asdrubal Cabrera, agreeing to a one-year deal, according to the team's Twitter feed. The deal is worth $2.025MM, according to the Associated Press.
- The Marlins have agreed to terms one-year deals with Leo Nunez and Edward Mujica, according to Joe Capozzi of the Palm Beach Post (via Twitter). Nunez will earn $3.65MM, Joe Frisaro of MLB.com tweets. Meanwhile, Mujica will make $800K according to Juan C. Rodriguez of the Sun Sentinel (via Twitter).
- The Blue Jays and Casey Janssen have agreed to a one-year deal worth $1.095MM, according to the Associated Press.
- The Rays and B.J. Upton avoided arbitration, agreeing to a one-year deal worth $4.825MM, according to Marc Topkin of the St. Petersburg Times (Twitter links).
- The Nationals avoided arbitration with John Lannan, agreeing to a one-year, $2.75MM deal, according to Adam Kilgore of the Washington Post.
- The Rockies and Matt Lindstrom agreed to a two-year deal.
- The Royals avoided arbitration with Robinson Tejeda, agreeing to a one-year contract, the team announced. It's worth $1.55MM, according to Bob Dutton of the Kansas City Star (on Twitter). The deal leaves Billy Butler and Kyle Davies as Kansas City's remaining unsigned arbitration eligible players.
Quick Hits: Athletics, Nunez, Rangers, Pavano, Pujols
On this day 15 years ago, Blue Jays skipper John Farrell signed with Mariners as a free agent. Let's take a look at today's links..
- Mychael Urban of CSNBayArea.com applauds Athletics GM Billy Beane for upgrading the club's bullpen this winter.
- Leo Nunez's $3.65MM 2011 salary is the most ever for a Marlins reliever under owner Jeffrey Loria, tweets Juan C. Rodriguez of the Sun Sentinel. The previous watermark was Armando Benitez's 2004 salary of $3.5MM.
- The Rangers are looking to fill their final roster spot, writes MLB.com's T.R. Sullivan. Rangers CEO Chuck Greenberg also says that the club plans on extending the contract of GM Jon Daniels this winter.
- The Pirates have made a run at Carl Pavano, but the hurler prefers the Twins as they are a contending team where he can be the ace, writes Jon Heyman of Sports Illustrated.
- Reds GM Walt Jocketty told Mark Sheldon of MLB.com that he is working to sign arbitration eligible players Edinson Volquez, Johnny Cueto and Bill Bray before the Tuesday deadline.
- The Cardinals have to get a deal done with Albert Pujols, writes Ken Rosenthal of FOXSports.com.
Mariners Notes: Olivo, Kennedy, Bard
Here are the contract details on three of the newest Mariners, courtesy of MLB.com's Greg Johns..
- Catcher Miguel Olivo's two year contract includes a team option for 2013. The veteran will make $2.75 this season, $3.5MM in 2012, and will receive a $750K buyout if his option is not picked up, bringing his guaranteed total to $7MM. If the M's pick up his option in '13, Olivo will earn a base of $3MM that could rise to as much as $3.75MM based on how much he plays in '11 and '12.
- Infielder Adam Kennedy will make $750K if he makes the big league roster. The 35-year-old's contract includes playing-time bonuses that start kicking in at $50K for 350 plate appearances. He could as much as $450K if he reaches 600 plate appearances.
- Catcher Josh Bard will also earn $750K if he makes the major league squad. Bard's bonuses begin at 300 plate appearances and could reach $250K for 500 plate appearances.
- Both Bard and Kennedy can exercise an out clause if they're not on the major league roster by the end of March.
Diamondbacks, Nationals Interested In Heilman
The Diamondbacks and Nationals are among several clubs that have expressed interest in free agent Aaron Heilman this winter, according to Jerry Crasnick of ESPN (via Twitter). After five straight years of 70-plus appearances out of the bullpen, Heilman is looking to become a starter.
Heilman, 32, posted a 4.50 ERA with 6.9 K/9 and 3.3 BB/9 for the D'Backs last season. Since he declined Arizona's arbitration offer, the club will not receive compensation if they lose the Type B free agent. Last month we learned that the Rockies and Pirates were interested in the right-hander as a reliever.
Twins Notes: Pavano, Liriano, Crain, Punto
Let's take a look at some Twins tidbits..
- The Twins and Carl Pavano are still close to a deal but appear to be in a temporary holding pattern, writes Joe Christensen of the Star Tribune. The sides still have some details to work out but they've agreed to put the talks on hold through Tuesday.
- Tabling the talks with Pavano should allow the Twins to focus on their potential arbitration cases. Matt Capps, Francisco Liriano, Kevin Slowey, Glen Perkins, and Delmon Young are all scheduled to swap figures with the Twins on Tuesday. Christensen points out that the Twins settled all eight of their potential arbitration cases at the eleventh hour last year.
- The Twins made some attempts to retain Jesse Crain but ultimately knew that relievers Brian Fuentes, Matt Guerrier, and Jon Rauch would sign elsewhere, according to Christensen.
- Nick Punto is still on the open market but the Twins don't have any plans to bring the infielder back, writes Sid Hartman of the Star Tribune. Punto, 33, has spent the last seven years with the Twins, hitting .248/.323/.324.
Pujols Eyes A-Rod Money; Cards Are Hesitant
It doesn't sound like Albert Pujols’ representatives are going to be shy in their negotiations with the Cardinals. There are early indications that Pujols and agent Dan Lozano have used Alex Rodriguez’s ten-year $275MM contract as the lone point of reference in discussions for a potential extension, according to Jon Heyman of SI.com.
However, the Cardinals “are said to have initially suggested a contract that would guarantee Pujols at least a bit less than $200MM,” Heyman writes. Heyman’s sources believe the Cardinals would prefer not to guarantee Pujols more than seven years. One person said the Cards could offer a seven-year, $196MM deal. Other insiders suggest the team could agree to a $30MM annual salary or a ten-year deal, but not both.
Most people Heyman surveyed suggest Pujols won’t top $250MM if he signs an extension, since he is not negotiating on the open market and since the Yankees and Red Sox have established first basemen.
Click here to vote on Pujols’ future, which will unfold within the next month or so. Lozano set a Spring Training deadline for a possible extension. If the sides don’t reach a deal, the three-time MVP will hit free agency after the coming season. As I explained here, A-Rod money is not an unreasonable target for Pujols.
Teams Continue To Search For Pitching
Teams are still hunting for pitching even as the free agent pool continues to shrink. The Padres, Cardinals, Pirates and Mets are looking for arms, according to Jon Heyman of SI.com (on Twitter). ESPN.com's Jerry Crasnick notes that the Rays and Nationals have not stopped shopping, either (Twitter link).
Two AL East clubs, the Orioles and Yankees have some interest in Freddy Garcia, according to Heyman.
Over in the NL East, the Nationals and Mets have made progress on deals for pitchers today. The Nationals are set to acquire Tom Gorzelanny from the Cubs and the Mets are nearing a deal with Chris Young.

